HF 5138

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/13/2026 03:16 p.m.

A bill for an act
relating to transportation; modifying surcharges for all-electric vehicles and plug-in
hybrid electric vehicles; amending Minnesota Statutes 2025 Supplement, section
168.013, subdivision 1m; repealing Minnesota Statutes 2025 Supplement, section
168.013, subdivision 1n.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1m, is
amended to read:

Subd. 1m.

Electric vehicle.

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

deleted text begin (b) The surcharge is calculated as the greater of the minimum amount specified in
paragraph (c) or:
deleted text end

deleted text begin (1) 0.5 percent of the manufacturer's suggested retail price, as determined under
subdivision 1a, paragraph (c); multiplied by
deleted text end

deleted text begin (2) the percentage specified under subdivision 1a, paragraph (e), clauses (1) to (10), for
the vehicle's year of life, or ten percent for a vehicle in its 11th and each succeeding year
of life.
deleted text end

deleted text begin (c) The minimum amount is:
deleted text end

deleted text begin (1) $150 for a registration period beginning on or after January 1, 2026, and on or before
June 30, 2027; or
deleted text end

deleted text begin (2) $100 for a registration period beginning on or after July 1, 2027.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding subdivision 8, revenue collected under this subdivision must be
deposited in the highway user tax distribution fund.

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 January 1, 2027.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2025 Supplement, section 168.013, subdivision 1n, new text end new text begin is repealed.
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 January 1, 2027.
new text end

APPENDIX

Repealed Minnesota Statutes: 26-08598

168.013 VEHICLE REGISTRATION TAXES.

Subd. 1n.

Plug-in hybrid electric vehicle.

(a) A surcharge as provided in paragraph (b) or (c) 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.

(b) The surcharge is calculated as the greater of the minimum amount specified under paragraph (c) or:

(1) 0.25 percent of the manufacturer's suggested retail price, as determined under subdivision 1a, paragraph (c); multiplied by

(2) the percentage specified under subdivision 1a, paragraph (e), clauses (1) to (10), for the vehicle's year of life, or ten percent for a vehicle in its 11th and each succeeding year of life.

(c) The minimum amount is:

(1) $75 for a registration period beginning on or after January 1, 2026, and on or before June 30, 2027; or

(2) $50 for a registration period beginning on or after July 1, 2027.

(d) Notwithstanding subdivision 8, revenue collected under this subdivision must be deposited in the highway user tax distribution fund.