Chippewa County adopts wheel tax, considers sales tax – West Central Tribune

MONTEVIDEO — Chippewa County will join the growing ranks of counties imposing a vehicle wheel tax to help fund road and bridge needs.

In a unanimous vote Tuesday, the county board of commissioners approved a $10 wheel tax, applicable to vehicle plate renewals in 2025.

The tax is expected to bring in $132,000 a year for the county, according to Candice Jaenisch, chairwoman of the board.

Currently, 54 of Minnesota’s 87 counties participate in the vehicle tax program, according to the Department of Public Safety. Kandiyohi, Renville, Swift and Lac qui Parle counties are among the participating counties in the region.

In a related action, commissioners also agreed to hold a public hearing to consider adopting a 0.005 percent sales tax. Based on discussions at the meeting, the tax could raise between $500,000 and $550,000 annually.

If approved, sales tax revenue would also go toward county road and bridge needs.

In addition to the county’s road and bridge needs, commissioners will face significant capital expenditures in the coming years. Among the priorities are projects to address facility needs for family services operations. Also discussed was the need to replace the county jail in the coming years.

During the discussions, commissioners noted that road tax and sales taxes help spread the tax burden. Currently, the tax burden falls almost entirely on property taxes.

Jaenisch said she would like to see the county build up its reserves and set aside funds for future needs. She said the county’s financial reserves have taken a hit in recent years.

The county dipped into its reserves to provide $3 million to the Montevideo Veterans Home project and recently drew on its reserves to cover losses in family services.