Watch CBS News

Reality Check: Gas Tax Or License Tabs -- Which To Hike?

MINNEAPOLIS (WCCO) -- Minnesota lawmakers are divided on how to fund road and bridge repairs -- whether to use a gas tax hike or raise car license tab fees.

Here's the difference in cost: Minnesota's tax is 28.5 cents a gallon. For most cars with a 20-gallon tank, that's about $5.70 in taxes every time you fill up, or roughly $205.20 in taxes every year.

License tabs are a whole different category. Tabs for a new $30,000 car will cost about $385 in the first year, and $235 in Year 5.

So what's cheaper -- to raise a gas tax, or to charge more for license tabs?

It turns out, they're roughly the same. Raising a gas tax 5 cents will cost $36 more a year at the pump. A 10-cent hike will cost $72. And raising the gas tax 15 cents a gallon will generate $108 a year.

Compare that to raising license tab fees: On that $30,000 car, Gov. Mark Dayton's plan would cost you $124 the first year, and $152 in the fifth.

The Republican plan would cost you $5 more in the first year, and $112 more in Year 5.

More Sources Used For This Reality Check

Minnesota License Tab Fees
Minnesota Gasoline Consumption
Short Term Energy Outlook
Minnesota Fuel Taxes
Best Selling Cars & Trucks In Minnesota
Toyota Cars

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.