Minnesota House Bill HF2428

Minnesota 2023-2024 Regular Session

• Introduced: 3/2/23
• Refer: 3/2/23

Caption

Road usage charge imposed, report required, and money appropriated.

Impact

The implications of HF2428 are significant for state laws governing vehicle registration and transportation funding. Currently, electric vehicle owners are subject to a flat surcharge on registration, but the introduction of a mileage-based road usage charge could lead to a more equitable system of transportation revenue collection aligned with actual road use. This adjustment is seen as necessary to ensure that electric vehicle users partake in funding infrastructure maintenance, similar to the contributions from traditional fuel vehicles.

Summary

House File 2428 introduces a method for collecting a road usage charge specifically targeting owners of all-electric vehicles in Minnesota. The bill imposes a charge that is calculated based on miles traveled within the state, utilizing existing excise tax rates for gasoline as a basis for the calculation. It also requires that the revenue generated from this usage charge be allocated towards transportation funding, which includes operational costs for the vehicle services department and contributions to the highway user tax distribution fund. The enactment date is set for July 1, 2024, with a phase-in period for the charges in subsequent years.

Contention

However, HF2428 faces potential contention from various stakeholders. Advocates for electric vehicle owners may argue that the implementation of a road usage charge could be viewed as a punitive measure against those who have adopted more sustainable vehicle choices. Additionally, there are concerns regarding privacy and data collection related to tracking mileage, as the bill mandates reporting and management of vehicle miles traveled to facilitate the charge. The success and public acceptance of HF2428 will heavily depend on addressing these concerns and the effectiveness of communication regarding its objectives.