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Dear Friends,
I hope your summer is going well!
I previously shared with you that Democrats voted to raise taxes last session by $9.8 billion while Minnesota has a $17.5 billion surplus. Minnesotans are set to face $3.8 billion in transportation tax hikes alone. Some of these tax increases are set to take effect as soon as July 1. Here are some of the new transportation-related expenses you can expect to face:
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Vehicle Registration Tax/Tabs: This tax hike averages to be a 36% increase over the first 11 years of your new vehicle. The change will apply to taxes payable for a registration period starting on or after January 1, 2024.
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Filing Fee increases: Filing fees will increase to $8 on every vehicle registration renewal, excluding pro rate transactions. This section is effective October 1, 2023.
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50 Cent Delivery Fee on retail deliveries over $100: Over $189 million over four years is expected to be leveled on residents who shop from home thanks to this tax. The fee will be implemented on deliveries over $100. Exemptions include deliveries for groceries, prepared food, baby products, and feminine hygiene products. The tax would begin on July 1, 2024, and is the largest delivery tax in the U.S.
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$6 Fee Increase for Driver licenses: This is effective July 1, 2023, and applies to applications made on or after that date.
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Gas Tax Automatic Increases for Inflation: The expected gas tax hike beginning January 1, 2024 is 5 cents over four years. Drivers will pay $423 million over four years for this Democrat priority.
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Autoparts Sales tax changes: This 0.75% increase in the 7 county Metro Sales Tax for Transportation will see 83% of funds go toward Metro Transit funding and 17% will be sent to Metro Counties for local road projects. This section is effective for sales and purchases made on or after October 1, 2023, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
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Increase in Motor Vehicle Sales Tax from 6.5% to 6.875%: Will give Minnesota the 5th highest Vehicle sales tax rate in the U.S. This section is effective for sales and purchases made on or after July 1, 2023.
My family just bought a used car – just in time for the motor vehicle sales tax increase that will start July 1. If you are in the market for a new car, now is the time to shop to avoid these tax increases!
These transportation tax hikes will hurt every Minnesota family. Democrats did not need to raise taxes when we had a record surplus, but instead they chose to put their spending priorities ahead of your family budget. It is disappointing that we couldn’t do more last session to support all Minnesotans and return the surplus to you.
On a lighter note, I will be walking in the Andover Family Fun Fest Parade on July 8 and the East Bethel Booster Days Parade on July 15. I will also have a booth at the Ham Lake Freedom Day celebration on July 1. Please say “hello” if you see me!
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