Senate Bill to Increase Surcharges for Electric Vehicle Owners Progresses Through Committee

(KNSI) – A bill that would make the surcharge for electric vehicles equal to the average amount of gas taxes Minnesotans pay has had its first committee hearing at the Minnesota Capitol.

The Transportation Finance and Policy Committee took up the bill, authored by Republican State Senator Jeff Howe of Rockville, on Wednesday. Next, it will go to the Committee on Taxes.

If the bill becomes law, the surcharge for all-electric vehicles will increase from $75 to $229 to cover the same amount that non-electric vehicle owners pay on average for state gas tax, which EV owners are exempt from. If the gas tax increases or decreases, the EV surcharge will change with it. Plug-in hybrid vehicle owners would be subject to a $114.50 surcharge.

An amendment made in committee would also adjust the surcharges paid by EV and hybrid motorcycle owners.

Howe says that the additional fee for electric vehicle owners would help pay for roadway maintenance.

“Gas taxes run the risk of being regressive, but if EV owners contribute to this fund like every other car owner already does, we can avoid that situation altogether,” Howe said in a statement. “Electric vehicles are heavier than their gas counterparts, and as long as they’re benefiting from state roads, they should be paying to maintain them, too.”