Surprise! The Cost Of License Tabs Could Skyrocket In Minnesota
While the state of Minnesota currently has an estimated 17 billion dollar budget surplus, the cost of renewing your license tabs could soon be going way up.
The Minnesota Legislature Is Working on Passing a Two-Year State Budget This Year
The Minnesota Legislature is currently in the middle of its 2023 session, and one of the major things state lawmakers have to accomplish before the session adjourns in May is passing a new two-year state budget.
While both political parties will likely offer up various budget proposals, Gov. Walz has already released his proposed budget, and one of the most talked-about parts of his proposal was a provision that would offer up tax rebates of $1,000 dollars to certain Minnesotans.
Why the Cost of Your Vehicle License Plate Tabs in Minnesota Could Skyrocket
This is good, seeing as you'll likely need that extra grand if you drive a car in the Bold North. Because buried in the fine print of his proposal was also a provision that would *increase* the cost of renewing your Minnesota automobile registration and license plate tabs. A lot.
The tab fee for a brand-new car would be based on 160% of the MSRP, up from the 100 percent under current law. For a $30,000 vehicle, the fee would increase from the current $395 to a whopping $626.
FOX 9 also noted that the fee increase would get smaller as your vehicle ages, as it currently does. And for vehicles at least 10 years old, the registration fee would change to $30, which is $5 less than the current law.
Of course, your local municipality can also add extra fees to your registration, making renewing your tabs even MORE expensive here in the Land of 10,000 Lakes. For instance, Olmsted County, along with 53 other counties, also conveniently charges you a $10 'wheelage tax' as well.
Minnesotans Pay Way More in Vehicle Registration Fees Than Other States
If you think that seems like a LOT of money, you're not alone. Especially when you contrast those massive Minnesota registration fees with the flat $85 fee the state of Wisconsin currently charges no matter which type of vehicle you drive! (There are $75 hybrid and $100 electric vehicle surcharges in Wisconsin as well.)
Of course, those increases right now are just *proposed*, they haven't been included in any bill passed by the state Legislature (because the state House and Senate haven't passed a budget bill yet.) But it'll definitely be something to keep an eye on as lawmakers work on and eventually pass a state budget later this spring.