DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
title
Approval Of Resolution Increasing Wheelage Tax Rate In Dakota County From $10 To $20 Per Year
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PURPOSE/ACTION REQUESTED
Approve a resolution increasing the wheelage tax rate in Dakota County from $10 to $20 per year, effective January 1, 2027.
SUMMARY
Minn. Stat. ?163.051 authorizes the Board of Commissioners to levy, by resolution, a wheelage tax on each motor vehicle. By Resolution No. 06-250 (June 20, 2006), the Dakota County Board of Commissioners authorized a wheelage tax rate of $5 per year effective January 1, 2007.
During the 2013 legislative session, the Minnesota Legislature amended Minn. Stat. ?163.051 to broaden the wheelage tax from metropolitan counties to all counties in the state and increased the allowable wheelage tax rate from $5 to $10 per vehicle, with a provision allowing counties to further increase the tax up to $20 beginning January 1, 2018. Per Minn. Stat. ?163.051, the wheelage tax rate in Dakota County automatically increased from $5 to $10 effective January 1, 2014.
At the current rate of $10, Dakota County wheelage tax generates approximately $4.2 million per year. These funds are deposited in the County's Transportation Fund and are used for highway purposes within the meaning of Minnesota Constitution, Article 14. A highway purpose is generally to "construct, improve and maintain public highways."
Increasing the wheelage tax from $10 to $20 is estimated to generate an additional $4.2 million in revenue per year. This additional revenue would be used to support the costs of Transportation Department vehicles in the Fleet Capital Equipment Program (CEP), Transportation Department maintenance and operations costs, and the Transportation Capital Improvement Program (CIP).
RECOMMENDATION
recommendation
Staff recommends that the Dakota County Board of Commissioners adopt a resolution increasing the wheelage tax rate in Dakota County from $10 to $20 per year and have ...
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