Fischbach proposes to eliminate car license tax

This article submitted by Linda Stelling on 12/9/97.

Senator Michelle Fischbach (R-Paynesville) proposed the car license tax on vehicles valued under $30,000 be eliminated.

In a press conference at the state capitol last week, she said, ďThe state of Minnesota is finally in a position not to just reduce some taxes, but actually eliminate one. We are overtaxed and the surplus is proof of that.Ē

Fischbach proposed to do away with the yearly purchasing of ďtabsĒ for each license plate for personal vehicles valued under $30,000. All current revenues from the car license tax, used for road maintenance and construction, would be completely replaced with general revenue funds from the surplus and could actually increase with legislative action. Commercial vehicles would still be taxed, she added.

ďThis is the fifth straight time that state revenues have exceeded our projections,Ē Fischbach said. ďItís time we get rid of a yearly tax that dips into the pockets of almost every Minnesota family. Eliminating the car tax helps two income families who commute to work. It helps residents of Greater Minnesota who often travel long distances. It helps seniors who live on fixed incomes but need a reliable car. This is one tax that cuts across social and economic boundaries and itís time we get rid of it.Ē

The average two-car Minnesota family will save about $218 per year under the proposal. Over the lifetime of a Minnesota resident, who is purchasing their first car, the savings would be thousands of dollars. The proposal would also save money in administrative costs and would eliminate the yearly hassle experienced by car owners who are required to pick up their tabs.

Fischbach has talked with many of her fellow senators and have found they were receptive to the proposal. She will carry her bill to the Senate floor in January when they reconvene.

She concluded by stating, ďMinnesota has very high taxes compared to other states. With this surplus, we have a unique opportunity to completely eliminate one of the many taxes that Minnesotans pay. Itís time the legislature takes decisive action to make it less expensive to live and work in Minnesota.Ē

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