Minnesota lawmaker proposes amendment to limit EV registration tax hike to $100

A proposed amendment to Minnesota's transportation finance bill has sparked a heated debate over electric vehicle (EV) registration fees. Currently, EV owners pay an annual registration tax of $75, but the bill suggests a staggering 67% increase to $200. Advocates for the amendment argue that this hike is excessive and unfair, proposing instead a more reasonable fee of $100.

The push for the increase stems from concerns that EV owners are not contributing their fair share to road maintenance since they do not pay gas taxes. However, supporters of the amendment counter that EVs already bear a heavier financial burden through higher upfront sales taxes and registration fees. They highlight that EVs are generally more energy-efficient than traditional vehicles, which should be considered when assessing their contribution to road upkeep.

One speaker pointed out that the average Minnesotan drives about 13,957 miles per year. For comparison, a fuel-efficient vehicle that gets 40 miles per gallon incurs a gas tax cost of approximately $111 annually, while a 50 miles per gallon vehicle pays around $89. Given that EVs are at least as efficient, the proposed $200 fee seems unjustifiable, especially in light of Minnesota's already high sales tax compared to neighboring states.

As discussions continue, the outcome of this amendment could significantly impact EV owners and the future of transportation funding in Minnesota.