HF3189

Purpose of the Bill

This bill aims to impose a new tax on electric vehicle charging, specifically targeting the kilowatt hours of electric fuel delivered at public charging stations. The intention is to generate revenue for Minnesota's transportation infrastructure by tapping into the growing number of electric vehicles.

Main Provisions

• Electric Fuel Tax: A tax of five cents per kilowatt hour will be imposed on the electric fuel transferred to electric vehicles at public charging stations, effective October 1, 2025.
• Revenue Allocation: The tax revenue will be equally distributed between the highway user tax distribution fund and the transportation advancement account.
• Exemptions:
  • Electric vehicles charged at private residences using electricity paid for by the homeowner are exempt from this tax.
  • Charging stations with less than 50 kilowatts capacity and those not requiring a payment are also exempt.
  • Legacy chargers, which are older charging stations incapable of measuring electric fuel in kilowatt hours, are exempt from the tax until January 1, 2032.
• Metering Requirement: New public charging stations operating from October 1, 2025, must include systems capable of measuring and imposing charges per kilowatt hour.

Significant Changes to Existing Law

• Repeal of Existing Surcharge: The bill repeals a previous statute which imposed a fixed surcharge of $75 on all-electric vehicles. This shifts the focus from a flat surcharge on vehicle ownership to a usage-based tax on electric vehicle charging.

Relevant Terms

electric vehicle, kilowatt hour, electric fuel, public charging station, electric fuel tax, legacy chargers, highway user tax distribution fund, transportation advancement account, metering system, charge exemption.