Purpose of the Bill

This bill aims to address the need for equitable funding of road maintenance and infrastructure through a new system for collecting fees from electric vehicle owners. As electric vehicles do not traditionally pay gasoline taxes, which fund road maintenance, this bill introduces a road usage charge specifically for all-electric vehicles.

Main Provisions

• Road Usage Charge: The bill establishes a road usage charge for owners of all-electric vehicles registered in Minnesota. This charge is calculated based on the miles traveled by the vehicle within the state and is in addition to existing motor vehicle taxes.

• Calculation Methods: The charge can be calculated in two ways:

  • Based on the actual miles traveled by the vehicle during a billing period, applying a formula that involves state excise tax rates and the analogous fuel economy.
  • Alternatively, using an estimated average daily vehicle miles traveled if actual miles tracking is not active.

• Administration and Management: The bill requires agreements with account providers to manage account setups, calculate charges, handle billing, and ensure secure data management. Providers will also be responsible for verifying odometer data and providing customer service.

• Data Usage and Privacy: Data related to road usage will be strictly managed to protect personal information. Geolocation data specifically tied to individuals or vehicles will not be shared with the government unless required by a court order.

• Revenue Allocation: Funds collected from this charge will be deposited into the highway user tax distribution fund, supporting the maintenance and development of transportation infrastructure.

Significant Changes to Existing Law

• New Definitions Added: The bill adds new subdivisions to define electric vehicles and govern data related to road usage charges.

• Implementing Technology: Requires vehicle manufacturers to provide account providers access to vehicle mileage and odometer data with owner permission.

• Annual Reporting: Mandates that a report on the implementation and financial status of the road usage charge program be submitted to the relevant legislative committees by November 15 each year until June 30, 2031.

Relevant Terms

road usage charge, electric vehicles, odometer data, highway user tax distribution fund, account providers, geolocation data, excise tax rates, analogous fuel economy, vehicle miles traveled.