SF 3853

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/27/2026 09:55 a.m.

A bill for an act
relating to transportation; modifying surcharges for all-electric vehicles and plug-in
hybrid electric vehicles; establishing vehicle weight surcharge; amending Minnesota
Statutes 2024, section 168.013, by adding a subdivision; Minnesota Statutes 2025
Supplement, section 168.013, subdivisions 1m, 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 $100 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.

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

Subd. 1n.

Plug-in hybrid electric vehicle.

(a) A surcharge deleted text begin as provided in paragraph (b)
or (c) deleted text end new text begin of $50 new text end 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.

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

deleted text begin (1) 0.25 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) $75 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) $50 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. 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 Vehicle weight surcharge. new text end

new text begin (a) A weight surcharge is imposed on a passenger
automobile, as defined in section 168.002, subdivision 24, calculated as follows:
new text end

new text begin (1) for a weight rating of less than 5,000 pounds, $0;
new text end

new text begin (2) for a weight rating of 5,000 to 5,999 pounds, seven percent of the tax imposed under
subdivision 1a; and
new text end

new text begin (3) for a weight rating of 6,000 pounds or more, ten percent of the tax imposed under
subdivision 1a.
new text end

new text begin (b) The surcharge is in addition to the tax under subdivision 1a. The commissioner must
determine the weight rating from the gross vehicle weight rating of the vehicle, as indicated
on the manufacturer's certification label.
new text end

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