Minnesota Senate Bill SF5310

Minnesota 2023-2024 Regular Session

• Introduced: 4/4/24
• Refer: 4/4/24

Caption

All-electric vehicles surcharge modifications

Impact

By shifting the surcharge structure, SF5310 intends to enhance state revenue that supports road maintenance and infrastructure. The revenue generated from the new surcharge will be directed to the highway user tax distribution fund, emphasizing the connection between vehicle usage and transportation funding. The proposed increase and the adjustable nature of the surcharge are expected to create a more equitable framework for funding state transportation initiatives amid the increasing popularity of electric vehicles.

Summary

SF5310 focuses on amending the surcharge imposed on all-electric vehicles registered in Minnesota. Under the proposed changes, the surcharge will increase from $75 to $137. Additionally, the bill mandates that this surcharge be adjusted annually by the commissioner based on the percentage increase in the gasoline excise tax rate. This adjustment aims to ensure that the electric vehicle surcharge remains proportionate to fuel taxes, thus reflecting the growing number of electric vehicle registrations and their usage on state roads.

Contention

Debate surrounding SF5310 may center on concerns regarding the increasing costs for electric vehicle owners, particularly as state budgets increasingly rely on user fees and surcharges from gas and electric vehicle drivers. Supporters argue that this bill facilitates a fair contribution to road funding from all vehicular users, regardless of fuel type. In contrast, opponents may express concerns that the increased surcharge disproportionately impacts lower-income individuals who are opting for electric vehicles as an economic alternative to traditional gas cars.