Proposal to cut EV surcharge but add weight‑based fee laid over for more work

Representative Kraft presented House File 34‑30 as a move to return to a flat $100 EV surcharge, paired with a weight‑based adder for vehicles over 5,000 pounds to account for road wear and safety differences. Kraft said the change is intended to be revenue neutral and to make EV fees more equitable: "If you use the roads more, you should pay more," he said, citing MnDOT mileage figures in his rationale.

Industry and advocacy witnesses gave mixed reactions. Amanda Duerer, director of government affairs for the Minnesota Automobile Dealers Association, said MADA supported a return to a flat surcharge but opposed Section 3, which would impose a weight‑based surcharge that was not discussed in the working group; she warned it would compound already‑high Minnesota registration taxes and provided sample calculations for model years and registration totals. Anjali Baines of Fresh Energy urged a broader funding solution and argued that EVs comprise a small share of the passenger fleet and should not be taxed more heavily. EV owners and Drive Electric Minnesota speakers favored equitable treatment and suggested mileage‑based alternatives or an opt‑in option.

Members pressed the author on where revenue would be deposited; nonpartisan staff and Representative Kraft said revenue would flow to the Highway User Tax Distribution Fund and is not currently available to subsidize EV infrastructure. Questions also touched on fiscal‑note assumptions and whether federal gas tax receipts should be included in comparisons. Representative Kraft said he welcomed continued conversation and refinements, and the committee laid the bill over for further work.

The bill will return to the committee after authors coordinate on amendments and fiscal details.