Counties authorized to levy a wheelage tax up to $35, and technical changes made.

Minnesota House File 1799 (HF1799) is a bill introduced in 2025 that proposes allowing counties in Minnesota to increase the wheelage tax—a tax on vehicles registered within the county—from a maximum of $20 to $35 per year. The bill also includes technical updates to the existing statute, such as clarifying language and updating terms. Certain vehicles, including motorcycles, motorized bicycles, and motorized foot scooters, would remain exempt from this tax. The bill was introduced on March 3, 2025, and referred to the House Transportation Finance and Policy Committee but did not advance further in the legislative process.

Supporters of HF1799 argue that increasing the wheelage tax cap would provide counties with additional revenue to fund transportation infrastructure projects, such as road maintenance and improvements. This could lead to better-maintained roads and enhanced transportation services for residents. The bill's sponsor, Representative Erin Koegel, emphasized the importance of giving counties more flexibility in generating funds for local transportation needs.

Opponents of HF1799 express concerns that raising the wheelage tax could place an additional financial burden on vehicle owners, particularly those in lower-income brackets. Critics also question whether the increased tax revenue would be used efficiently and whether it would disproportionately affect rural residents who rely heavily on personal vehicles for transportation. Some argue that alternative funding mechanisms should be explored to support transportation infrastructure without increasing taxes.