Requirements governing electric vehicle surcharges and electricity as vehicle fuel taxes modified, taxes imposed, and tax credit established.

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.