WeVote
Log In

Bill

Bill

HF 4717

Tax on electricity sold as vehicle fuel modified, and money appropriated.

2025-2026 Regular Session

Minnesota will start licensing EV charging station operators in 2027 and tax electricity sold as vehicle fuel at retail charging stations, with a starting rate of 5 cents/kWh and a

Introduction and first reading, referred to Taxes
#appropriations #energy #motorvehicles #transportationandtransportationdepartment
0
WeVote Research Nonpartisan
Bill Summary · HF 4717

Summary of HF 4717 (2025-2026) — Minnesota

Purpose and intent

HF 4717 proposes to modify the tax treatment of electricity sold as vehicle fuel at retail charging stations (i.e., electric vehicle charging). The bill redefines terms related to charging stations, creates licensing requirements for operators, establishes a per-kilowatt-hour tax on electricity sold as vehicle fuel (with adjustments over time), and provides exemptions, recordkeeping, and enforcement provisions. It also appropriates funds to support electric vehicle infrastructure.

Key provisions and changes

  • Definitions and terminology

    • Replaces several references to “public” charging stations with “retail” charging stations.
    • Defines terms:
    • “Retail charging station” (facility selling electricity as vehicle fuel).
    • “Retail charging station operator” (person who owns/operates such a station).
    • “Legacy charger” (station in operation before Oct 1, 2023 that cannot measure electricity delivered as vehicle fuel).

  • Licensing of charging station operators (Sec. 3)

    • Beginning July 1, 2027, charging station operators must be licensed by the commissioner.
    • Licensing requirements include qualifications (no outstanding tax issues, no recent revocation), a one-year licensing period (July 1–June 30), and surrender obligations if the business changes hands or ceases operation.

  • Tax on electricity sold as vehicle fuel (Sec. 5 & 6)

    • Baseline tax: 5 cents per kilowatt-hour (kWh) for electricity sold as vehicle fuel at retail charging stations, effective July 1, 2027.
    • Annual rate adjustment (to begin August 1, 2027, for the following year): the rate must be adjusted based on the Minnesota Highway Construction Cost Index (HCCI) with a cap on annual variation.
    • Calculation uses a “reference year” (12 months ending June 30 two years prior to the year of calculation).
    • The new rate must not be lower than the base 5-cent rate and cannot increase by more than 3% annually due to this adjustment.
    • Monthly/quarterly reporting and remittance requirements were previously described but are amended to align with the rate adjustment (specifies reporting periods and electronic remittance).

  • Exemptions and exemptions timing (Sec. 7)

    • Legacy chargers: exemption from the tax through December 31, 2031; starting 2032, must charge per-kWh cost plus method.
    • Exemptions from the tax:
    • Electricity charged at private residences supplied by an electric utility.
    • Retail charging stations with capacity under 3 kilowatts.
    • Charging stations that do not require payment for electricity delivery.
    • Government and certain government-contractor electricity use (cost-plus a fixed fee arrangements).

  • Recordkeeping and audits (Sec. 8)

    • Charging station operators must maintain records of electricity sold as vehicle fuel for 3.5 years.
    • Records must be accessible to the commissioner; examinations of these records may be conducted.

  • Penalties for operating without license (Sec. 9)

    • If operating without the required license, tax/fees become immediately due with a 25% penalty, plus interest.

  • Authority and exemptions in existing tax code (Sec. 10)

    • Adds an exemption for electricity sold at retail charging stations as vehicle fuel from the general tax in certain circumstances.
    • Defines applicability and effective date (sales after June 30, 2026).

  • Appropriation (Sec. 11)

    • A onetime appropriation (FY2027) from the general fund to the Commissioner of Transportation to support the electric vehicle infrastructure program (matching federal aid, related state investments, and staff costs). Availability through a specified future date.

Who is affected

  • Retail charging station operators and owners become subject to licensing starting 2027 and must collect/remit the vehicle-fuel electricity tax (with annual rate adjustments).
  • Legacy charging stations face temporary exemption periods, then must transition to a per-kWh cost-based approach.
  • Electric vehicle users may see changes in pricing at charging stations (dependent on the rate adjustments and exemptions).
  • State agencies (Department of Public Safety, Department of Revenue, Department of Transportation) will administer licensing, tax collection, enforcement, and reporting, and will oversee records.
  • Public infrastructure programs may receive funding through the proposed appropriation for EV infrastructure.

Timing and procedures

  • Licensing required beginning July 1, 2027; annual license period ends June 30.
  • Tax on electricity as vehicle fuel begins July 1, 2027; rate adjustable annually starting August 1, with a cap of 3% per year.
  • Legacy chargers exempt through 12/31/2031; post-2031 transition rules apply.
  • Administrative and reporting requirements are phased in with the licensing and tax collection timelines.
  • Onetime appropriation for EV infrastructure program in FY2027.

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

Sign in to ask a question.