Purpose of the Bill

The purpose of this bill is to amend the laws related to electric vehicles in Minnesota by modifying existing surcharge requirements for all-electric vehicles and introducing a surcharge for plug-in hybrid electric vehicles. Additionally, it establishes procedures for transferring funds within transportation accounts.

Main Provisions

• Electric Vehicle Surcharge: The bill increases the surcharge on all-electric vehicles from $75 to $100. This charge is in addition to existing vehicle taxes.
• Inflation Adjustment: Every three years starting January 15, 2028, the surcharge for all-electric vehicles will be adjusted in accordance with changes in the gasoline excise tax. The adjusted surcharge will be rounded to the nearest $5 and will apply to the subsequent registration period.
• Transportation Funds Management: The bill creates a "transportation impact assessment and mitigation account," which will be used to fund projects aimed at reducing traffic fatalities and severe injuries linked to major highway projects. It outlines how funds are deposited and used.
• Account Transfers: From July 1, 2027, any excess in the account balance (defined as greater than 50% of the total deposits from the previous fiscal year) will result in transferring 90% of the lesser of the last fiscal year's balance or available unencumbered funds to the highway user tax distribution fund.

Significant Changes

• Surcharge Introduction for Plug-in Hybrids: Although specifically mentioned provisions for plug-in hybrids are not detailed, this bill introduces additional surcharges for owning such vehicles, hinting at a broadening of the surcharge system beyond all-electric vehicles.
• Re-distribution of Transportation Funds: The bill changes the way funds are managed, including introducing new account transfers aimed at ensuring balanced transportation funding, particularly for state highway projects.

Relevant Terms

electric vehicle, all-electric vehicle, plug-in hybrid, surcharge, gasoline excise tax, transportation fund, highway user tax distribution fund, transportation impact assessment and mitigation.