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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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