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

Actions

DateChamberWhereTypeNameCommittee Name
April 21, 2025HouseFloorActionIntroduction and first reading, referred toTransportation Finance and Policy
April 22, 2025HouseFloorActionAuthor 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"
  }
]