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SF2688 (Legislative Session 94 (2025-2026))

Surcharge on all-electric vehicles modification

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify existing surcharges on electric and plug-in hybrid vehicles in Minnesota. The bill aims to implement new surcharges on specific types of electric motorcycles and adjust surcharge rates annually based on changes in the gasoline excise tax rate.

Main Provisions

  • Surcharge Adjustments: The bill increases the current surcharge on all-electric vehicles from $75 to $200. Surcharges on vehicles will be updated annually based on changes in the gasoline excise tax.
  • New Charges: It introduces a $100 surcharge on plug-in hybrid electric vehicles.
  • Motorcycle Surcharges: The bill imposes a $40 surcharge on all-electric motorcycles and a $20 surcharge on plug-in hybrid electric motorcycles.
  • Rate Calculation: Each October, the surcharge rates can be adjusted according to any increases in the state's gasoline excise tax, and these adjusted rates will apply starting January the following year.
  • Revenue Destination: All surcharge revenues must be deposited into the highway user tax distribution fund.

Significant Changes to Existing Law

  • Definitions Added: New definitions for "all-electric motorcycles" and "plug-in hybrid electric motorcycles" are introduced.
  • Annually Adjusted Surcharges: Surcharge amounts will be recalculated annually based on modifications in fuel tax rates, a departure from fixed surcharge amounts in prior law.

Relevant Terms

electric vehicles, plug-in hybrid vehicles, electric motorcycles, surcharge, gasoline excise tax, highway user tax distribution fund, all-electric, plug-in hybrid motorcycle.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toTransportation
March 31, 2025SenateFloorActionComm report: No recommendation, re-referred toTaxes
April 09, 2025SenateFloorActionComm report: To pass and re-referred toTransportation

Citations

 
[
  {
    "analysis": {
      "added": [
        "Amendments to surcharge calculation mechanism, incorporating adjustments based on gasoline excise tax rate changes."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the surcharge on all-electric vehicles as outlined in section 168.013, subdivision 1m.",
      "modified": [
        "Surcharge for all-electric vehicles increased from 75 to 200."
      ]
    },
    "citation": "168.013",
    "subdivision": "subdivision 1m"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Mention of all-electric vehicle definition under section 169.011, subdivision 1a.",
      "modified": [
        ""
      ]
    },
    "citation": "169.011",
    "subdivision": "subdivision 1a"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Referenced regarding changes in gasoline excise tax rate that impact surcharge adjustments.",
      "modified": [
        ""
      ]
    },
    "citation": "296A.07",
    "subdivision": "subdivision 3"
  }
]

Sponsors