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Minnesota lawmakers are debating new fees and taxes on electric vehicles (EVs) as they seek solutions for declining gas tax revenue that funds road and bridge repairs.
Proposed Measures Include:
- A $0.05 per kilowatt-hour tax on public EV charging stations.
- Increasing the annual EV surcharge from $75 to as much as $200.
- A mileage-based tax charging drivers based on total miles traveled in the state.
With gas tax revenue falling 1-2% annually due to fuel efficiency improvements, Minnesota’s goal of having 20% of all cars electric by 2030 could further widen the funding gap.
Supporters of the proposals—including the Minnesota Chamber of Commerce and the Coalition of Greater Minnesota Cities—argue that higher EV fees are necessary to maintain sustainable infrastructure funding.
However, clean energy advocates warn against discouraging EV adoption, noting that buyers already contribute significantly through higher sales taxes and registration fees due to EVs’ higher upfront costs.
Lawmakers may fold these proposals into a broader transportation package as they finalize the state’s next two-year budget, with a $6 billion deficit looming.
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