HF 1817

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/05/2025 12:32 p.m.

A bill for an act
relating to transportation; amending certain requirements governing electric vehicle
surcharges, including to modify the surcharge on all-electric vehicles and impose
a surcharge on plug-in hybrid electric vehicles; providing for account transfers;
amending Minnesota Statutes 2024, sections 161.178, subdivision 8, by adding a
subdivision; 168.013, subdivision 1m, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 161.178, subdivision 8, is amended to read:

Subd. 8.

Transportation impact assessment and mitigation account.

(a) A
transportation impact assessment and mitigation account is established in the special revenue
fund. The account consists of funds provided new text begin under section 168.013, subdivisions 1m and
1n, and new text end by law and any other money donated, allotted, transferred, or otherwise provided
to the account.

(b) Money in the account is annually appropriated to the commissioner and must only
be expended on activities described or required under this section. In determining
expenditures from the account, the commissioner must include prioritization for offset
actions interlinked to trunk highway projects that reduce traffic fatalities or severe injuries.

Sec. 2.

Minnesota Statutes 2024, section 161.178, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Account transfers. new text end

new text begin (a) For purposes of this subdivision, "account balance"
means the unencumbered balance in the transportation impact assessment and mitigation
account under subdivision 8 on June 30 of a fiscal year.
new text end

new text begin (b) Beginning July 1, 2027, in each fiscal year, if the account balance for the previous
fiscal year exceeds 50 percent of the total deposited during that fiscal year, by November
1, the commissioner must transfer an amount as determined in paragraph (c) from the
transportation impact assessment and mitigation account to the highway user tax distribution
fund.
new text end

new text begin (c) The amount for transfer under paragraph (b) equals 90 percent of the lesser of (1)
the account balance for the previous fiscal year, or (2) the amount of unencumbered funds
in the transportation impact assessment and mitigation account at the time of transfer.
new text end

Sec. 3.

Minnesota Statutes 2024, section 168.013, subdivision 1m, is amended to read:

Subd. 1m.

deleted text begin Electric deleted text end new text begin All-electric new text end vehicle.

deleted text begin In addition to the tax under subdivision 1a, deleted text end new text begin (a)
Subject to paragraph (b), new text end a surcharge of deleted text begin $75 deleted text end new text begin $100 new text end is imposed for an all-electric vehicle, as
defined in section 169.011, subdivision 1a. new text begin The surcharge is in addition to the tax under
subdivision 1a.
new text end

new text begin (b) On January 15, 2028, and on January 15 every three years thereafter, if the gasoline
excise tax imposed under section 296A.07, subdivision 3, paragraph (a), clause (3), is
increased or decreased since the most recent adjustment as of the effective date of this
section or a prior adjustment under this paragraph, the surcharge as previously adjusted
under this paragraph must be increased or decreased by a corresponding percentage change,
and the resulting amount must be rounded to the nearest increment of $5. The adjusted
surcharge under this paragraph applies to taxes payable for a registration period starting on
or after the following February 1.
new text end

new text begin (c) new text end Notwithstanding subdivision 8, revenue deleted text begin from the fee imposed deleted text end under this subdivision
must be deposited in the deleted text begin highway user tax distribution fund deleted text end new text begin transportation impact assessment
and mitigation account under section 161.178, subdivision 8 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to taxes payable for a registration period starting on or after August 1, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 168.013, is amended by adding a subdivision to
read:

new text begin Subd. 1n. new text end

new text begin Plug-in hybrid electric vehicle. new text end

new text begin (a) Subject to paragraph (b), a surcharge of
$25 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.
new text end

new text begin (b) On January 15, 2028, and on January 15 every three years thereafter, if the gasoline
excise tax imposed under section 296A.07, subdivision 3, paragraph (a), clause (3), is
increased or decreased since the most recent adjustment as of the effective date of this
section or a prior adjustment under this paragraph, the surcharge as previously adjusted
under this paragraph must be increased or decreased by a corresponding percentage change,
and the resulting amount must be rounded to the nearest increment of $5. The adjusted
surcharge under this paragraph applies to taxes payable for a registration period starting on
or after the following February 1.
new text end

new text begin (c) Notwithstanding subdivision 8, revenue under this subdivision must be deposited in
the transportation impact assessment and mitigation account under section 161.178,
subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to taxes payable for a registration period starting on or after August 1, 2025.
new text end