Minnesota working group backs replacing MSRP-based EV surcharge with flat fee after debate over size and indexing
February 09, 2026 | 2026 Legislature MN, Minnesota
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A Minnesota Legislature working group voted Feb. 9 to replace the existing MSRP-based electric-vehicle surcharge assessed at registration with a uniform flat fee, leaving the exact dollar amount to be recorded in the final report.
Chair Anne Johnson Stewart told members the group had considered three recommendations on the surcharge and proposed that the report reflect a discussed range of roughly $100 to $250 and options for indexing the fee over time. Supporters said a flat fee is simpler than an MSRP tiered approach; opponents and some supporters urged caution about setting a punitive level.
Amanda Duer of the Minnesota Auto Dealers Association said her organization was comfortable aligning with the $200 figure discussed during the legislative session: “So if the recommendation would be the flat fee of 200 to relatively approximate what was paid into the gas tax, that's something at least I could support.” Anjali Baines of Fresh Energy and others said they preferred a lower flat fee — Baines suggested $100 — or a long-term transition to a mileage-based user fee.
Representative Austin Murphy and other lawmakers urged that the final report keep the amount open, and Chair Johnson Stewart proposed recording the range discussed and whether the fee would be indexed for inflation. The working group took a roll-call vote and recorded 14 ayes, 1 nay and 3 abstentions; the motion to replace the MSRP-based surcharge with a flat fee was approved and will be reflected in the working-group report to the Legislature.
Why it matters: Replacing a value-based surcharge with a flat fee would simplify administration and public understanding, but the dollar level determines how closely EV drivers contribute to road funding compared with gas-vehicle drivers. The working group’s decision leaves the Legislature room to set a precise fee and whether it should rise with inflation.
What happens next: Staff were authorized to incorporate the group's action into the final report that will be submitted to the Legislature.
Chair Anne Johnson Stewart told members the group had considered three recommendations on the surcharge and proposed that the report reflect a discussed range of roughly $100 to $250 and options for indexing the fee over time. Supporters said a flat fee is simpler than an MSRP tiered approach; opponents and some supporters urged caution about setting a punitive level.
Amanda Duer of the Minnesota Auto Dealers Association said her organization was comfortable aligning with the $200 figure discussed during the legislative session: “So if the recommendation would be the flat fee of 200 to relatively approximate what was paid into the gas tax, that's something at least I could support.” Anjali Baines of Fresh Energy and others said they preferred a lower flat fee — Baines suggested $100 — or a long-term transition to a mileage-based user fee.
Representative Austin Murphy and other lawmakers urged that the final report keep the amount open, and Chair Johnson Stewart proposed recording the range discussed and whether the fee would be indexed for inflation. The working group took a roll-call vote and recorded 14 ayes, 1 nay and 3 abstentions; the motion to replace the MSRP-based surcharge with a flat fee was approved and will be reflected in the working-group report to the Legislature.
Why it matters: Replacing a value-based surcharge with a flat fee would simplify administration and public understanding, but the dollar level determines how closely EV drivers contribute to road funding compared with gas-vehicle drivers. The working group’s decision leaves the Legislature room to set a precise fee and whether it should rise with inflation.
What happens next: Staff were authorized to incorporate the group's action into the final report that will be submitted to the Legislature.
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