Last week, the Senate Transportation Committee heard a number of bills that address statewide transportation needs. Included in the hearing were four of my bills. Two of those bills specifically addressed taxing electric vehicles and their charging process, one addressed the auto parts sales tax, and the final one updates the Greater Minnesota Standalone Noise Barrier Program.

Minnesota has seen yearly increases in electric vehicle sales, with the main selling point being that folks who get these cars don’t have to pay for gas, nor do they have to pay to charge their cars. That means gas taxes are regressive, and as EV sales continue to increase, gas revenues will continue to decrease. I introduced two bills that address this issue. SF-2178 increases the registration surcharge for all-electric vehicles from $75 to $150, and those revenues would then be deposited into the Highway Users Tax Distribution Fund (HUTDF). SF-2855 imposes a tax of cents per kilowatt hour for charging electric vehicles, with that tax also going to the same fund. This second bill would eliminate the surcharge on electric vehicles, so we can avoid double-taxing EV owners.

Transportation has three main funding sources: gas taxes, motor vehicle sales taxes, and license plate tab fees. Electric vehicles still benefit from our roads, bridges, and infrastructure, even without contributing to all these taxes like every other vehicle owner. Our roads are in constant need of attention and repairs, and that requires funding. Every single citizen should be contributing funds to roads and bridges, regardless of what vehicle they drive. Adopting either of these bills would future-proof the source of our infrastructure funding. Gas vehicles may phase out, but roads will be used for the foreseeable future. We need to figure this issue out ahead of time.

The third bill, SF-414, addresses the Auto Parts Sales tax. Under current law, every year a flat amount of $145.644 million of the auto parts sales tax is taken from the general fund and given to the HUTDF, which is less than 50% of the amount collected from the auto parts sales tax. This funding supports highways, roads, and streets across the state. My bill would adjust that amount to 100% of auto parts sales tax funds, so that the Transportation fund continues to grow over time. 76% of funding would go to HUTDF, 12% would go to the Small Cities Account, and 12% would go to the Townships Road Account. Minnesotans count on these roads in their daily lives, and this bill simply ensures that roads and bridges across the state are getting the steady funding they desperately need. 

The final bill, SF-2678, is a simple piece of legislation that updates the Greater MN Standalone Noise Barrier Program. The original statute is out-of-date and was written in a way that excludes non-incorporated areas. Currently, only incorporated areas can apply to build noise barriers, regardless of whether or not a township has the capability to make the installment happen. Because of how outdated this statute is, many townships get left with noisy corridors, while cities are given the ability to combat that issue. This bill was moved to the floor, and I’m hopeful we can take care of this for our townships.

My bills all address multiple transportation issues in different ways. There is still a lot of work to be done but I am glad we were able to start the discussion.