SF 1480 Minnesota Senate · 2025-2026 Regular Session

Road usage charge enactment for all-electric vehicles

SF 1480 would require all-electric vehicle owners in Minnesota to pay a new road usage charge based on miles driven within the state, in addition to existing registration fees. The charge is calculated using a formula comparing Minnesota's gasoline tax rates to the vehicle's "analogous fuel economy" (using EPA data for similar vehicles), with a base rate of $0.065 per mile. This applies to all-electric vehicles registered for periods starting before June 30, 2026, and creates a new system managed by the state with account providers handling billing. The revenue must be deposited into the highway user tax fund, replacing the previous $75 electric vehicle surcharge. The bill also mandates a report on the program's implementation.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 17, 2025 Last action Mar 2, 2026
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What changed between versions

Introduction 1st Engrossment · 3 edits · Apr 1, 2025
MINOR
The bill was updated from its introduction to its first engrossment, reflecting a new legislative session date and significant changes to how revenue is handled. The most critical change is that all revenue collected from the new road usage charge for all-electric vehicles must now be deposited into the Highway User Tax Distribution Fund, whereas the original draft proposed splitting the funds between two accounts. Additionally, the commissioner's reporting requirements were updated to include monitoring the revenue deposited in this specific fund.
FISCAL

The allocation of revenue was changed to require all proceeds from the all-electric vehicle road usage charge to be deposited entirely into the Highway User Tax Distribution Fund, removing the previous plan to split funds between the driver and vehicle services operating account and the Highway User Tax Distribution Fund.

REQUIREMENT

The commissioner's annual financial review requirements were updated to explicitly include monitoring the revenue collected and deposited in the Highway User Tax Distribution Fund.

TIMELINE

The legislative session dates were updated from the 2025 introduction to the 2026 first engrossment, and the bill's posting date was changed from March 2025 to March 2026.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
4
Key actions
0
Committee
2
Apr 1, 2025
Committee
Comm report: Amended, No recommendation, re-referred to Taxes
upper
Feb 17, 2025
Committee
Referred to Transportation
upper
Feb 17, 2025
Introduced
Introduction and first reading
upper
1 primary · 1 co-sponsor

Sponsors