HF3189 (Legislative Session 94 (2025-2026))
Kilowatt per hour tax imposed for electric vehicle charging.
Related bill: SF2092
AI Generated Summary
Purpose of the Bill
The bill aims to establish a new tax on the charging of electric vehicles (EVs) at public charging stations in Minnesota. This is intended to provide a consistent revenue source for transportation infrastructure and support the advancement of transportation technology.
Main Provisions
- Electric Fuel Tax: Starting October 1, 2025, a five-cent tax per kilowatt-hour will be imposed on electric fuel delivered to EVs at public charging stations. This tax will need to be paid monthly by charging station operators.
- Revenue Allocation: The revenue from this tax will be split equally between the highway user tax distribution fund and the transportation advancement account.
- Exclusions: The tax does not apply to EVs charged at private residences or at public charging stations with capacities under 50 kilowatts that do not require payments for use.
- Legacy Chargers: Charging stations that were in operation before October 1, 2023, and cannot measure electric fuel transferred, are exempt from this tax until January 1, 2032.
Significant Changes to Existing Law
- Repeal of Existing Surcharge: The bill repeals a previous surcharge of $75 on all-electric vehicle registrations. This change aligns with the transition to the consumption-based electric fuel tax model.
- Requirement for New Chargers: Any new public charging stations established after October 1, 2025, must have a metering system in place to charge by kilowatt-hour.
Relevant Terms
- Electric vehicle tax
- Public charging station
- Kilowatt-hour tax
- Electric fuel
- Legacy chargers
- Vehicle registration tax repeal
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| April 20, 2025 | House | Floor | Action | Introduction and first reading, referred to | Transportation Finance and Policy |
| April 20, 2025 | House | Floor | Action | Introduction and first reading, referred to | Transportation Finance and Policy |
| April 21, 2025 | House | Floor | Action | Author added | |
| April 21, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'Electric utility' as used in determining applicability for electric vehicle charging regulations.",
"modified": [
"Clarifies the definition of 'Electric utility' in line with transportation tax implications."
]
},
"citation": "216B.38",
"subdivision": "subdivision 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'Electric vehicle' within the context of transportation-related statutes.",
"modified": [
"Refines the definition specific to electric vehicle tax and regulatory requirements."
]
},
"citation": "169.011",
"subdivision": "subdivision 26a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Directs a portion of collected electric vehicle charger taxes to the highway user tax distribution fund.",
"modified": [
"Allocates tax revenue from electric fuel tax to support highways."
]
},
"citation": "161.045",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Designates part of the electric vehicle charging tax proceeds to the transportation advancement account.",
"modified": [
"Divides financial resources for broader transportation development purposes."
]
},
"citation": "174.49",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Eliminates surcharge on all-electric vehicles under subdivision 1m."
],
"summary": "Previously imposed a surcharge for all-electric vehicles, now repealed by this bill.",
"modified": []
},
"citation": "168.013",
"subdivision": "subdivision 1m"
}
]