1.1 A bill for an act
1.2 relating to transportation; imposing a road usage charge for all-electric vehicles;
1.3 requiring a report; appropriating money; amending Minnesota Statutes 2024,
1.4 sections 13.6905, by adding a subdivision; 168.002, by adding a subdivision;
1.5 168.013, subdivision 1m; proposing coding for new law in Minnesota Statutes,
1.6 chapter 168.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2024, section 13.6905, is amended by adding a subdivision
1.9to read:
1.10 Subd. 39.Road usage charge data.Data related to road usage charges are governed
1.11by section 168.0132.
1.12 Sec. 2. Minnesota Statutes 2024, section 168.002, is amended by adding a subdivision to
1.13read:
1.14 Subd. 1a.All-electric vehicle."All-electric vehicle" has the meaning given in section
1.15169.011, subdivision 1a.
1.16 Sec. 3. Minnesota Statutes 2024, section 168.013, subdivision 1m, is amended to read:
1.17 Subd. 1m.Electric vehicle.(a) In addition to the tax under subdivision 1a, a surcharge
1.18of $75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.
1.19Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must
1.20be deposited in the highway user tax distribution fund.
1.21 (b) This subdivision applies to a registration period starting on or before June 30, 2026.
1Sec. 3.
S1480-1 1st EngrossmentSF1480 REVISOR KRB
SENATE
STATE OF MINNESOTA
S.F. No. 1480NINETY-FOURTH SESSION
(SENATE AUTHORS: CARLSON)
OFFICIAL STATUSD-PGDATE
Introduction and first reading40802/17/2025
Referred to Transportation
Comm report: Amended, No recommendation, re-referred to Taxes04/01/2025 2.1 Sec. 4. [168.0132] ROAD USAGE CHARGE.
2.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
2.3the meanings given.
2.4 (b) "Account provider" means a person, firm, corporation, or partnership of firms or
2.5corporations that performs road usage charge management for enrolled vehicle owners and
2.6usage charge calculation under an agreement with the commissioner.
2.7 (c) "Adjustment rate" means $0.065.
2.8 (d) "Analogous fuel economy" means distance traveled by a motor vehicle as it relates
2.9to fuel consumed by the vehicle, in miles per gallon, that applies for a specific vehicle
2.10classification and model year.
2.11 Subd. 2.Usage charge.(a) The owner of an all-electric vehicle must pay a road usage
2.12charge. The usage charge is in addition to the tax under section 168.013, subdivision 1a.
2.13The commissioner must impose the usage charge continuously for each registration period,
2.14using the relevant calculation under paragraph (b), (c), or both.
2.15 (b) For a billing period in which account management is active for a vehicle, the usage
2.16charge is calculated as:
2.17 (1) the miles traveled by the vehicle within Minnesota over the billing period; multiplied
2.18by
2.19 (2) the ratio that the total excise tax rate for gasoline under section 296A.07, including
2.20the surcharge rate under section 296A.083, bears to the analogous fuel economy, as
2.21determined in subdivision 3.
2.22 (c) For a billing period in which paragraph (b) does not apply, the usage charge is
2.23calculated as:
2.24 (1) the estimated average daily vehicle miles traveled per vehicle in Minnesota multiplied
2.25by the number of days in the billing period; multiplied by
2.26 (2) the total excise tax rate for gasoline under section 296A.07, including the surcharge
2.27rate under section 296A.083, divided by the analogous fuel economy, as determined in
2.28subdivision 3; plus
2.29 (3) the adjustment rate multiplied by the number of days in the billing period.
2.30 (d) The total road usage charge to an enrolled vehicle owner calculated in paragraph (b)
2.31for an entire vehicle registration period must not exceed the total that would otherwise apply
2.32under a corresponding calculation in paragraph (c).
2Sec. 4.
S1480-1 1st EngrossmentSF1480 REVISOR KRB 3.1 (e) The commissioner must estimate average daily vehicle miles traveled under paragraph
3.2(c), clause (1), in consultation with the commissioner of transportation, using the most
3.3recently available year of data.
3.4 Subd. 3.Analogous fuel economy.In consultation with the commissioner of
3.5transportation, the commissioner must determine analogous fuel economy for each vehicle
3.6subject to the usage charge under this section. The commissioner must use federal data on
3.7automotive trends maintained by the United States Environmental Protection Agency, and
3.8the determination must be based on:
3.9 (1) the vehicle classification that applies to the vehicle from among the following types
3.10or successor types as specified by the Environmental Protection Agency: sedan/wagon, car
3.11sport utility vehicle, truck sport utility vehicle, minivan/van, or pickup; and
3.12 (2) for the relevant vehicle classification, the final estimated real-world fuel economy,
3.13in miles per gallon, for the year matching the model year of the vehicle, or if that data is
3.14unavailable, for the year prior to the model year of the vehicle. To the extent feasible, the
3.15estimate under this clause must exclude all-electric vehicles.
3.16 Subd. 4.Road usage charge management agreement.(a) The commissioner must
3.17enter into an agreement with one or more account providers to perform road usage charge
3.18management. Each agreement must specify:
3.19 (1) account provider responsibility to enroll vehicle owners in usage charge management;
3.20 (2) road usage charge calculations and verification;
3.21 (3) designated responsibility for road usage charge billing, collections, and remittance,
3.22which may be performed by the commissioner, the account provider, or a combination of
3.23both;
3.24 (4) policies to determine whether road usage charge management is active for a vehicle;
3.25 (5) policies on prepayment, account balance minimum, and balance replenishment;
3.26 (6) audit activity, which must include providing for revising prior usage charges based
3.27on submitted odometer information;
3.28 (7) account provider responsibility for customer service;
3.29 (8) road usage charge information that is available to each enrolled vehicle owner, which
3.30must include vehicle miles traveled over each billing period and an overview of usage charge
3.31calculation;
3.32 (9) requirements governing terms and conditions for enrolled vehicle owners; and
3Sec. 4.
S1480-1 1st EngrossmentSF1480 REVISOR KRB 4.1 (10) standards for data security.
4.2 (b) The commissioner may award a contract for purposes of this subdivision under the
4.3best value method of contracting in conformance with chapter 16C.
4.4 Subd. 5.Account providers; implementation capability.(a) An account provider must
4.5be capable of accurately identifying miles traveled by the vehicle within Minnesota, whether
4.6from data supplied by a vehicle manufacturer or through a device that is affixed to the
4.7vehicle and transmits geolocation information.
4.8 (b) An account provider must have a reasonable anticipated capacity to implement, in
4.9the future, identification of vehicle miles traveled during specific times of day, over specific
4.10road segments, within managed lanes, and in a combination of these situations.
4.11 Subd. 6.Account providers; data practices.(a) An account provider must share with
4.12the commissioner the following data on an enrolled vehicle owner:
4.13 (1) data on the vehicle owner and the vehicle sufficient to identify the appropriate
4.14matching records in the driver and vehicle services information systems;
4.15 (2) the billing period; and
4.16 (3) the calculated usage charge amount.
4.17 (b) An account provider must submit the data listed in paragraph (a) electronically in
4.18the manner and by the dates specified by the commissioner.
4.19 (c) An account provider must not share with the commissioner, and the commissioner
4.20must not otherwise obtain from an account provider, geolocation data for a specifically
4.21identifiable vehicle.
4.22 (d) An account provider must not share or disseminate data on an enrolled vehicle owner
4.23with an entity other than the commissioner, except pursuant to a court order.
4.24 (e) Nothing in this subdivision prevents an account provider from sharing or disseminating
4.25summary data, as defined in section 13.02, subdivision 19.
4.26 (f) Services provided by an account provider under this section are not a government
4.27function for purposes of section 13.05, subdivision 11.
4.28 (g) An account provider's agreement with the commissioner is subject to section 13.05,
4.29subdivision 6.
4.30 Subd. 7.Odometer data.A manufacturer of a new motor vehicle sold or offered for
4.31sale within this state must provide access for vehicle mileage and odometer data to an
4Sec. 4.
S1480-1 1st EngrossmentSF1480 REVISOR KRB 5.1account provider for purposes of this section, following authorization by the vehicle owner
5.2or lessee. The access must be provided through an application programming interface or
5.3other similar information technology.
5.4 Subd. 8.Deposit of revenue.The proceeds from the usage charge imposed and collected
5.5by the commissioner under this section must be deposited in the highway user tax distribution
5.6fund under section 161.045.
5.7 Subd. 9.Legislative report.(a) By November 15 annually, the commissioner must
5.8submit a report to the chairs and ranking minority members of the legislative committees
5.9with jurisdiction over transportation policy and finance concerning the road usage charge.
5.10At a minimum, the report must:
5.11 (1) provide an implementation overview, including enrollment activity and vehicle miles
5.12traveled;
5.13 (2) summarize the agreement with each account provider, including information on each
5.14of the specified areas identified under subdivision 5, paragraph (a);
5.15 (3) review road usage charge finances, including total annual collections, revenue
5.16collected and deposited in the highway user tax distribution fund under subdivision 8,
5.17analogous fuel economy amounts, and average daily vehicle miles traveled estimates; and
5.18 (4) make recommendations, if any, on legislative changes to road usage charge
5.19requirements.
5.20 (b) This subdivision expires June 30, 2031.
5.21 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration
5.22period starting on or after that date.
5.23 Sec. 5. ROAD USAGE CHARGE; PHASE-IN.
5.24 (a) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a
5.25billing period that starts on or after July 1, 2026, and before July 1, 2027:
5.26 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision
5.272, paragraph (c), clause (2), are multiplied by 0.6; and
5.28 (2) the adjustment rate is multiplied by 0.6.
5.29 (b) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a
5.30billing period that starts on or after July 1, 2027, and before July 1, 2028:
5Sec. 5.
S1480-1 1st EngrossmentSF1480 REVISOR KRB 6.1 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision
6.22, paragraph (c), clause (2), are multiplied by 0.8; and
6.3 (2) the adjustment rate is multiplied by 0.8.
6.4 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration
6.5period starting on or after that date.
6.6 Sec. 6. APPROPRIATION; ROAD USAGE CHARGE.
6.7 $....... in fiscal year 2026 is appropriated from the driver and vehicle services operating
6.8account in the special revenue fund to the commissioner of public safety for administrative
6.9costs to implement the road usage charge under Minnesota Statutes, section 168.0132. This
6.10is a onetime appropriation and is available until June 30, 2028.
6Sec. 6.
S1480-1 1st EngrossmentSF1480 REVISOR KRB