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A bill for an act
relating to transportation; establishing weight-based motor vehicle registration
tax; repealing electric vehicle and plug-in hybrid electric vehicle surcharges;
amending Minnesota Statutes 2024, sections 168.013, subdivision 3; 169.86,
subdivision 5a; Minnesota Statutes 2025 Supplement, section 168.013, subdivision
1a; repealing Minnesota Statutes 2024, section 168.013, subdivision 23; 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 1a, is
amended to read:
Subd. 1a.
Passenger automobile; hearse.
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(a) On passenger automobiles as defined in
section
168.002, subdivision 24
, and hearses, except as otherwise provided, the registration
tax is calculated as $10 plus:
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(1) for a vehicle initially registered in Minnesota prior to November 16, 2020, 1.54
percent of the manufacturer's suggested retail price of the vehicle and the destination charge,
subject to the adjustments in paragraphs (e) and (f); or
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(2) for a vehicle initially registered in Minnesota on or after November 16, 2020, 1.575
percent of the manufacturer's suggested retail price of the vehicle, subject to the adjustments
in paragraphs (e) and (f).
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(b) The registration tax calculation must not include the cost of each accessory or item
of optional equipment separately added to the vehicle and the manufacturer's suggested
retail price. The registration tax calculation must not include a destination charge, except
for a vehicle previously registered in Minnesota prior to November 16, 2020.
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(c) The registrar must determine the manufacturer's suggested retail price:
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(1) using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry;
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(2) if a dealer does not determine the amount, using the retail price label as provided by
the manufacturer under United States Code, title 15, section 1232; or
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(3) if the retail price label is not available, using the actual sales price of the vehicle.
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If the registrar is unable to ascertain the manufacturer's suggested retail price of any registered
vehicle in the foregoing manner, the registrar may use any other available source or method.
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(d) The registrar must calculate the registration tax using information available to dealers
and deputy registrars at the time the initial application for registration is submitted.
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(e) The amount under paragraph (a), clauses (1) and (2), must be calculated based on a
percentage of the manufacturer's suggested retail price, as follows:
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(1) during the first year of vehicle life, upon 100 percent of the price;
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(2) for the second year, 95 percent of the price;
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(3) for the third year, 90 percent of the price;
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(4) for the fourth year, 80 percent of the price;
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(5) for the fifth year, 70 percent of the price;
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(6) for the sixth year, 60 percent of the price;
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(7) for the seventh year, 50 percent of the price;
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(8) for the eighth year, 40 percent of the price;
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(9) for the ninth year, 25 percent of the price; and
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(10) for the tenth year, ten percent of the price.
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(f) For the 11th and each succeeding year, the amount under paragraph (a), clauses (1)
and (2), must be calculated as $20.
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(g) Except as provided in subdivision 23, for any vehicle previously registered in
Minnesota and regardless of prior ownership, the total amount due under this subdivision
must not exceed the smallest total amount previously paid or due on the vehicle.
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(a) On passenger automobiles, as defined in section
168.002, subdivision 24
, and hearses,
except as otherwise provided, the registration tax is based on the total gross vehicle weight
rating graduated according to the following schedule:
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Weight Registration Schedule
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Gross Vehicle Weight
Rating
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Tax
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0
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-
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750
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$
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.......
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751
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-
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1,500
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.......
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1,501
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-
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3,000
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.......
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3,001
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-
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4,500
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.......
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4,501
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-
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6,000
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.......
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6,001
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-
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7,500
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.......
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7,501
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-
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9,000
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.......
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9,001
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-
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12,400
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.......
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12,401
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-
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15,800
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.......
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15,801
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-
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19,200
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.......
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19,201
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-
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22,600
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.......
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22,601
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-
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26,000
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.......
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(b) During the 11th and each succeeding year of the vehicle's life, the amount under
paragraph (a) must be calculated as $........
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(c) The registrar must determine the gross vehicle weight rating by inspecting the
manufacturer's safety compliance certification label located on the driver's side door jamb.
The registrar must calculate the registration tax using information available to dealers and
deputy registrars at the time the initial application for registration is submitted.
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Sec. 2.
Minnesota Statutes 2024, section 168.013, subdivision 3, is amended to read:
Subd. 3.
Application; cancellation; excessive gross weight forbidden.
(a)
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Except for
vehicles registered under subdivision 1a,
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the applicant for all licenses based on gross weight
shall state the unloaded weight of the motor vehicle, trailer, or semitrailer and the maximum
load the applicant proposes to carry on it, the sum of which constitutes the gross weight
upon which the license tax must be paid. However, the declared gross weight upon which
the tax is paid must not be less than 1-1/4 times the declared unloaded weight of the motor
vehicle, trailer, or semitrailer to be registered, except recreational vehicles taxed under
subdivision 1g, school buses taxed under subdivision 18, and tow trucks or towing vehicles
defined in section
168B.011, subdivision 12a
. The gross weight of a tow truck or towing
vehicle is the actual weight of the tow truck or towing vehicle fully equipped, but does not
include the weight of a wrecked or disabled vehicle towed or drawn by the tow truck or
towing vehicle.
(b) Except as provided by special permit issued under section
169.86
, the gross weight
of a motor vehicle, trailer, or semitrailer must not exceed the gross weight upon which the
license tax has been paid by more than four percent or 1,000 pounds, whichever is greater;
provided that, a vehicle transporting unfinished forest products on a highway, other than a
highway that is part of the system of interstate and defense highways, unless a federal
exemption is granted, in accordance with paragraph (d), clause (3):
(1) shall not exceed its gross vehicle weight upon which the license tax has been paid,
or gross axle weight on any axle, by more than five percent and, notwithstanding other law
to the contrary, is not subject to any fee, fine, or other assessment or penalty for exceeding
a gross vehicle or axle weight by up to five percent. This clause applies year round to
suppliers of unfinished forest products to mills; and
(2) is not subject to any provision of paragraph (d) or chapter 169 limiting the gross axle
weight of any individual axle unless the entire vehicle also exceeds its gross vehicle weight
plus its weight allowance allowed in clause (1) and plus any weight allowance permitted
under section
169.826
or
169.8261
, in which case the vehicle is subject to all applicable
penalties for excess weight violations.
(c) The gross weight of the motor vehicle, trailer, or semitrailer for which the license
tax is paid must be indicated by a distinctive character on the license plate or plates except
as provided in subdivision 12 or section
169.86, subdivision 5a
, as applicable, and the plate
or plates must be kept clean and clearly visible at all times.
(d) The owner, driver, or user of a motor vehicle, trailer, or semitrailer, upon conviction
for transporting a gross weight in excess of the gross weight for which it was registered or
for operating a vehicle with an axle weight exceeding the maximum lawful axle load weight,
is guilty of a misdemeanor and subject to increased registration or reregistration according
to the following schedule:
(1) Upon conviction for transporting a gross weight in excess of the gross weight for
which a motor vehicle, trailer, or semitrailer is registered by more than the allowance set
forth in paragraph (b) but less than 25 percent, or for operating or using a motor vehicle,
trailer, or semitrailer with an axle weight exceeding the maximum lawful axle load as
provided in sections
169.822
to
169.829
by more than the allowance set forth in paragraph
(b) but less than 25 percent, the owner, driver, or user of the motor vehicle, trailer, or
semitrailer used to commit the violation, in addition to any penalty imposed for the
misdemeanor, shall apply to the registrar to increase the authorized gross weight to be carried
on the vehicle to a weight equal to or greater than the gross weight the owner, driver, or
user was convicted of carrying. The increase is computed for the balance of the calendar
year on the basis of 1/12 of the annual tax for each month remaining in the calendar year
beginning with the first day of the month in which the violation occurred. If the additional
registration tax computed upon that weight, plus the tax already paid, amounts to more than
the regular tax for the maximum gross weight permitted for the vehicle under sections
169.822
to
169.829
, that additional amount must nevertheless be paid into the highway
fund, but the additional tax thus paid does not authorize or permit any person to operate the
vehicle with a gross weight in excess of the maximum legal weight as provided by sections
169.822
to
169.829
. Unless the owner within 30 days after a conviction applies to increase
the authorized weight and pays the additional tax as provided in this section, the registrar
shall revoke the registration on the vehicle and demand the return of the registration card
and plates issued on that registration.
(2) Upon conviction of an owner, driver, or user of a motor vehicle, trailer, or semitrailer
for transporting a gross weight in excess of the gross weight for which the motor vehicle,
trailer, or semitrailer was registered by 25 percent or more or for operating or using the
vehicle or trailer with an axle weight exceeding the maximum lawful axle load as provided
in sections
169.822
to
169.829
by 25 percent or more, and in addition to any penalty imposed
for the misdemeanor, the registrar shall either (i) cancel the reciprocity privileges on the
vehicle involved if the vehicle is being operated under reciprocity or (ii) if the vehicle is
not being operated under reciprocity, cancel the certificate of registration on the vehicle
operated and demand the return of the registration certificate and registration plates. The
registrar may not cancel the registration or reciprocity privileges for any vehicle found in
violation of seasonal load restrictions imposed under section
169.87
unless the axle weight
exceeds the year-round weight limit for the highway on which the violation occurred. The
registrar may investigate any allegation of gross weight violations and demand that the
operator show cause why all future operating privileges in the state should not be revoked
unless the additional tax assessed is paid.
(3) Clause (1) does not apply to the first haul of unprocessed or raw farm products or
unfinished forest products, when the registered gross weight is not exceeded by more than
ten percent. For purposes of this clause, "first haul" means (i) the first, continuous
transportation of unprocessed or raw farm products from the place of production or on-farm
storage site to any other location within 100 miles of the place of production or on-farm
storage site, or (ii) the continuous or noncontinuous transportation of unfinished forest
products from the place of production to the place of final processing or manufacture located
within 200 miles of the place of production.
(4) When the registration on a motor vehicle, trailer, or semitrailer is revoked by the
registrar according to this section, the vehicle must not be operated on the highways of the
state until it is registered or reregistered, as the case may be, and new plates issued, and the
registration fee is the annual tax for the total gross weight of the vehicle at the time of
violation. The reregistration pursuant to this subdivision of any vehicle operating under
reciprocity agreements pursuant to section
168.181
or
168.187
must be at the full annual
registration fee without regard to the percentage of vehicle miles traveled in this state.
Sec. 3.
Minnesota Statutes 2024, section 169.86, subdivision 5a, is amended to read:
Subd. 5a.
Additional tax for excessive gross weight.
When a special permit is issued
under this chapter, the commissioner shall collect in addition to the permit fee an additional
tax for excessive gross weight, if the weight allowed under the permit is greater than the
gross weight for which the vehicle is registered under section
168.013
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, subdivision 1e
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. The
tax shall be calculated as the difference between the registration tax paid under section
168.013, subdivision 1e
, and the additional tax that would be due under section
168.013
,
subdivision 1e, at the gross weight allowed under the permit, prorated by the number of
days for which the permit is effective. Proceeds of the surcharge must be deposited in the
state treasury and credited to the highway user tax distribution fund.
Sec. 4.
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REPEALER.
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(a)
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Minnesota Statutes 2024, section 168.013, subdivision 23,
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is repealed.
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(b)
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Minnesota Statutes 2025 Supplement, section 168.013, subdivisions 1m and 1n,
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are
repealed.
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Sec. 5.
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EFFECTIVE DATE.
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This act 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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APPENDIX
Repealed Minnesota Statutes: 26-08555
168.013 VEHICLE REGISTRATION TAXES.
Subd. 1m.
Electric vehicle.
(a) A surcharge as provided in paragraph (b) or (c) 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.
(b) The surcharge is calculated as the greater of the minimum amount specified in paragraph (c) or:
(1) 0.5 percent of the manufacturer's suggested retail price, as determined under subdivision 1a, paragraph (c); multiplied by
(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.
(c) The minimum amount is:
(1) $150 for a registration period beginning on or after January 1, 2026, and on or before June 30, 2027; or
(2) $100 for a registration period beginning on or after July 1, 2027.
(d) Notwithstanding subdivision 8, revenue collected under this subdivision must be deposited in the highway user tax distribution fund.
Subd. 1n.
Plug-in hybrid electric vehicle.
(a) A surcharge as provided in paragraph (b) or (c) 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.
(b) The surcharge is calculated as the greater of the minimum amount specified under paragraph (c) or:
(1) 0.25 percent of the manufacturer's suggested retail price, as determined under subdivision 1a, paragraph (c); multiplied by
(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.
(c) The minimum amount is:
(1) $75 for a registration period beginning on or after January 1, 2026, and on or before June 30, 2027; or
(2) $50 for a registration period beginning on or after July 1, 2027.
(d) Notwithstanding subdivision 8, revenue collected under this subdivision must be deposited in the highway user tax distribution fund.
Subd. 23.
Adjustments to registration tax.
(a) Except as provided in this subdivision, the commissioner must not adjust the manufacturer's suggested retail price or destination charge for any vehicle in a subsequent registration period following initial registration in Minnesota.
(b) The commissioner must adjust the registration tax amount of any vehicle to correct an error or omission that was made in determining or entering the registration tax amount or the destination charge amount. For a vehicle with a registration tax determined based on the actual sales price, the commissioner must adjust the registration tax within two years of the initial registration using one of the methods described in subdivision 1a, paragraph (c), clauses (1) to (2). The adjusted registration tax amount is effective starting with the vehicle's next registration period. The commissioner must not collect any amount that would have been paid but for the error or omission.
(c) When the commissioner makes an adjustment to the registration tax amount pursuant to this subdivision, the commissioner must mail written notice to the owner of the vehicle stating that an adjustment was made to the registration tax amount, the reason for the adjustment, and contact information so that the owner may contact the department to ask questions.