Senate committee approves higher EV registration surcharge proposed by Senator Howe; bill moves to Taxes Committee

Senate File 966, introduced by Senator Steve Howe, would raise Minnesota’s electric vehicle annual registration surcharge from $75 to $150 and extend surcharges to hybrids and electric motorcycles. The Transportation Committee considered the bill on March 26, 2025 and voted to move it without recommendation to the Taxes Committee.

Nut graf: Proponents said increasing the flat EV surcharge is the simplest, quickest way to recover lost gas tax revenue as EV adoption grows; supporters argued it can be implemented immediately and imposes minimal administrative burden compared with telemetry or kWh‑based approaches.

Senator Howe said raising the surcharge is a step toward closing the gap between what drivers who buy gasoline pay at the pump and what EV owners contribute. Margaret Donahoe, executive director of the Minnesota Transportation Alliance, testified in favor, citing examples of other states that have adopted annual EV fees or per‑kWh charges and urging a policy that preserves fairness for highway funding. Patrick Heinz, representing the Alliance for Automotive Innovation, testified that a surcharge based on a simple formula is easiest to implement and suggested a fee around $1.46 annually using a formula; he said his members would accept a higher surcharge to approximate gasoline tax contributions.

Committee discussion touched on fairness for out‑of‑state drivers, collection mechanics, and alternative options such as per‑kWh fees and a comprehensive VMT program. Senator Jasinski and others raised concerns about program “leakages” and existing trunk highway fund expenditures that divert funds from road repair.

Senator Howe moved SF966 without recommendation to the Taxes Committee; the motion carried on a voice vote.

Ending: The bill will be considered by the Senate Taxes Committee, which will review revenue and implementation details.