SF 2092

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/08/2025 09:00 a.m.

A bill for an act
relating to transportation; imposing a kilowatt per hour tax for electric vehicle
charging; proposing coding for new law in Minnesota Statutes, chapter 296A.

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

Section 1.

new text begin [296A.075] ELECTRIC FUEL TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Charging station" means equipment by which electric fuel is transferred to the power
system of an electric vehicle and the real property the equipment is located on or affixed
to.
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new text begin (c) "Charging station operator" means any person or lawfully recognized business entity
that owns or operates a charging station in the state.
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new text begin (d) "Electric fuel" means electrical energy distributed into the battery or other energy
storage device of an electric vehicle to be used to power the electric vehicle.
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new text begin (e) "Electric utility" has the meaning given in section 216B.38, subdivision 5.
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new text begin (f) "Electric vehicle" has the meaning given in section 169.011, subdivision 26a.
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new text begin (g) "Legacy chargers" means charging stations in operation before October 1, 2023, that
do not have a metering system in place capable of measuring electric fuel transferred from
the charging station to the electric vehicle or are incapable of measuring the time elapsed
while actively charging an electric vehicle and placing a fee on the charging session.
new text end

new text begin (h) "Public charging station" means a location at which a charging station operator
conducts for-profit business using a metered system for the delivery of electric fuel to an
electric vehicle and charges the customer either for the electric fuel transferred to the power
system of the electric vehicle or for the duration of time during which electric fuel is
transferred to the power system of the electric vehicle.
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new text begin (i) "Residence" means the place where a person resides, permanently or temporarily.
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new text begin Subd. 2. new text end

new text begin Tax imposed on electric fuel. new text end

new text begin (a) On and after October 1, 2025, a tax of five
cents is imposed on each kilowatt hour of electric fuel delivered or placed into the battery
or other energy storage device of an electric vehicle at a public charging station.
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new text begin (b) The tax imposed under this subdivision must be remitted monthly by each charging
station operator to the commissioner of revenue for deposit no later than the 20th day of
the month following the month during which the electric charging for an electric vehicle
occurred. The tax must be remitted on a form prescribed by the commissioner of revenue.
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new text begin (c) The commissioner must deposit the proceeds from the tax imposed under this
subdivision in the highway user tax distribution fund under section 161.045.
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new text begin (d) The tax authorized under this subdivision is based on the rate of tax and electric fuel
transferred during the charging process but does not include any taxes under chapter 297A
or fees or charges associated with the method of payment for the charging service.
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new text begin (e) The tax imposed under this subdivision is not applicable to electric vehicles charged
at a private residence at which the owner or occupant of the residence uses electric power
paid for by the owner or occupant of the residence and that is supplied to the residence by
an electric utility.
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new text begin (f) The tax imposed under this subdivision is not applicable to electric vehicles charged
at charging stations with a charging capacity of less than 50 kilowatts and charging stations
that do not require payment for use.
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new text begin (g) Any public charging station that begins operations on or after October 1, 2025, must
use a metering system that can impose the cost for the charging service using a unit per
kilowatt hour.
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new text begin (h) Legacy chargers are exempt from the tax levied under this subdivision until January
1, 2032.
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