Do You Know How Much Minnesota Taxes Your Gasoline?
That old saying about death and taxes being about the only things you can count on rings true, at least when it comes to buying a gallon of gasoline here in Minnesota.
I ran across this list from the Tax Foundation when writing a different post about how we could see a big dip in the price of gasoline in Minnesota, right around Tuesday's election. (You can read the reasons why experts are saying that HERE.)
But in the process, I looked into just how much tax we pay on a gallon of gasoline here, and how it compares to other states. Now, having grown up and lived over in Wisconsin, and can tell you without even looking at the list that gas prices-- thanks to the state taxes-- are way cheaper here in Minnesota than over in Wisconsin.
And, sure enough, the Tax Foundation list says that's true. Minnesota is ranked #28 out of our 50 states when it comes to gas taxes, with a tax rate of 28.6 cents per gallon. That puts us just into the lower half, right?
Wisconsin, meanwhile, is ranked 19th, with a gas tax rate of 32.9 cents a gallon. When I lived over in Eau Claire, we always theorized that there was some vast conspiracy that kept gas prices so much higher there than just 90 miles away in the Twin Cities. Turns out it was probably just the difference in state taxes-- though all that conspiracy talk was much more fun.
But here's where it evens out, though. While we pay less at the pump in Minnesota, our license tabs here are, of course, based on the value of your car. So if you have a newer vehicle, your tab fees are hundreds of dollars. But back in Wisconsin, though, it's a flat $75 fee no matter what you drive.
Which just means that whether it's at the pump or when it's when you renew your tabs, the state is going to get your money!