Surcharges for all-electric vehicles and plug-in hybrid electric vehicles modified, and vehicle weight surcharge established.

A bill for an act

relating to transportation; modifying surcharges for all-electric vehicles and plug-in

hybrid electric vehicles; establishing vehicle weight surcharge; amending Minnesota

Statutes 2024, section 168.013, by adding a subdivision; Minnesota Statutes 2025

Supplement, section 168.013, subdivisions 1m, 1n.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1m, is

amended to read:

Subd. 1m.

Electric vehicle.

(a) A surcharge
deleted text begin
as provided in paragraph (b) or (c)
deleted text end
new text begin
of $100
new text end

is imposed for an all-electric vehicle, as defined in section
169.011, subdivision 1a
. The

surcharge is in addition to the tax under subdivision 1a.

deleted text begin

(b) The surcharge is calculated as the greater of the minimum amount specified in

paragraph (c) or:

deleted text end

deleted text begin

(1) 0.5 percent of the manufacturer's suggested retail price, as determined under

subdivision 1a, paragraph (c); multiplied by

deleted text end

deleted text begin

(2) the percentage specified under subdivision 1a, paragraph (e), clauses (1) to (10), for

the vehicle's year of life, or ten percent for a vehicle in its 11th and each succeeding year

of life.

deleted text end

deleted text begin

(c) The minimum amount is:

deleted text end

deleted text begin

(1) $150 for a registration period beginning on or after January 1, 2026, and on or before

June 30, 2027; or

deleted text end

deleted text begin

(2) $100 for a registration period beginning on or after July 1, 2027.

deleted text end

deleted text begin

(d)
deleted text end
new text begin
(b)
new text end
Notwithstanding subdivision 8, revenue collected under this subdivision must be

deposited in the highway user tax distribution fund.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment and

applies to taxes payable for a registration period starting on or after January 1, 2027.

new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1n, is amended

to read:

Subd. 1n.

Plug-in hybrid electric vehicle.

(a) A surcharge
deleted text begin
as provided in paragraph (b)

or (c)
deleted text end
new text begin
of $50
new text end
is imposed for a plug-in hybrid electric vehicle, as defined in section
169.011
,

subdivision 54a. The surcharge is in addition to the tax under subdivision 1a.

deleted text begin

(b) The surcharge is calculated as the greater of the minimum amount specified under

paragraph (c) or:

deleted text end

deleted text begin

(1) 0.25 percent of the manufacturer's suggested retail price, as determined under

subdivision 1a, paragraph (c); multiplied by

deleted text end

deleted text begin

(2) the percentage specified under subdivision 1a, paragraph (e), clauses (1) to (10), for

the vehicle's year of life, or ten percent for a vehicle in its 11th and each succeeding year

of life.

deleted text end

deleted text begin

(c) The minimum amount is:

deleted text end

deleted text begin

(1) $75 for a registration period beginning on or after January 1, 2026, and on or before

June 30, 2027; or

deleted text end

deleted text begin

(2) $50 for a registration period beginning on or after July 1, 2027.

deleted text end

deleted text begin

(d)
deleted text end
new text begin
(b)
new text end
Notwithstanding subdivision 8, revenue collected under this subdivision must be

deposited in the highway user tax distribution fund.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment and

applies to taxes payable for a registration period starting on or after January 1, 2027.

new text end

Sec. 3.

Minnesota Statutes 2024, section 168.013, is amended by adding a subdivision to

read:

new text begin

Subd. 1o.

new text end

new text begin

Vehicle weight surcharge.

new text end

new text begin

(a) A weight surcharge is imposed on a passenger

automobile, as defined in section 168.002, subdivision 24, calculated as follows:

new text end

new text begin

(1) for a weight rating of less than 5,000 pounds, $0;

new text end

new text begin

(2) for a weight rating of 5,000 to 5,999 pounds, seven percent of the tax imposed under

subdivision 1a; and

new text end

new text begin

(3) for a weight rating of 6,000 pounds or more, ten percent of the tax imposed under

subdivision 1a.

new text end

new text begin

(b) The surcharge is in addition to the tax under subdivision 1a. The commissioner must

determine the weight rating from the gross vehicle weight rating of the vehicle, as indicated

on the manufacturer's certification label.

new text end

new text begin

(c) Notwithstanding subdivision 8, revenue collected under this subdivision must be

deposited in the highway user tax distribution fund.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment and

applies to taxes payable for a registration period starting on or after January 1, 2027.

new text end