Legislation would roll back 2023 fee increases, bring real relief to Minnesota drivers

State Senator Jeremy Miller (Winona) has signed on as a co-sponsor of Senate File 3669, a bill that would lower license tab fees for Minnesota vehicle owners by reversing changes made to the registration formula in 2023.

"Many constituents have reached out with concerns about the increase in license tab fees," Sen. Miller said. "Minnesotans are frustrated by seeing their tabs remain stubbornly high year after year. We are already an expensive state to live; this is one easy thing we can do to keep a little extra money in people’s pockets "

The 2023 changes increased the tax rate on vehicle registrations and slowed down how quickly a car is allowed to depreciate on paper, meaning drivers are taxed on an inflated value even as their car loses actual real-world value. A vehicle that has actually dropped 40% in value might only be recognized as having lost 10% of its value under the current formula.

The result is many drivers are experiencing sticker shock of tab fees that barely budge from year to year, no matter how old their car gets.

The Miller proposal reverses the 2023 changes. It lowers the tax rate back to pre-2023 levels and restores a faster depreciation schedule so that what you pay reflects what your car is actually worth.

Minnesota's vehicle registrations are already among the highest in the region. Tab fees here are 36% more expensive than Iowa, and more than 700% higher than Wisconsin and South Dakota for a typical new vehicle over five years.