The Minnesota Legislature has approved a significant change to how electric vehicle (EV) surcharges are calculated. Initially, both the House and Senate proposed increasing the flat EV surcharge from $75 to $200 per year to help offset declining infrastructure tax revenues collected through fuel purchases. However, after strong opposition from EV advocacy groups—who argued the fee unfairly impacted buyers of lower-priced vehicles—the final version of the bill introduced a new MSRP-based formula instead.

This new approach means that many lower–cost EVs will end up paying more than the previously proposed $200 flat fee. The surcharge will also be applied in addition to standard registration fees. While more implementation details are expected soon, dealerships should anticipate questions and concerns from consumers at the point of sale. When paired with proposed new federal fees, this change may further dampen momentum in the EV market.