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SF2032 (Legislative Session 94 (2025-2026))

Wheelage tax up to $35 levied by counties authorization provision

Related bill: HF1799

AI Generated Summary

Purpose

The bill would authorize counties to levy a wheelage tax on motor vehicles kept in the county when not in operation and that are subject to annual registration under chapter 168. It establishes how the tax is set, collected, and who is exempt, with the goal of allowing counties to raise revenue for transportation-related needs.

Main Provisions

  • Authority for counties: Each county’s board of commissioners can levy by resolution a wheelage tax on applicable motor vehicles.
  • Tax base: The tax applies to motor vehicles kept in the county when not in operation and subject to annual registration under chapter 168.
  • Tax collection: Counties can choose to collect the tax through county officials or request that the state registrar of motor vehicles collect it on the county’s behalf.
  • Collection method: If requested, the state registrar of motor vehicles must collect the wheelage tax for the county.
  • Tax rate: The wheelage tax may be set at up to 35 per year, in whole-dollar increments, as specified by each county.
  • Exemptions: Vehicles exempt from the tax include motorcycles (as defined in 169.011(44)), motorized bicycles (169.011(45)), motorized foot scooters (169.011(46)), and vehicles meeting the requirements in 168.012(13).
  • Continuation for pre-2013 counties: For counties that authorized the tax before May 24, 2013, the wheelage tax continues at the rate that was in effect under the prior authorization.

Tax Rate and Scope

  • Maximum rate: Up to 35 per year, in whole-dollar increments.
  • Applicability: Vehicles kept in the county and subject to annual registration under chapter 168.
  • Not in operation: Applies specifically to vehicles kept in the county when not in operation.

Collection and Administration

  • Collection options: By county officials via resolution, or by the state registrar of motor vehicles at the county’s request.
  • County requests for collection: If a county requests, the state registrar must collect the tax on the county’s behalf.
  • Administration: The bill outlines how the tax is collected and who administers the collection, depending on the county’s chosen method.

Exemptions

  • Motorcycles (169.011(44))
  • Motorized bicycles (169.011(45))
  • Motorized foot scooters (169.011(46))
  • Vehicles meeting the requirements of 168.012(13)

Changes to Existing Law / Significance

  • Expands counties’ authority to impose a wheelage tax with a higher maximum rate (up to 35 per year) than prior limits.
  • Introduces or clarifies a collection option through the state registrar of motor vehicles, enabling centralized collection if a county opts in.
  • Codifies exemptions for specific small or non-typical vehicles (e.g., motorcycles, motorized scooters).
  • Maintains continuity for counties that already authorized the tax before May 24, 2013, by continuing the previously authorized rate for those counties.

Relevant Terms wheelage tax county board of commissioners resolution motor vehicle kept in the county not in operation annual registration chapter 168 state registrar of motor vehicles collection rate up to 35 per year increments whole dollar exemptions motorcycles motorized bicycles motorized foot scooters 168.012(13) May 24, 2013 pre-2013 counties

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 03, 2025SenateActionIntroduction and first reading
March 03, 2025SenateActionReferred toTransportation
March 06, 2025SenateActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Authorizes counties to levy a wheelage tax by resolution on certain motor vehicles.",
        "Allows the tax collection to be performed by county officials or the state registrar of motor vehicles."
      ],
      "removed": [],
      "summary": "This bill amends Minnesota Statutes 2024 section 163.051, subdivision 1 to authorize a county wheelage tax and to specify the tax collection mechanism, rate, and exemptions related to the wheelage tax.",
      "modified": [
        "Clarifies the rate is 'up to' a specified amount per year and ties the collection to county authorization; adds an exemption framework referencing a separate list of vehicle exemptions."
      ]
    },
    "citation": "163.051",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section's definition for motorcycles is used to determine wheelage tax exemptions.",
      "modified": []
    },
    "citation": "169.011",
    "subdivision": "subdivision 44"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section's definition for motorized bicycles is used to determine wheelage tax exemptions.",
      "modified": []
    },
    "citation": "169.011",
    "subdivision": "subdivision 45"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section's definition for motorized foot scooters is used to determine wheelage tax exemptions.",
      "modified": []
    },
    "citation": "169.011",
    "subdivision": "subdivision 46"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references 168.012, subdivision 13 to define criteria for exempt vehicles from wheelage tax.",
      "modified": []
    },
    "citation": "168.012",
    "subdivision": "subdivision 13"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minnesota Statutes chapter 168 for registration and taxation; no explicit amendments to chapter 168 are shown in this text.",
      "modified": []
    },
    "citation": "168",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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