SF 1880

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/09/2021 09:31am

A bill for an act
relating to transportation; imposing a road usage charge; requiring a report;
appropriating money; amending Minnesota Statutes 2020, sections 13.6905, by
adding a subdivision; 168.002, by adding a subdivision; 168.013, subdivision 1a;
proposing coding for new law in Minnesota Statutes, chapter 168; repealing
Minnesota Statutes 2020, section 168.013, subdivision 1m.

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

Section 1.

Minnesota Statutes 2020, section 13.6905, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Road usage charge data. new text end

new text begin Data related to road usage charges are governed
by section 168.0135.
new text end

Sec. 2.

Minnesota Statutes 2020, section 168.002, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin All-electric vehicle. new text end

new text begin "All-electric vehicle" has the meaning given in section
169.011, subdivision 1a.
new text end

Sec. 3.

Minnesota Statutes 2020, section 168.013, subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the registration
tax is calculated as $10 plus:

(1) for a vehicle initially registered in Minnesota prior to November 16, 2020, 1.25
percent of the manufacturer's suggested retail price of the vehicle and the destination charge,
subject to the adjustments in paragraphs (f) and (g); or

(2) for a vehicle initially registered in Minnesota on or after November 16, 2020, 1.285
percent of the manufacturer's suggested retail price of the vehicle, subject to the adjustments
in paragraphs (f) and (g).

(b) The registration tax calculation must not include the cost of each accessory or item
of optional equipment separately added to the vehicle and the manufacturer's suggested
retail price. The registration tax calculation must not include a destination charge, except
for a vehicle previously registered in Minnesota prior to November 16, 2020.

(c) In the case of the first registration of a new vehicle sold or leased by a licensed dealer,
the dealer may elect to individually determine the registration tax on the vehicle using
manufacturer's suggested retail price information provided by the manufacturer. The registrar
must use the manufacturer's suggested retail price determined by the dealer as provided in
paragraph (d). A dealer that elects to make the determination must retain a copy of the
manufacturer's suggested retail price label or other supporting documentation with the
vehicle transaction records maintained under Minnesota Rules, part 7400.5200.

(d) The registrar must determine the manufacturer's suggested retail price:

(1) using list price information published by the manufacturer or any nationally
recognized firm or association compiling such data for the automotive industry;

(2) if the list price information is unavailable, using the amount determined by a licensed
dealer under paragraph (c);

(3) if a dealer does not determine the amount, using the retail price label as provided by
the manufacturer under United States Code, title 15, section 1232; or

(4) if the retail price label is not available, using the actual sales price of the vehicle.

If the registrar is unable to ascertain the manufacturer's suggested retail price of any registered
vehicle in the foregoing manner, the registrar may use any other available source or method.

(e) The registrar must calculate the registration tax using information available to dealers
and deputy registrars at the time the initial application for registration is submitted.

(f) The amount under paragraph (a), clauses (1) and (2), must be calculated based on a
percentage of the manufacturer's suggested retail price, as follows: during the first year of
vehicle life, upon 100 percent of the price; for the second year, 90 percent of the price; for
the third year, 80 percent of the price; for the fourth year, 70 percent of the price; for the
fifth year, 60 percent of the price; for the sixth year, 50 percent of the price; for the seventh
year, 40 percent of the price; for the eighth year, 30 percent of the price; for the ninth year,
20 percent of the price; and for the tenth year, ten percent of the price.

(g) For the 11th and each succeeding year, the amount under paragraph (a), clauses (1)
and (2), must be calculated as $25.

(h) Except as provided in subdivision 23, for any vehicle previously registered in
Minnesota and regardless of prior ownership, the total amount due under this subdivision
and deleted text begin subdivision 1m deleted text end new text begin section 168.0135 new text end must not exceed the smallest total amount previously
paid or due on the vehicle.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022, and applies to a registration
period starting on or after that date.
new text end

Sec. 4.

new text begin [168.0135] ROAD USAGE CHARGE.
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.
new text end

new text begin (b) "Account provider" means a person, firm, corporation, or partnership of firms or
corporations that performs road usage charge management for enrolled vehicle owners and
usage charge calculation under an agreement with the commissioner.
new text end

new text begin (c) "Adjustment rate" means $0.06.
new text end

new text begin (d) "Analogous fuel economy" means an amount of distance traveled by a motor vehicle
as it relates to fuel consumed by the vehicle, in miles per gallon, that applies for a specific
vehicle classification and model year.
new text end

new text begin Subd. 2. new text end

new text begin Usage charge. new text end

new text begin (a) The owner of an all-electric vehicle must pay a road usage
charge. The usage charge is in addition to the tax under section 168.013, subdivision 1a.
The commissioner must impose the usage charge continuously for each registration period,
using the relevant calculation under paragraphs (b), (c), or both.
new text end

new text begin (b) For a billing period in which account management is active for a vehicle, the usage
charge is calculated as:
new text end

new text begin (1) the miles traveled by the vehicle within Minnesota over the billing period; multiplied
by
new text end

new text begin (2) the total excise tax rate for gasoline under sections 296A.07 and 296A.083, divided
by the analogous fuel economy, as determined in subdivision 3.
new text end

new text begin (c) For a billing period in which paragraph (b) does not apply, the usage charge is
calculated as:
new text end

new text begin (1) the estimated average daily vehicle miles traveled per vehicle in Minnesota, multiplied
by the number of days in the billing period; multiplied by
new text end

new text begin (2) the total excise tax rate for gasoline under sections 296A.07 and 296A.083, divided
by the analogous fuel economy, as determined in subdivision 3; plus
new text end

new text begin (3) the adjustment rate, multiplied by the number of days in the billing period.
new text end

new text begin (d) The total road usage charge to an enrolled vehicle owner calculated in paragraph (b)
for an entire vehicle registration period must not exceed the total that would otherwise apply
under a corresponding calculation in paragraph (c).
new text end

new text begin (e) The commissioner must estimate vehicle miles traveled under paragraph (c), clause
(1), in consultation with the commissioner of transportation, using the most recently available
year of data.
new text end

new text begin Subd. 3. new text end

new text begin Analogous fuel economy. new text end

new text begin In consultation with the commissioner of
transportation, the commissioner must determine analogous fuel economy that applies to
each vehicle under this section. The determination must be based on federal data on
automotive trends maintained by the United States Environmental Protection Agency by
identifying:
new text end

new text begin (1) the vehicle classification that applies to the vehicle, from among the following types
or successor types as specified by the Environmental Protection Agency: sedan/wagon, car
sport utility vehicle, truck sport utility vehicle, minivan/van, or pickup; and
new text end

new text begin (2) for the vehicle classification, the final estimated real-world fuel economy, in miles
per gallon, for the model year matching the vehicle that is subject to the usage charge. To
the extent feasible, the estimate under this clause must exclude all-electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Implementation surcharge. new text end

new text begin (a) In addition to the road usage charge, the
commissioner must establish and impose an implementation surcharge. The surcharge must
be set so that:
new text end

new text begin (1) the resulting annual total revenue from the surcharge does not exceed the annual
total amount retained by or paid to account providers;
new text end

new text begin (2) it does not exceed $....... annually per vehicle that is subject to the road usage charge;
and
new text end

new text begin (3) it is uniform for all vehicles.
new text end

new text begin (b) The commissioner may adjust the implementation surcharge on an annual or less
frequent basis.
new text end

new text begin Subd. 5. new text end

new text begin Road usage charge management agreement. new text end

new text begin The commissioner must enter
into an agreement with one or more account providers to perform road usage charge
management. The agreement must include specification of:
new text end

new text begin (1) account provider responsibility to enroll vehicle owners in usage charge management;
new text end

new text begin (2) road usage charge calculation and verification;
new text end

new text begin (3) designated responsibility for road usage charge billing, collections, and remittance,
which may be performed by the commissioner, the account provider, or a combination of
both;
new text end

new text begin (4) policies to determine whether road usage charge management is active for a vehicle;
new text end

new text begin (5) policies on prepayment, account balance minimum, and balance replenishment;
new text end

new text begin (6) audit activity, which must include providing for revising prior usage charges based
on submitted odometer information;
new text end

new text begin (7) account provider responsibility for customer service;
new text end

new text begin (8) road usage charge information that is available to each enrolled vehicle owner, which
must include vehicle miles traveled over each billing period and an overview of usage charge
calculation;
new text end

new text begin (9) requirements governing terms and conditions for enrolled vehicle owners; and
new text end

new text begin (10) standards for data security.
new text end

new text begin Subd. 6. new text end

new text begin Account providers; implementation capability. new text end

new text begin (a) An account provider must
be capable of accurately identifying miles traveled by the vehicle within Minnesota, whether
through a device that is affixed to the vehicle and transmits geolocation information or from
data supplied by a vehicle manufacturer.
new text end

new text begin (b) An account provider must have a reasonable capacity to implement, in the future,
identification of vehicle miles traveled during specific times of day, over specific road
segments, within managed lanes, and in a combination of these situations.
new text end

new text begin Subd. 7. new text end

new text begin Account providers; data practices. new text end

new text begin (a) An account provider must share with
the commissioner the following data on an enrolled vehicle owner:
new text end

new text begin (1) data on the vehicle owner and the vehicle sufficient to identify the appropriate
matching records in the driver and vehicle services information systems;
new text end

new text begin (2) the billing period; and
new text end

new text begin (3) the calculated usage charge amount.
new text end

new text begin (b) An account provider must submit the data listed in paragraph (a) electronically, in
the manner and by the date specified by the commissioner.
new text end

new text begin (c) An account provider may not share with the commissioner, and the commissioner
may not otherwise obtain from an account provider, geolocation data for a specifically
identifiable vehicle.
new text end

new text begin (d) An account provider may not share or disseminate data on an enrolled vehicle owner
with an entity other than the commissioner, except pursuant to a court order.
new text end

new text begin (e) Nothing in this subdivision prevents an account provider from sharing or disseminating
summary data, as defined in section 13.02, subdivision 19.
new text end

new text begin (f) Services provided by an account provider under this section are not a government
function for purposes of section 13.05, subdivision 11.
new text end

new text begin (g) An account provider's agreement with the commissioner is subject to section 13.05,
subdivision 6.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of revenue; appropriation. new text end

new text begin (a) Notwithstanding section 168.013,
subdivision 8, revenue collected by the commissioner under this section must be deposited
as follows:
new text end

new text begin (1) the amount collected from the implementation surcharge under subdivision 4, in the
vehicle services operating account; and
new text end

new text begin (2) the remainder in the highway user tax distribution fund.
new text end

new text begin (b) The amount deposited in the vehicle services operating account under this section
is annually appropriated to the commissioner for payments to account providers and
administrative costs incurred by the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin Legislative report. new text end

new text begin (a) By November 15 annually, the commissioner must
submit a report to the chairs, ranking minority members, and staff of the legislative
committees with jurisdiction over transportation policy and finance concerning the road
usage charge. At a minimum, the report must:
new text end

new text begin (1) provide an implementation overview, including enrollment activity and vehicle miles
traveled;
new text end

new text begin (2) summarize the agreement with each account provider, including information on each
of the specification areas identified under subdivision 5;
new text end

new text begin (3) review road usage charge finances, including total annual collections, implementation
surcharge rate and annual collections, analogous fuel economy amounts, and average daily
vehicle miles traveled estimates; and
new text end

new text begin (4) make recommendations, if any, on legislative changes to road usage charge
requirements.
new text end

new text begin (b) This subdivision expires June 30, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022, and applies to a registration
period starting on or after that date.
new text end

Sec. 5. new text begin ROAD USAGE CHARGE; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2022 is appropriated from the vehicle services operating account in
the special revenue fund to the commissioner of public safety for administrative costs to
implement the road usage charge under Minnesota Statutes, section 168.0135. This is a
onetime appropriation and is available until June 30, 2023.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 168.013, subdivision 1m, 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 July 1, 2022.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-01831

168.013 VEHICLE REGISTRATION TAXES.

Subd. 1m.

Electric vehicle.

In addition to the tax under subdivision 1a, a surcharge of $75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a. Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must be deposited in the highway user tax distribution fund.