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HF 189

Surcharge on all-electric vehicles amended; surcharges on plug-in hybrid electric vehicles, electric motorcycles, and plug-in hybrid electric motorcycles imposed; types of electric motorcycles defined; and surcharge rate adjustment required.

2025-2026 Regular Session Introduced by Dawn Gillman and 3 co-sponsors

HF 189 would broaden and adjust Minnesota vehicle surcharges by adding charges for plug-in hybrids, electric motorcycles, and related types, with a rate‑adjustment mechanism.

Introduction and first reading, referred to Transportation Finance and Policy
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WeVote Research Nonpartisan
Bill Summary · HF 189

Summary of HF 189 (2025-2026) — Minnesota

Basic information

  • Bill: HF 189
  • Session: 2025-2026
  • Jurisdiction: Minnesota
  • Introduced / First Reading: February 10, 2025
  • Committee: Transportation Finance and Policy (referred upon introduction)
  • Sponsors:
    • Primary: (not listed)
    • Co-sponsors: Natalie Zeleznikar, Krista Knudsen, Roger Skraba, Dawn Gillman

Purpose and intent

HF 189 proposes changes to the state surcharge regime for electric-vehicle (EV) and related modes of transportation. The bill aims to:
- Amend the existing surcharge on all-electric vehicles (EVs).
- Impose surcharges on plug-in hybrid electric vehicles (PHEVs), electric motorcycles, and plug-in hybrid electric motorcycles.
- Define the types of electric motorcycles covered by the surcharge.
- Require an adjustment mechanism for the surcharge rate.

Overall, the bill intends to broaden and adjust the financial charges associated with electric propulsion vehicles, aligning surcharges with specific vehicle types and updating the rate over time.

Key provisions and changes (as described in the bill title and action history)

  • Surcharge on all-electric vehicles (EVs): The bill modifies the existing surcharge structure applied to all-electric vehicles. This could involve changing rate amounts, calculation methods, or applicability thresholds.
  • New surcharges on additional vehicle types:
    • Plug-in hybrid electric vehicles (PHEVs): Introduction or adjustment of surcharges for PHEVs.
    • Electric motorcycles: Implementation of a surcharge specific to electric motorcycles.
    • Plug-in hybrid electric motorcycles: Implementation of a surcharge specific to plug-in hybrid electric motorcycles.
  • Definitions: The bill defines “electric motorcycles” and related categories to clarify which vehicles are subject to the surcharges.
  • Surcharge rate adjustment required: Establishes a mechanism to adjust surcharge rates, potentially based on factors such as:
    • Inflation or consumer price indices
    • Vehicle type, weight, or usage
    • Revenue needs for transportation funding or road maintenance
    • Legislative or administrative review timelines

Who and what is affected

  • Vehicle owners and operators of:
    • All-electric vehicles (EVs)
    • Plug-in hybrid electric vehicles (PHEVs)
    • Electric motorcycles
    • Plug-in hybrid electric motorcycles
  • State revenue and transportation funding programs that rely on vehicle surcharges as a funding source for transportation infrastructure, road maintenance, or related programs.
  • Regulators and administrators responsible for implementing, collecting, and adjusting surcharges, including any formula or rate-setting processes.

Procedural and timeline aspects

  • Introduction and referral: The bill was introduced and referred to the Transportation Finance and Policy committee on February 10, 2025.
  • Rate adjustment mechanism: The bill requires establishment of an ongoing process to adjust surcharge rates. Details on timing (e.g., annual, biennial) and methodology would be specified in the bill’s text or subsequent committee amendments.
  • Next steps (typical process):
    • The committee would review technical against fiscal notes, hold hearings, and consider amendments.
    • If advanced, the bill would move to the floor of the Minnesota House for debate and potential passage.
    • If approved by one chamber, it would proceed to the other chamber and follow similar steps toward enactment.

Potential impacts to consider

  • Financial impact on vehicle owners: Increased or redistributed surcharges across EVs, PHEVs, and electric motorcycles may affect total ownership costs.
  • Funding for transportation: Greater or more targeted surcharge revenue could bolster funding for road maintenance, transit projects, or other transportation programs.
  • Market effects: Surcharge changes could influence consumer decisions on vehicle purchases, particularly for PHEVs and electric motorcycles.
  • Administrative considerations: Implementation would require updates to tax/fee collection systems, definitions, and rate-setting processes.

If you have access to the full bill text, I can provide a more precise, line-by-line summary of all provisions, definitions, rates, and any fiscal impact statements.

Compiled from official sources — confirm details with the bill’s official record.

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