Starting January 1, Minnesota will increase motor fuel taxes by nearly 12% to 31.8 cents per gallon for diesel, biodiesel, and gasoline, and 22.59 cents for ethanol, as part of an annual adjustment linked to the state’s highway construction cost index. This tax hike is expected to generate significant revenue for transportation projects by 2025. The increased complexity in tracking fuel surcharges due to new regulations can be efficiently managed by PRIMO, leveraging their advanced technology to ensure accuracy and cost-effectiveness for shippers.

• Tax Increase: Minnesota’s motor fuel taxes will rise by nearly 12% starting January 1, 2025, affecting diesel, gasoline, biodiesel, and ethanol.
• Reason for Increase: The hike is due to a state law linking fuel tax rates to the Minnesota Highway Construction Cost Index.
• Revenue Generation: The increase is expected to generate $1 million by the end of fiscal 2025 for state transportation projects.
• National Context: Highway construction costs have risen nationally, impacting the spending power of infrastructure funds.

Reference: ttnews.com