TRANSIT: Minn. governor proposes 0.25% sales tax for transit funding

Minnesota Gov. Mark Dayton submitted a proposal to the state legislature last week seeking a 0.25% sales tax for the seven counties in the Twin Cities metro area to increase transit funding. If the measure were enacted, supporters say that, combined with existing measures, it could generate up to $250 million annually for transit improvements.

Leaders of the state House and Senate transportation committees voiced their support for the plan, which would provide consistent transit funding for projects such as the addition of bus rapid transit and expansion of light rail options.

Five of the seven counties in question imposed their own .25% sales taxes back in 2008, with Carver and Scott counties opting out. Current sales taxes already bring in $101 million per year; Dayton’s proposal would add another $101 million, plus an estimated $5 million from Carver and Scott counties.