SF 2688

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/14/2025 10:09 a.m.

A bill for an act
relating to motor vehicles; modifying the surcharge on all-electric vehicles;
imposing surcharges on plug-in hybrid electric vehicles, electric motorcycles, and
plug-in hybrid electric motorcycles; defining types of electric motorcycles; requiring
surcharge rate adjustments; amending Minnesota Statutes 2024, sections 168.013,
subdivision 1m, by adding subdivisions; 169.011, by adding subdivisions.

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

Section 1.

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

Subd. 1m.

Electric 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 $200 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) By October 1 annually, the commissioner must calculate and publish an adjusted
surcharge under this subdivision, which applies to taxes payable for a registration period
starting on or after the following January 1. Each adjusted surcharge must:
new text end

new text begin (1) equal:
new text end

new text begin (i) the surcharge under paragraph (a) as previously adjusted under this paragraph;
multiplied by
new text end

new text begin (ii) one plus the percentage increase, if any, in the gasoline excise tax rate under section
296A.07, subdivision 3, as determined from the rate in effect at the time of calculation
compared to the rate to be imposed on the following January 1; and
new text end

new text begin (2) be rounded to the nearest whole dollar.
new text end

new text begin (c) new text end Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision
must be deposited in the highway user tax distribution fund.

Sec. 2.

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
$100 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) By October 1 annually, the commissioner must calculate and publish an adjusted
surcharge under this subdivision, which applies to taxes payable for a registration period
starting on or after the following January 1. Each adjusted surcharge must:
new text end

new text begin (1) equal:
new text end

new text begin (i) the surcharge under paragraph (a) as previously adjusted under this paragraph;
multiplied by
new text end

new text begin (ii) one plus the percentage increase, if any, in the gasoline excise tax rate under section
296A.07, subdivision 3, as determined from the rate in effect at the time of calculation
compared to the rate to be imposed on the following January 1; and
new text end

new text begin (2) be rounded to the nearest whole dollar.
new text end

new text begin (c) Notwithstanding subdivision 8, revenue from the surcharge imposed under this
subdivision must be deposited in the highway user tax distribution fund.
new text end

Sec. 3.

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

new text begin Subd. 1o. new text end

new text begin All-electric motorcycle. new text end

new text begin (a) Subject to paragraph (b), a surcharge of $40 is
imposed for an all-electric motorcycle as defined in section 169.011, subdivision 1b. The
surcharge is in addition to the tax under subdivision 1b.
new text end

new text begin (b) By October 1 annually, the commissioner must calculate and publish an adjusted
surcharge under this subdivision, which applies to taxes payable for a registration period
starting on or after the following January 1. Each adjusted surcharge must:
new text end

new text begin (1) equal:
new text end

new text begin (i) the surcharge under paragraph (a) as previously adjusted under this paragraph;
multiplied by
new text end

new text begin (ii) one plus the percentage increase, if any, in the gasoline excise tax rate under section
296A.07, subdivision 3, as determined from the rate in effect at the time of calculation
compared to the rate to be imposed on the following January 1; and
new text end

new text begin (2) be rounded to the nearest whole dollar.
new text end

new text begin (c) Notwithstanding subdivision 8, revenue from the surcharge imposed under this
subdivision must be deposited in the highway user tax distribution fund.
new text end

Sec. 4.

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

new text begin Subd. 1p. new text end

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

new text begin (a) Subject to paragraph (b), a surcharge
of $20 is imposed for a plug-in hybrid electric motorcycle as defined in section 169.011,
subdivision 54c. The surcharge is in addition to the tax under subdivision 1b.
new text end

new text begin (b) By October 1 annually, the commissioner must calculate and publish an adjusted
surcharge under this subdivision, which applies to taxes payable for a registration period
starting on or after the following January 1. Each adjusted surcharge must:
new text end

new text begin (1) equal:
new text end

new text begin (i) the surcharge under paragraph (a) as previously adjusted under this paragraph;
multiplied by
new text end

new text begin (ii) one plus the percentage increase, if any, in the gasoline excise tax rate under section
296A.07, subdivision 3, as determined from the rate in effect at the time of calculation
compared to the rate to be imposed on the following January 1; and
new text end

new text begin (2) be rounded to the nearest whole dollar.
new text end

new text begin (c) Notwithstanding subdivision 8, revenue from the surcharge imposed under this
subdivision must be deposited in the highway user tax distribution fund.
new text end

Sec. 5.

Minnesota Statutes 2024, section 169.011, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin All-electric motorcycle. new text end

new text begin (a) "All-electric motorcycle" means an electric
motorcycle that is solely able to be powered by an electric motor drawing current from
rechargeable storage batteries, fuel cells, or other portable sources of electrical current.
new text end

new text begin (b) All-electric motorcycle excludes a plug-in hybrid electric motorcycle.
new text end

Sec. 6.

Minnesota Statutes 2024, section 169.011, is amended by adding a subdivision to
read:

new text begin Subd. 54c. new text end

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

new text begin "Plug-in hybrid electric motorcycle"
means an electric motorcycle that:
new text end

new text begin (1) contains an internal combustion engine and also allows power to be delivered to the
drive wheels by a battery-powered electric motor;
new text end

new text begin (2) when connected to the electrical grid via an electrical outlet, is able to recharge its
battery; and
new text end

new text begin (3) has the ability to travel at least 20 miles powered substantially by electricity.
new text end

Sec. 7. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes must renumber the subdivisions in Minnesota Statutes, section
169.011, so that the definitions appear in alphabetical order. The revisor must make necessary
cross-reference changes in Minnesota Statutes consistent with the renumbering.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective August 1, 2025.
new text end