County board approves increase in wheelage tax
Published 7:55 pm Tuesday, July 19, 2022
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The Freeborn County Board of Commissioners on Tuesday approved a $5 per vehicle increase in the wheelage tax that will go toward rehabilitating or building roads in the county.
The $20 annual tax, the maximum allowed under state statute, will be for cars and trucks subject to annual registration and taxation, based on where the vehicle is ordinarily stored or parked during non-business hours or when not in use. The rate goes into effect for 2023 registrations.
The prior rate was $15 per vehicle.
The tax does not apply to motorcycles, motorized bicycles, mopeds and trailers.
Freeborn County Engineer Phil Wacholz said the county first approved a $10 wheelage tax in 2013, which was the maximum amount allowed at that time. In 2018, state statute changed to allow for the increase of wheelage tax to $20 per vehicle. The board in 2021 approved an increase to $15, opting not to increase to the full amount all in one jump.
Wacholz said the increase in the tax alone to $20 per vehicle will bring in an extra $150,000, for a total of $600,000 annually to the highway department budget.
Out of the 87 counties in the state, 53 counties impose a wheelage tax, and out of those 53, there are 15 that utilize the full $20 annual tax, he said.
Wacholz said the county’s transportation projects continue to increase in costs very quickly, and asked that the county fully utilize the revenue to help keep pace with the rising costs of the projects. He said he thinks there is a benefit to fully utilizing the tools the county has available so it can leverage state officials to increase statewide transportation funding.
Fifth Ward Commissioner Ted Herman said the wheelage tax is a way to keep up the funding without the roads falling too far behind.
“It’s not cheap to put these roads together and we all like driving on those nice paved roads instead of bumpy roads, and this is one way to fund that,” Herman said.
First Ward Commissioner Brad Edwin said taking care of the roads is one of the most important things the county provides for its citizens. He also noted that the county has one of the most extensive amount of roads to maintain in the state.
The increase passed unanimously.
Second District Commissioner Dan Belshan also asked Wacholz to look into the county’s aggregate tax and if that could increase.
Wacholz said he would look into that further.