SF2092

SF2092 (Legislative Session 94 (2025-2026))

Kilowatt per hour tax enactment for electric vehicle charging

AI Generated Summary

This bill proposes a new tax on electric vehicle (EV) charging in Minnesota. Key points include:

Tax Implementation: Beginning October 1, 2025, a tax of $0.05 per kilowatt-hour (kWh) will be imposed on electric fuel delivered at public charging stations.
Exemptions:
- Private residence charging (paid by the owner or occupant) is exempt from the tax.
- Low-capacity charging stations (under 50 kW) and free charging stations are also exempt.
- "Legacy chargers" (existing before October 1, 2023, without metering systems) are exempt until January 1, 2032.
Tax Collection & Allocation:
- Collected by charging station operators and remitted monthly to the Minnesota Department of Revenue.
- Revenue is split evenly: 50% to the Highway User Tax Distribution Fund and 50% to the Transportation Advancement Account.
Repeal of Existing EV Surcharge: The bill repeals the current $75 annual EV registration surcharge under Minnesota Statutes 168.013, subdivision 1m.

This legislation aims to generate transportation funding by taxing EV charging at public stations, replacing the flat registration fee previously imposed on EV owners.

Bill text versions

Introduction PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 02, 2025	Senate	Floor	Action	Introduction and first reading
March 02, 2025	Senate	Floor	Action	Referred to	Transportation
March 31, 2025	Senate	Floor	Action	Comm report: Amended, No recommendation, re-referred to	Taxes
March 31, 2025	Senate	Floor	Action	Author added
April 06, 2025	Senate	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill uses the definition of 'electric utility' as established in section 216B.38 subdivision 5.",
      "modified": []
    },
    "citation": "216B.38 subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the definition of 'electric vehicle' specified in section 169.011 subdivision 26a.",
      "modified": []
    },
    "citation": "169.011 subdivision 26a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill specifies that 50% of the proceeds from the electric fuel tax are to be deposited in the highway user tax distribution fund as outlined in section 161.045.",
      "modified": []
    },
    "citation": "161.045"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill indicates that 50% of the proceeds from the new electric fuel tax are to be directed to the transportation advancement account under section 174.49.",
      "modified": []
    },
    "citation": "174.49"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "The bill repeals a surcharge of $75 imposed on all-electric vehicles, as defined in section 169.011 subdivision 1a."
      ],
      "summary": "The repeal of the surcharge on all-electric vehicles under section 168.013 subdivision 1m is stated in the bill.",
      "modified": []
    },
    "citation": "168.013 subdivision 1m"
  }
]