This bill modifies the surcharges for all-electric vehicles and plug-in hybrid electric vehicles in Minnesota. For all-electric vehicles, a fixed surcharge of $100 is established, replacing the previous calculation method based on a percentage of the manufacturer's suggested retail price. Similarly, for plug-in hybrid electric vehicles, a fixed surcharge of $50 is introduced, also replacing the previous calculation method. Both surcharges are in addition to existing taxes and will be deposited into the highway user tax distribution fund. The effective date for these changes is set for taxes payable starting January 1, 2027.

Additionally, the bill introduces a new vehicle weight surcharge for passenger automobiles based on their weight ratings. Vehicles weighing less than 5,000 pounds will incur no surcharge, while those weighing between 5,000 and 5,999 pounds will face a surcharge of seven percent of the tax imposed under subdivision 1a, and vehicles weighing 6,000 pounds or more will incur a ten percent surcharge. This weight surcharge is also in addition to the existing tax and will be deposited into the highway user tax distribution fund, with the same effective date of January 1, 2027.

Statutes affected:
Introduction: 168.013