Vehicle Fees Could Jump With New MN Budget
ST. PAUL (WJON News) - Drivers might see a big bump in fees next year.
A section of Governor Walz’s proposed transportation budget would raise the registration fees for new vehicles by 60%.
Currently, a new vehicle is charged $10 plus 1.285% of 100% of the base value of the vehicle. The percentage of the base value drops by 10% every year until it reaches 10% in year ten. The flat tax for all vehicles over 10 years old is $35.
For example, the owner of a $40,000 vehicle will pay $524 in fees in year one ($10 + 1.285% of 40,000), $472.60 in year two ($10+ 1.285% of 36,000), and so on.
The proposed change would increase the first-year fees to 160% of the vehicle’s base value. In year two, the percentage drops to 100% in year two and drops by an additional 10% each year. The minimum fee for older vehicles would drop to $30.
For example, the owner of the same $40,000 vehicle would be charged $832.40 in year one ($10 + 1.285% of $64,000), $524 in year two ($10 + 1.285% of 40,000), and so on.
The change would create about $100,000 in additional fees each fiscal year.
The transportation budget is making its way through the Minnesota legislature.
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