Wonder Why Your License Tab Fees Aren’t Going Down?
Here’s the Truth — and What We’re Going to Do About It
By Phillip C. Parrish, Candidate for Governor of Minnesota
Tom Hauser of KSTP asked the question on every Minnesota driver’s mind: “Wonder why your license tab fees aren’t going down? Here’s why…”
It’s the kind of spotlight Minnesotans have needed—and one that my friend and fellow gubernatorial candidate Brad Kohler and I have been pushing for in our writings, speeches, and debates for months. Last night at the SD45 Republican gubernatorial forum, we both hammered this home again: Families are getting squeezed, and it’s time to call out the DFL’s backroom tax tricks.
Tom’s timing feels no coincidence. What if his deep dive was sparked by the steady drumbeat of exposure from candidates like us, who’ve been laying out these facts in town halls and op-eds? Either way, the truth is out now—and it’s uglier than most realize.
You deserve more than an explanation. You deserve accountability, transparency, and relief.
What Tom exposed is not a glitch. It’s not inflation. It’s not “the cost of roads.”
It’s a deliberate, backdoor tax hike engineered by one-party DFL control in St. Paul—and sold to you under the guise of “fairness.”
Let me break it down, substantiate it, and then tell you exactly how we fix it.
The Facts: How Minnesota Drivers Got Fleeced
In 2023, under full DFL control of the House, Senate, and Governor’s office, lawmakers passed a 1,000-plus-page transportation omnibus bill (HF 2887) that quietly rewrote how your license tabs are calculated.
Under the old system, your vehicle depreciated 10 percent annually after the first year, and the tax rate was 1.25 percent of MSRP. Fees dropped sharply with age, bottoming out around $25–$30 after ten years.
Now? Depreciation is slashed to just 5 percent per year for the first three years. The tax rate jumped to 1.54 percent—or 1.575 percent for newer registrations. Fees stay nearly flat for five to seven years, then lock at a $30 minimum after year ten.
Real-world example from the DVS calculator in November 2025: A 2022 Toyota Camry with an MSRP around $26,000 cost $398 to register in 2024. In 2026? Still $398. In 2028? $394.
That’s right—your six-year-old car costs nearly the same to register as when it was new.
This isn’t depreciation. This is taxation on phantom value.
And it gets worse.
The Hidden Agenda: “Progressive” Funding or Predatory Extraction?
DFL Senator Scott Dibble, chair of the Transportation Committee, calls this “progressive.”
Let’s translate: “We can’t raise the gas tax (frozen since 2017), so we’ll tax your car’s theoretical value instead—even if it’s rusting in your driveway.”
Meanwhile, Minnesota had an $18 billion budget surplus in 2023. Instead of rebates, tax relief, or infrastructure rebates—they spent it. And now they’re making you pay for roads twice: once at the pump, once at the DMV.
The EV Hypocrisy: Green Promises, Punitive Fees
Governor Walz loves to tout Minnesota as a climate leader.
But in 2025, the DFL doubled the EV surcharge from $75 to $200—one of the highest in the nation.
So let me get this straight: You buy an electric car to save the planet. You pay no gas tax (which funds roads). So the state punishes you with a $200-plus annual fee?
That’s not leadership. That’s greenwashing with a side of exploitation.
The Economic Exodus: Minnesota vs. Reality
Drive across the St. Croix River. Wisconsin license tabs? Capped at $85–$100. No tax on Social Security. Lower income taxes. Cheaper gas.
Result? Minnesotans register more than 50,000 vehicles in Wisconsin annually. We’ve lost over $550 million in revenue and jobs to border towns like Hudson and Eau Claire. Small businesses relocate. Families follow.
This isn’t just bad policy. It’s economic suicide.
The Ventura Standard: What Minnesota Used to Be
Remember 1998? Governor Jesse Ventura passed flat $89 tabs after the initial registration. No depreciation games. No hidden hikes. Just fair, predictable, affordable.
That was Minnesota common sense.
We can have it again.
The Parrish Plan: Fix the Tabs, Restore Trust
As your next Governor, I will champion the Minnesota Driver Relief Act—a simple, transparent, ironclad reform:
1. Restore Real Depreciation
10 percent per year from day one. Your three-year-old car should cost less to register—period.
2. Cap Tabs at $100 for Passenger Vehicles
No more $400-plus sticker shock. Wisconsin can do it. So can we.
3. Eliminate the EV Penalty
Replace the $200 surcharge with a mileage-based road user fee—fair, voluntary, and pro-innovation.
4. Mandate Tab Transparency
Every fee, surcharge, and tax itemized on your renewal notice. No more buried hikes.
5. Rebate Surplus, Don’t Spend It
Any budget surplus over 5 percent triggers automatic tab rebates—your money back in your pocket.
This Isn’t About Politics. It’s About People.
You’re not a revenue stream.
You’re a parent rushing kids to hockey.
A nurse on the night shift.
A farmer hauling grain at dawn.
You shouldn’t need a CPA to figure out why your tabs went up—again.
Tom Hauser shined a light—perhaps because voices like Brad’s and mine have been calling for it all along.
Now it’s time to turn on the floodlights.
Call to Action
Reply to this article. Share your tab story.
How much did you pay this year? Last year?
Tag @thauserkstp, @GovTimWalz, @ScottDibbleMN.
Let them see the faces behind the fees.
Then join me:
parrish4mn.com
Volunteer. Donate.
Together, we’ll make Minnesota affordable again.
Minnesota: Where your car gets older, but your government never lets go of your wallet.
Not on my watch.
Phillip C. Parrish
Candidate for Governor
#FixTheTabs #MNGov #ReliefNow
Sources: Minnesota Statutes §168.013, DVS Tax Calculator, HF 2887 (2023), Wisconsin DMV, Minnesota Management & Budget Feb 2025 Forecast, KSTP News