Tax on electricity sold as vehicle fuel modified, and money appropriated.

A bill for an act

relating to transportation; modifying tax on electricity sold as vehicle fuel;

appropriating money; amending Minnesota Statutes 2024, section 297A.67, by

adding a subdivision; Minnesota Statutes 2025 Supplement, sections 296A.01,

subdivisions 43a, 43b; 296A.051; 296A.075, subdivisions 1, 2, 3, 5; 296A.19;

296A.22, subdivision 3.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 43a, is

amended to read:

Subd. 43a.

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Public
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Retail
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charging station.

"
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Public
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Retail
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charging station" means a

facility at which a person conducts
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for-profit
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business using electric vehicle supply equipment

for the delivery of electricity sold as vehicle fuel to an electric vehicle and charges the

customer for the electricity delivered.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 43b, is amended

to read:

Subd. 43b.

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Public
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Retail
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charging station operator.

"
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Public
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Retail
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charging station

operator" means any person who owns or operates a
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public
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retail
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charging station in this

state.

Sec. 3.

Minnesota Statutes 2025 Supplement, section 296A.051, is amended to read:

296A.051
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PUBLIC
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RETAIL
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CHARGING STATION OPERATOR'S LICENSE;

REQUIREMENTS.

Subdivision 1.

General.

On or after July 1, 2027, a person may not act as a
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public
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retail
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charging station operator without having been licensed by the commissioner as a
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public
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retail
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charging station operator.

Subd. 2.

Qualifications.

(a) Upon application to the commissioner, the commissioner

must issue a
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public
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retail
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charging station operator's license to any person who applies and

qualifies as a
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public
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retail
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charging station operator.

(b) The commissioner must not issue or renew a license to a person otherwise eligible

under this subdivision if the person:

(1) has unpaid tax due under this chapter;

(2) has unfiled tax returns or reports due under this chapter;

(3) has had a license issued pursuant to this chapter revoked within the last five years;

or

(4) has had an equivalent license issued by another state or Canadian province revoked

within the last five years for failure to pay a tax or file a tax return or report.

Subd. 3.

Licensing period; expiration.

Each licensing period is for one year, ending

on June 30.

Subd. 4.

Surrender of license.

When a licensee voluntarily or involuntarily sells, disposes

of, or discontinues business during the licensing period, the licensee must immediately

notify the commissioner in writing and, within ten days, surrender the license in a manner

prescribed by the commissioner.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 296A.075, subdivision 1, is amended

to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given.

(b) "Electric utility" has the meaning given in section
216B.38, subdivision 5
.

(c) "Legacy charger" means a
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public
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retail
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charging station in operation before October

1, 2023, that does not utilize electric vehicle supply equipment capable of measuring

electricity delivered as vehicle fuel to an electric vehicle.

(d) "Residence" means the place where a person resides, permanently or temporarily.

Sec. 5.

Minnesota Statutes 2025 Supplement, section 296A.075, subdivision 2, is amended

to read:

Subd. 2.

Tax imposed on electricity sold as vehicle fuel.

(a) On and after July 1, 2027,

a tax is imposed on all
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public
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retail
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charging station operators for electricity sold as vehicle

fuel at a
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public
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retail
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charging station at a rate of five cents per kilowatt hour of electricity.

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(b) Annually on August 1, the commissioner must determine the tax rate applicable to

the sale of electricity sold as vehicle fuel at a retail charging station for the upcoming

12-month period beginning on January 1. The adjusted rate must equal the current rate,

multiplied by the sum of one plus the percentage increase, if any, in the Minnesota Highway

Construction Cost Index for the reference year. The tax rate must be rounded to the nearest

tenth of a cent. The tax rate must not be lower than the rate specified in paragraph (a). The

percentage change in the tax rate as a result of the requirements under this paragraph must

not exceed three percent.

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(c) For purposes of this subdivision:

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(1) the Minnesota Highway Construction Cost Index is as determined by the

commissioner of transportation; and

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(2) "reference year" means the 12-month period ending on June 30 two years prior to

the year in which the calculation is made.

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(b)
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(d)
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On or before the
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23rd of each month
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last day of each calendar quarter
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, a person

who is required to pay the tax imposed under this section must file with the commissioner

a report, in the form and manner prescribed by the commissioner, showing the number of

kilowatt hours of electricity sold as vehicle fuel delivered during the preceding calendar

month, and other information the commissioner may require. The return must be accompanied

by a remittance for the full unpaid tax liability shown by the return. All remittances must

be made by electronic means.

Sec. 6.

Minnesota Statutes 2025 Supplement, section 296A.075, subdivision 3, is amended

to read:

Subd. 3.

Requirement.

Any
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public
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retail
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charging station that first begins delivering

electricity sold as vehicle fuel on or after July 1, 2027, must be capable of imposing the

cost of electricity sold as vehicle fuel on a per-kilowatt-hour basis.

Sec. 7.

Minnesota Statutes 2025 Supplement, section 296A.075, subdivision 5, is amended

to read:

Subd. 5.

Exemptions.

(a) A legacy charger is exempt from the tax imposed under this

section for electricity sold as vehicle fuel through December 31, 2031. On and after January

1, 2032, a legacy charger must be capable of imposing the cost of electricity sold as vehicle

fuel on a per-kilowatt-hour basis.

(b) The tax imposed under this section is not applicable to:

(1) electric vehicles charged at a private residence that uses electric power paid for by

the owner or occupant of the residence and that is supplied to the residence by an electric

utility;

(2)
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public
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retail
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charging stations with a charging capacity of less than
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50
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three
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kilowatts;
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or
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(3)
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public
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retail
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charging stations that do not require payment for the delivery of electricity

as vehicle fuel
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.
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; or
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(4) electricity sold as vehicle fuel to the United States government to be used exclusively

in performing governmental functions and activities or to any "cost plus a fixed fee"

contractor employed by the United States government on any national defense project.

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Sec. 8.

Minnesota Statutes 2025 Supplement, section 296A.19, is amended to read:

296A.19 REQUIRED RECORDS.

Subdivision 1.

Retention.

(a) All distributors, dealers, special fuel dealers, bulk

purchasers, dealers of aviation gasoline, and all users of special fuel must keep a true and

accurate record of all purchases, transfers, sales, and use of petroleum products and special

fuel, including copies of all sales tickets issued, in a form and manner approved by the

commissioner, and must retain all such records for 3-1/2 years.

(b) All
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public
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retail
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charging station operators must keep a true and accurate record of

all electricity sold as vehicle fuel to and from
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public
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retail
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charging stations, in a form and

manner approved by the commissioner, and must retain all such records for 3-1/2 years.

Subd. 2.

Accessibility.

(a) The books and records of all carriers of petroleum products,

distributors, dealers, and persons selling or using special fuel must be made accessible to

the commissioner or an authorized representative.

(b) The books and records of all
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public
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retail
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charging station operators, and the books

and records of the entity that supplied electricity sold as vehicle fuel by the
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public
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retail
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charging station operator, must be made accessible to the commissioner or an authorized

representative.

Subd. 3.

Examination.

(a) The commissioner must make periodic examinations of all

records kept by distributors, special fuel dealers, bulk purchasers, or other persons selling

or using gasoline or special fuel.

(b) The commissioner must make periodic examinations of all records kept by
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public
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retail
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charging station operators that sell electricity as vehicle fuel through a
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public
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retail
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charging station.

Sec. 9.

Minnesota Statutes 2025 Supplement, section 296A.22, subdivision 3, is amended

to read:

Subd. 3.

Operating without license.

If any person operates as a distributor, special fuel

dealer, bulk purchaser,
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public
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retail
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charging station operator, or motor carrier without first

securing the license required under this chapter, any tax or fee imposed by this chapter shall

become immediately due and payable. A penalty of 25 percent is imposed upon the tax and

fee due. The tax and fees shall bear interest at the rate specified in section
270C.40
. The

penalty imposed in this subdivision shall bear interest from the date provided in section

270C.40
, subdivision 3, to the date of payment of the penalty.

Sec. 10.

Minnesota Statutes 2024, section 297A.67, is amended by adding a subdivision

to read:

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Subd. 41.

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Electricity sold at charging stations.

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(a) Electricity sold at a retail charging

station as vehicle fuel for an electric vehicle is exempt.

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(b) For purposes of this subdivision:

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(1) "electric vehicle" has the meaning given in section 169.011, subdivision 26a;

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(2) "electricity as vehicle fuel" has the meaning given in section 296A.01, subdivision

19c; and

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(3) "retail charging station" has the meaning given in section 296A.01, subdivision 43a.

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EFFECTIVE DATE.

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This section is effective for sales and purchases made after June

30, 2026.

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Sec. 11.
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APPROPRIATION; ELECTRIC VEHICLE INFRASTRUCTURE.
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$....... in fiscal year 2027 is appropriated from the general fund to the commissioner of

transportation for matching federal aid, related state investments, and staff costs for the

electric vehicle infrastructure program under Minnesota Statutes, section 174.47. This is a

onetime appropriation and is available until June 30, .....

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