Don’t Jack the Tax — Car Tab Fees Minnesota
Minnesota has the largest budget surplus in history and Governor Walz and Democrats still want to raise car tab fees, every year! Their new plan will collect taxes on 160% of the value of your car.
Gas prices and inflation are still high, and Democrats are making it worse with higher car tab fees.
Gov. Walz wants to dramatically increase the cost of your annual license tab for your automobile. It’s a 60 percent increase in year one of car ownership, and an overall 20 percent increase over the expected life of a car.
Here’s the official MNDOT example, using a $40,000 purchase price:
The state expects the increase to bring in an additional $700 million per year in tax revenue, at a time when the state is showing an $18 billion budget surplus.
In additional to the minimum fee of $35, Minnesota imposes a registration tax based on the car’s value. It’s calculated against the Manufacturer’s Suggested Retail Price (MSRP) of the car when new. (Minnesota Statute 168.013.)
Currently, the initial tax is 1.285 percent of the MSRP, plus 10 dollars. To illustrate, if you buy and register a brand-new $30,000 car, the registration tax would be $395.50. (There are lots of other taxes and fees, including hefty sales taxes).
Year 2, the registration tax is 90 percent of that. Year 3, 80 percent, and so on.
Under Walz’ proposal, the tax increases to 1.285 percent of 160 percent of the MSRP, or $626.80. You don’t have to be a math genius to calculate that the tax went up 60 percent. Year 2, the tax is on 100 percent of MSRP. Year three, on 90 percent, and so on.
It’s as if you paid $48,000 for a $30,000 car!
The hidden increase in the license tab fee is just one of many new taxes proposed by Walz, at a time of record budget surpluses.
Gov. Walz proposes to tax 160% of your car’s value
Huge surplus does not deter Walz from raising taxes
MN Democrats pushing ahead with taxing 160 percent of your car’s value