If you've bought tabs recently, you probably noticed something frustrating: it cost more than you expected. Maybe your bill didn't go down from last year as much as you expected. Maybe it stayed exactly the same. For a lot of Minnesotans, that's been true for the last couple of years.
Why, you ask? In 2023, when Democrats had complete control of state government, they rewrote the formula for calculating license tab fees. They raised the base tax rate, and they also slowed down how fast your car is allowed to depreciate on paper.
So even as your vehicle loses real-world value, the state keeps taxing it like it's nearly new. Kelley Blue Book will tell you a three-year-old car has typically lost about 40% of its value. Under the current formula, the state treats it like it's still worth 90% of what you paid.
Because of the Democrats’ law, tab fees are now staying stubbornly high year after year.
KSTP ran a story last fall about a driver from Plymouth who paid $398 in 2024, $398 in 2025, and $398 again in 2026. Three straight years, not a cent of relief. I wish I could say that person's story is unusual, but it’s not. I hear versions of it constantly around the district.
And here's some context on just how out of step Minnesota is with the rest of the region. Minnesota tab fees are 36% more expensive than Iowa, 366% more expensive than Illinois, 657% more than North Dakota, 728% more than Wisconsin, and 831% more than South Dakota (1). We’re not even close.
I am working on a bill that would roll back the Democrats’ tab fee increase and restore the formula to what it was before. It will mean real money back in your pocket. The goal is simple: a tab fee system that's fair, predictable, and actually reflects what your car is worth. My bill gets us closer to where we want to be.
The tab fee increase was one of many that Democrats passed when they had full control of state government. You’ll recall that Minnesota had an $18 billion surplus at the time. Many of us wanted to use that opportunity to provide people with some tax relief. Instead, they spent the entire surplus and raised $10 billion in taxes and fees.
People are now paying the price for those decisions. My tab fee proposal will reverse part of the damage they caused, but there is certainly more. That’s why my Senate GOP colleagues and I unveiled a broader relief agenda recently. The whole package is worth knowing about.
We also announced a proposal to rein in property tax increases for cities and counties over 2,500 people. If a local government believes it needs to raise property taxes above a certain threshold, our proposal says they must ask the voters for approval. Property taxes jumped by nearly a billion dollars last year, and homeowners have definitely been feeling the strain. Our bill will protect people against unreasonable increases.
Finally, we have proposals to eliminate state taxes on tips and overtime pay. This conforms to changes the federal government has already made, and it means more take-home pay for service workers and hourly employees.
Taken together, these bills address three areas that became much more expensive under one-party Democrat rule: wages, property taxes, and vehicle costs.
I've always believed the job of state government is to make Minnesota a place where people can afford to live, work, and raise a family. Right now, that's getting harder. These bills won't solve everything overnight, but they're a real good start.
Minnesotans have been waiting long enough for some common sense relief. These bills will give it to them.
Sincerely,
Senator Jasinski
(1) Five year tab fee totals calculated for a typical new $50,000 car.