Within his first few weeks as governor, Tim Walz (D.) proposed to hike the Minnesota state gas tax by a staggering 70 percent, an increase criticized as "highway robbery." Then, as inflation surged, Walz turned around and supported a federal gas tax pause.
Walz's first budget proposal, announced in February 2019, included a provision to increase the Minnesota gas tax by 20 cents, from 28.6 cents per gallon to 48.6 cents per gallon. That 70 percent increase would have taken the state from having the 29th-highest rate to the fourth-highest, placing it behind only Pennsylvania, California, and Washington, according to the Tax Foundation.
"I have often said that a budget is not only a fiscal document—it’s a moral document," Walz said after unveiling the proposal. "This budget reflects the morals of the people of Minnesota."
His office characterized the increase as "common-sense" and said it would help "keep Minnesotans safe, help businesses and farmers get goods to market," and prevent catastrophic infrastructure disasters.
But as pump prices surged amid historic inflation just three years later, Walz changed his tune on gas taxes. In June 2022, while running for reelection, Walz and five other Democratic governors penned a letter urging congressional leaders to pass legislation suspending the federal 18-cent gas tax until the end of the year.
Walz's position on gasoline taxes could prove to be a thorny topic for the governor as he hits the national campaign trail as the Democratic vice presidential nominee. The economy and stubbornly high consumer costs, including pump prices, have been regularly reported as the top issues for voters ahead of the 2024 election, recent polling data shows.
"Walz said he wanted a modest increase in the gas tax, and I think people were generally on board for that," Isaac Orr, an energy expert based in Minnesota, told the Washington Free Beacon in an interview. "Then, he comes out with a 20-cent increase in the gas tax. And people were like, 'this isn't what we voted for.'"
"The energy policies that Gov. Walz has enacted are more in line with voters in San Francisco than St. Cloud," Orr added.
During the 2018 election, a Walz spokeswoman said the "majority of Minnesotans support a modest gas tax increase," the Pioneer Press reported.
While his initial proposal was passed in the Minnesota state House of Representatives, Walz ultimately caved to pressure from the public and Republicans, with one calling the proposal "highway robbery." In May 2019, he signed a compromise budget backed by the state senate GOP caucus, which axed the 20-cent gas tax increase altogether.
"Stopping the gas tax increase was one of our top priorities, and I’m pleased Gov. Walz and House Democrats ultimately listened to the people of Minnesota and rejected this approach," said then-state senate majority leader Paul Gazelka (R.).
In early 2023, however, Walz signed a budget that directed his administration to study the implementation of a statewide clean transportation standard designed after regulations imposed in California. Far-left environmental organizations widely supported the action.
Under the budget, state agencies are required to study a standard mandating a reduction of the total carbon intensity of Minnesota’s transportation fuels by at least 25 percent below 2018 levels by 2030, 75 percent by 2040, and 100 percent by 2050. If implemented, the provision would represent the most stringent of its kind nationwide, according to the Great Plains Institute for Sustainable Development.
Walz's actions amount to a "stealth gas tax, increasing the cost of gasoline and diesel for families and businesses, but provide no money for roads and bridges," a policy brief published by the Center for the American Experiment earlier this year stated.
Also in 2023, Walz signed a transportation bill that increases the state gas tax on an annual basis beginning this year. The exact rate of increase is tied to the economy-wide construction cost index but is capped at 3 percent.
The Harris-Walz campaign didn't respond to a request for comment.