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Minnesota residents could see price hike in licensing vehicles

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MINNESOTA -- Minnesotans may be facing a big increase when licensing their vehicles, for lawmakers to reach an agreement on transportation funding this year.

Governor Dayton has offered two proposals in a "compromise" to legislators, both include higher tab fees.

His plans include adding a base fee and tab fee price hike.

This would mean Minnesotans, for example, buying a $20,000 vehicle will be paying an additional $75 in tab fees, or $750 over ten years.

These increases vary depending on the year and cost of the vehicle.

Senate Republicans say median-income households won't be able to afford a used or new car with the hikes.

Some Minnesotans say, this won't go over well with the state.

"The average family probably wouldn't like it, because what you see on the road are newer vehicles," said Judy Mrosla, Moorhead.

Governor Dayton's office told us a tab fee increase wasn't his first choice, but the money is for Minnesota's $6-billion dollar need for road and bridge funding over the next ten years.