Minnesota Senate Bill SF966

Minnesota 2025-2026 Regular Session

• Introduced: 2/3/25
• Refer: 2/3/25
• Refer: 4/1/25

Caption

Electric vehicle surcharge modification

Impact

The bill impacts state laws concerning the taxation of electric and hybrid vehicles. By increasing the financial obligations on owners of all-electric and hybrid vehicles through new surcharges, the bill reflects state efforts to regulate emerging vehicle technologies while ensuring substantial contributions to transportation infrastructure. The new surcharges and adjustments according to gasoline tax fluctuations may lead to complex administrative changes within state transportation budgets.

Summary

SF966 is a bill designed to modify surcharges on electric vehicles in Minnesota. Specifically, it introduces and amends surcharges for various vehicle types, including all-electric and plug-in hybrid vehicles, as well as electric motorcycles and plug-in hybrid electric motorcycles. The surcharges range from $30 to $150, depending on the vehicle type, and the revenue generated from these surcharges is directed to the highway user tax distribution fund, aiming to enhance transportation funding in the state.

Contention

While the bill aims to bolster funding for transportation through these surcharges, discussions surrounding it may revolve around the implications for electric vehicle adoption. Critics may argue that higher surcharges could deter potential buyers from switching to electric or hybrid vehicles, thereby stifling an important transition toward sustainable transportation. Proponents, on the other hand, may emphasize the necessity of such measures to maintain and improve state infrastructure amidst increasing electric vehicle usage.