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Commission sets June hearing on proposed wheel-tax increase; two options pitched
Summary
The Minnehaha County Highway Department proposed two wheel-tax options — a $1 increase per wheel up to a $60 max to cover all wheels or a $5-per-wheel increase only for vehicles over 6,000 pounds — and the commission set a June 17 second-reading public hearing, signaling preference for the heavier-vehicle option tied to grant scoring benefits.
Jacob Morris of the Minnehaha County Highway Department briefed commissioners on May 20 about two options to amend the county’s wheel tax to raise revenue for roads, bridges and maintenance, and commissioners scheduled a second-reading public hearing for June 17.
Morris described two options: "Option number 1 would increase the wheel tax $1, for the initial 4 wheels and an additional 8 wheels for a total of 12, with a maximum fee of $60. Option number 2 would leave vehicles under 6,000 pounds what they are today, and just increase to $5 a wheel over 6,000 pounds." He said Option 1 would generate about $1 million annually and Option 2 about $190,000.
The choice matters because wheel-tax revenue helps fund a five-year highway plan and also affects competitiveness for the state Bridge Improvement Grant. Morris said raising the wheel tax to $5 per wheel would add points in the Bridge Improvement Grant scoring. "The South Dakota Bridge Improvement Grant... gives awards points in their scoring system for wheel tax dollars that have been assessed," he said; moving from $4 to $5 per wheel would yield additional grant points.
Commission discussion focused on who would feel the impact. Morris said 6,000 pounds is roughly the top end for a Ford F-150, meaning Option 2 targets heavier trucks and commercial vehicles rather than most passenger cars. Commissioners noted that Option 2 would affect fewer drivers and still help the county secure extra grant points; some commissioners said they prefer Option 2 for that reason.
A motion to set the second-reading public hearing for June 17 and to advance Option B (the $5-per-wheel for vehicles over 6,000 pounds) carried on a roll call. The commission flagged that any change would take effect Jan. 1, 2026, to align with registration cycles and that the second hearing could still amend details.
Morris told commissioners that without a wheel-tax amendment, the highway fund remains solvent through the next biennium but projects in 2028–2030 would likely be deferred; Option 1 would represent about a 6.8% increase in highway revenue, Option 2 about a 1.3% increase.
No final rate was adopted at the May 20 meeting; the county will hold the public hearing June 17 and may adopt an ordinance at a subsequent meeting.
