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A bill for an act
relating to transportation; taxation; modifying requirements governing electric
vehicle surcharges and electricity as vehicle fuel taxes; imposing certain taxes;
establishing a tax credit; amending Minnesota Statutes 2024, section 296A.01, by
adding subdivisions; Minnesota Statutes 2025 Supplement, sections 168.013,
subdivisions 1m, 1n; 296A.01, subdivisions 19c, 43a; 296A.02, subdivision 3;
296A.051; 296A.06, subdivision 2; 296A.075; 296A.19; 296A.22, subdivision 3;
proposing coding for new law in Minnesota Statutes, chapter 290; repealing
Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 19b.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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SHORT TITLE.
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This act may be cited as the "If You Drive Act."
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Sec. 2.
Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1m, is amended
to read:
Subd. 1m.
Electric vehicle.
(a) A surcharge
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as provided in paragraph (b) or (c)
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of $350
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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.
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(b) The surcharge is calculated as the greater of the minimum amount specified in
paragraph (c) or:
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(1) 0.5 percent of the manufacturer's suggested retail price, as determined under
subdivision 1a, paragraph (c); multiplied by
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(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.
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(c) The minimum amount is:
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(1) $150 for a registration period beginning on or after January 1, 2026, and on or before
June 30, 2027; or
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(2) $100 for a registration period beginning on or after July 1, 2027.
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(b) The surcharge under this subdivision does not apply to a vehicle owner who:
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(1) owns or regularly uses a residential charger, as defined in section 296A.01, subdivision
45a:
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(i) that is operable at the location where the vehicle is normally domiciled; and
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(ii) in which electricity as vehicle fuel is taxed under section 296A.075, subdivision 2b;
and
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(2) attests to nearly exclusive charging of the vehicle through a residential charger;
public charging station as defined in section 296A.01, subdivision 43a; retail charging
station as defined in section 296A.01, subdivision 45b; or a combination.
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(d)
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(c)
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Notwithstanding subdivision 8, revenue collected under this subdivision must be
deposited in the highway user tax distribution fund.
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EFFECTIVE DATE.
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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.
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Sec. 3.
Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1n, is amended
to read:
Subd. 1n.
Plug-in hybrid electric vehicle.
(a) A surcharge
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as provided in paragraph (b)
or (c)
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of $200
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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.
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(b) The surcharge is calculated as the greater of the minimum amount specified under
paragraph (c) or:
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(1) 0.25 percent of the manufacturer's suggested retail price, as determined under
subdivision 1a, paragraph (c); multiplied by
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(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.
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(c) The minimum amount is:
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(1) $75 for a registration period beginning on or after January 1, 2026, and on or before
June 30, 2027; or
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(2) $50 for a registration period beginning on or after July 1, 2027.
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(d)
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(b)
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Notwithstanding subdivision 8, revenue collected under this subdivision must be
deposited in the highway user tax distribution fund.
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EFFECTIVE DATE.
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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.
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Sec. 4.
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[290.0689] CREDIT FOR RESIDENTIAL ELECTRIC METERING.
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Subdivision 1.
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Definition.
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For purposes of this section, "eligible metering costs" means
the amount an electric utility, as defined in section 216B.38, subdivision 5, charges a
residential property owner to install or provide an electric meter solely used to measure the
electricity used by a residential charger, as defined in section 296A.01, subdivision 45a.
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Subd. 2.
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Credit allowed.
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An individual taxpayer is allowed a credit against the tax
imposed under this chapter equal to the taxpayer's eligible metering costs paid in the taxable
year.
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Subd. 3.
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Credit refundable; appropriation.
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If the amount of credit the claimant is
eligible to receive under this section exceeds the claimant's tax liability under this chapter,
the commissioner must refund the excess amount to the claimant. An amount sufficient to
pay the refunds required by this section is appropriated to the commissioner from the general
fund.
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EFFECTIVE DATE.
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This section is effective for taxable years beginning after December
31, 2026.
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Sec. 5.
Minnesota Statutes 2024, section 296A.01, is amended by adding a subdivision to
read:
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Subd. 10a.
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Charging station operator.
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"Charging station operator" means a public
charging station operator or a retail charging station operator.
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Sec. 6.
Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 19c, is amended
to read:
Subd. 19c.
Electricity as vehicle fuel.
"Electricity as vehicle fuel"
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or "electricity sold
as vehicle fuel"
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means electrical energy that is transferred to or stored onboard an electric
vehicle
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in exchange for payment
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and
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is
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used primarily to propel the
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electric
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vehicle.
Sec. 7.
Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 43a, is amended
to read:
Subd. 43a.
Public charging station.
"Public charging station" means a facility
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available
to the public
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at which a person
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conducts for-profit business
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engages in
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using electric vehicle
supply equipment
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for the delivery of
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to deliver
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electricity
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sold
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as vehicle fuel to an electric
vehicle and
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charges the customer for
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is not charged on the basis of
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the electricity delivered.
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Public charging station includes a facility that is only available based on employment,
affiliation, or membership with an organization.
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Sec. 8.
Minnesota Statutes 2024, section 296A.01, is amended by adding a subdivision to
read:
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Subd. 45a.
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Residential charger.
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"Residential charger" means a device installed at a
private residence with which a person engages when using electric vehicle supply equipment
to deliver electricity as vehicle fuel to an electric vehicle.
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Sec. 9.
Minnesota Statutes 2024, section 296A.01, is amended by adding a subdivision to
read:
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Subd. 45b.
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Retail charging station.
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"Retail charging station" means a facility at which
a person conducts for-profit business or nonprofit activity using electric vehicle supply
equipment to deliver electricity as vehicle fuel to an electric vehicle and charges the customer
for the electricity delivered.
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Sec. 10.
Minnesota Statutes 2024, section 296A.01, is amended by adding a subdivision
to read:
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Subd. 45c.
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Retail charging station operator.
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"Retail charging station operator" means
a person who owns or operates a retail charging station in this state.
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Sec. 11.
Minnesota Statutes 2025 Supplement, section 296A.02, subdivision 3, is amended
to read:
Subd. 3.
Rules; administration and enforcement.
The commissioner may adopt rules
relating to the administration and enforcement of laws regulating the sale, distribution, and
use of petroleum products, electricity
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sold
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as vehicle fuel, and special fuel. The rules
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shall
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must
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be reasonable and consistent with the law.
Sec. 12.
Minnesota Statutes 2025 Supplement, section 296A.051, is amended to read:
296A.051
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PUBLIC
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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 public
charging station operator without having been licensed by the commissioner as a public
charging station operator.
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On or after July 1, 2027, a person may not act as a retail charging
station operator without having been licensed by the commissioner as a retail charging
station operator.
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Subd. 2.
Qualifications.
(a) Upon
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proper
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application to the commissioner, the
commissioner must issue
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:
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(1)
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a public charging station operator's license to any person who applies and qualifies
as a public charging station operator
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.
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; and
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(2) a retail charging station operator's license to a person who applies and qualifies as a
retail charging station operator.
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(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. 13.
Minnesota Statutes 2025 Supplement, section 296A.06, subdivision 2, is amended
to read:
Subd. 2.
Suspension of license.
(a) Notwithstanding subdivision 1, the license of a
distributor, special fuel dealer,
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public
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charging station operator, or bulk purchaser that has
not filed a tax return or report or paid a delinquent tax or fee within five days after notice
and demand by the commissioner is suspended. The suspension remains in effect until the
demanded tax return or report has been filed and the tax and fees shown on that return or
report have been paid. If the commissioner determines that the failure to file or failure to
pay is due to reasonable cause, then a license must not be suspended, or if suspended, must
be reinstated.
(b) A licensee whose license is suspended under this subdivision may request a contested
case hearing under chapter 14. Any such hearing must be held within 20 days of the issuance
of the notice and demand issued under paragraph (a), unless the parties agree to a later
hearing date. The administrative law judge's report must be issued within 20 days after the
close of the hearing record, unless the parties agree to a later report issuance date. The
commissioner must issue a final decision within 30 days after receipt of the report of the
administrative law judge and subsequent exceptions and argument under section
14.61
. The
suspension imposed under paragraph (a) remains in effect during any contested case hearing
process requested pursuant to this paragraph.
Sec. 14.
Minnesota Statutes 2025 Supplement, section 296A.075, is amended to read:
296A.075 ELECTRICITY AS VEHICLE FUEL TAX.
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
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delivered
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as vehicle fuel
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delivered
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to an electric vehicle.
(d) "Residence" means the place where a person resides, permanently or temporarily.
Subd. 2.
Tax imposed
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on electricity sold as vehicle fuel
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; public charging station
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.
(a)
On and after July 1, 2027, a tax is imposed on all public charging station operators for
electricity
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sold
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as vehicle fuel
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delivered
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at a public charging station
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at a
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. The
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rate
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of five
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at
each public charging station is: (1) six
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cents per kilowatt hour of electricity
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delivered; or
(2) $1,000 per 12-month period
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.
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(b) A public charging station operator may select the applicable rate under paragraph
(a), clause (1) or (2), for each public charging station and may modify the selection annually.
Rate selection must be submitted to the commissioner in the manner prescribed by the
commissioner.
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Subd. 2a.
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Tax imposed; retail charging station.
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On and after July 1, 2027, a tax is
imposed on all retail charging station operators for electricity as vehicle fuel sold at a retail
charging station. The rate is six cents per kilowatt hour of electricity delivered.
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Subd. 2b.
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Tax imposed; residential charger.
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On and after July 1, 2027, a tax is imposed
on electricity as vehicle fuel that is solely metered to a residential charger located where
the vehicle is normally domiciled. The rate is six cents per kilowatt hour of electricity
delivered. The tax must be remitted by the electric utility that supplies the electricity and
may be collected from the customer in the same manner as the tax imposed under chapter
297A. In lieu of this tax, the vehicle owner may attest to the utility company that the
surcharge imposed under section 168.013, subdivision 1m, has been paid.
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Subd. 2c.
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Tax reporting and remittance.
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(b)
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On or before the 23rd of each month, a
person who is required to pay
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the
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a
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tax imposed under this section
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on a per-kilowatt-hour
basis
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must file with the commissioner a report, in the form and manner prescribed by the
commissioner, showing the number of kilowatt hours of electricity
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sold
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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.
Subd. 3.
Requirement.
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Any public
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A retail
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charging station that first begins delivering
electricity
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sold
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as vehicle fuel on or after July 1, 2027, must be capable of imposing the
cost of electricity sold
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as vehicle fuel
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on a per-kilowatt-hour basis.
Subd. 4.
Deposit of revenues.
The commissioner must deposit the proceeds from the
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tax
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taxes
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imposed in this section in the highway user tax distribution fund.
Subd. 5.
Exemptions.
(a) A legacy charger is exempt from the tax imposed under this
section for electricity
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sold
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as vehicle fuel
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sold
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through December 31, 2031. On and after
January 1, 2032, a legacy charger must be capable of imposing the cost of electricity sold
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as vehicle fuel
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on a per-kilowatt-hour basis.
(b) The
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tax
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taxes
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imposed under this section
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is
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are
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not applicable to:
(1) electric vehicles charged at a private residence
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that uses
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by
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electric power
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that is:
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(i)
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paid for by the owner or occupant of the residence
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and that is
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;
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(ii)
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supplied to the residence by an electric utility;
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and
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(iii) not solely metered to a residential charger; or
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(2)
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public
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charging stations with a charging
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output
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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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.
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(3) public charging stations that do not require payment for the delivery of electricity
as vehicle fuel.
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Sec. 15.
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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charging station operators must keep a true and accurate record of all
electricity
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sold
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as vehicle fuel
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to and
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sold or delivered
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from public
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and 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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charging station operators, and the books and
records of the entity that supplied electricity
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sold
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as vehicle fuel
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used
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by the
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public
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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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charging station operators that sell
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or deliver
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electricity as vehicle fuel through a public
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or
retail
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charging station.
Sec. 16.
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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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. 17.
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REPEALER.
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Minnesota Statutes 2025 Supplement, section 296A.01, subdivision 19b,
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is repealed.
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APPENDIX
Repealed Minnesota Statutes: 26-07908
296A.01 DEFINITIONS.
Subd. 19b.
Electric vehicle supply equipment.
"Electric vehicle supply equipment" means any equipment used to deliver electricity sold as vehicle fuel to an electric vehicle.