Gov. Tim Walz and Republican legislative leaders said last week they are open to a state gas tax holiday, but question its effectiveness.
Gov. Tim Walz, GOP leaders cool on idea of state gas tax holiday
They say tax rebates and tax cuts would have more impact.
June 25, 2022 at 9:13PM
President Joe Biden is urging Congress to suspend the federal 18.4-cent gas tax for three months. That could save Americans $2.76 for every 15 gallons they fill up.
Minnesota's gas tax is 28.5 cents. If that and the federal tax were suspended, Minnesotans could save about $7 on every 15-gallon fill-up.
State leaders said they had better ideas.
"It's not that effective," said Walz, adding that he would rather send $2,000 checks to families and $1,000 to individuals. But Walz said he would consider a state gas tax holiday if the Legislature supported it.
Republican House Minority Leader Kurt Daudt said he too would consider the idea if legislators ensured that road and bridge funding was not shorted. State gas tax revenue helps fund local roads and bridges.
GOP Senate Majority Leader Jeremy Miller said while he's open to the idea, he'd rather legislators pass Senate Republicans' proposed $8.5 billion in tax cuts.
"If you look at the numbers on the gas tax holiday, they're actually very minimal and would not impact family budgets as much as a permanent tax cut," Miller said.
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