Latest news with #JonKoznick
Miami Herald
20-06-2025
- Automotive
- Miami Herald
EV owners don't pay gas taxes. In Minnesota next year, they'll pay double or more to register their cars
Starting next year, Minnesota electric vehicle owners will have to pay at least double to register their EVs. Blame the change on their freedom from gas taxes. A provision in the transportation bill that passed earlier this month raises the EV registration surcharge from $75 to at least $150. Drivers of plug-in-hybrids will also have to pay a minimum of $75 to register their vehicles. The new fees, which go into effect in January, will scale up with more expensive vehicles - meaning some drivers could see their annual registration costs hit $200 or more. For years, Minnesota lawmakers have debated how to fill a growing gap in roadway funds as more fuel efficient cars and trucks, as well as more electric vehicles, leads to less revenue from the state's gas tax. "Electric vehicle drivers are going to be paying over the next four years somewhere around $40 million," said Rep. Jon Koznick, the Republican co-chair of the House Transportation Finance and Policy Committee. "That does help offset declining gas tax revenues." Rep. Erin Koegel, Koznick's DFL counterpart on the Transportation Committee, said the new fee structure is far from perfect, but she's glad lawmakers included a sliding scale rather than a flat fee of $200, as originally proposed. Lawmakers said that EV drivers will see reduced registration fees in July 2027, when a public charging station tax takes effect. Under that scheme, owners of certain fast chargers will have to pay 5 cents for every kilowatt hour. Minnesota's transportation bill also created a work group to study electricity as a fuel source and recommend a kilowatt hour tax similar to the gas tax. Republicans and DFLers each hold 67 seats in the House, which left little room for disagreement during the budget negotiations. "This is kind of the best that we could get with the circumstances of divided government and all that," Koegel said. Not everyone was happy with the compromise. "We're actually going against the state's electrification goals by doing this," said Carolyn Berninger, who works on public policy issues for Drive Electric Minnesota, a coalition of clean energy advocacy groups. "It's going to make some prospective EV buyers pretty nervous. Electric vehicles already cost more upfront than a comparable gas car." Berninger said she's especially concerned with the timing of the new fees, which come as Congress considers phasing out federal tax incentives for electric vehicle purchases in this year's budget bill. The bill, backed by President Donald Trump, also includes a new $250 annual fee for electric vehicle drivers. That provision is similarly meant to address declining revenue from gas taxes. Jukka Kukkonen, an electrical engineering instructor at the University of St. Thomas and founder of the Minnesota-based EV consulting firm Shift2Electric, said EV drivers were already paying their fair share in taxes with the $75 annual fee. If someone driving a Toyota Prius hybrid, which gets 45 miles to the gallon, paid the gas tax, their average annual cost would be less than $100, he said. How much Minnesotans pay in gas taxes each year on average is a matter of debate. The Bureau of Transportation Statistics estimates that the average gasoline car gets roughly 25 miles per gallon, while trucks and SUVs get about 17 miles per gallon. Minnesotans drove an average of 13,957 miles in 2022, according to the most recent data made public by the Department of Transportation's Federal Highway Administration. When put together with Minnesota's gas tax rate, which stands at 31.8 cents per gallon, an average driver in the state pays anywhere from $177 to $246 a year in gas taxes. Others, including DFL Rep. Steve Elkins, have calculated a smaller figure - closer to $132 annually - saying that Minnesotans only drive an average of 11,500 miles per year. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
CBS News
11-06-2025
- Automotive
- CBS News
Minnesota Legislature approves increased electric vehicle fee to shore up funding for roads and bridges
Electric vehicle owners aren't paying at the gas pump, but they'll soon see higher fees in Minnesota, thanks to a new law doubling the surcharge for those cars to shore up funding for roads and bridges. The current $75 annual fee will double to at least $150. How much someone pays could be steeper if they have a more expensive, newer vehicle, similar to how the state calculates registration fees, which EV owners must still pay. For example, a new EV with a $50,000 retail price would mean a $250 fee based on that calculation, which is more than three times the current rate. The provision was part of a bipartisan transportation package that the divided Legislature approved during Monday's special session and the objective was to find a sustainable path forward for transportation at a time when gas tax revenue — a large source of that support — is declining, according to the Minnesota Department of Transportation. More electric vehicles on the road, which is the state's goal, will mean even fewer dollars flowing into that account in the future. "There's kind of an irony where we want more fuel-efficient vehicles, but that decreases the amount of money that's going into our roads and bridges to maintain them," said Rep. Jon Koznick, R-Lakeville, the Republican co-chair of the House Transportation Committee. "We have about a billion dollars a year funding gap just to maintain our roads and bridges. And so that's why electric vehicles were getting a really good deal before — they're still going to get a pretty good deal." Koznick explained he would have preferred to make the fee flat across the board and not use the formula that would increase the costs for newer vehicles, which he called "convoluted." But it was part of a compromise with Democrats in a divided Capitol, where bipartisan support was required to advance any legislation. EV owners should be paying higher fees because those cars are heavier and do more damage to the roads, he said. The new surcharge takes effect for car registrations after Jan. 1. There is also a new five-cent fee per kilowatt hour of electricity at public charging stations set to take effect in July 2027, at which point the annual surcharge minimum would drop from $150 to $100. Meanwhile, EV advocates are worried increased fees will make consumers pump the brakes on buying one when it's better for the environment. "We do have concerns that we could be discouraging adoption at this point, at a time when the state has said it really wants to support electrification and get more EVs on the roads," said Carolyn Berninger with Drive Electric Minnesota Coalition in a March interview. Only 1% of cars in Minnesota are electric today, Berninger said, but sales are increasing. Seven percent of cars purchased in 2023 were electric, according to the Minnesota Department of Commerce. The state's goal is that 20% of all cars are electric by 2030. "We feel like now is not the time to hike up EV fees because the market is still emerging," Berninger said. Pat O'Brien of St. Paul told WCCO Wednesday that he loves his electric vehicle that he's had for the last few years. He estimates he has saved thousands in that time by not having to pay for gas. He said he isn't quite sure how he feels about the changes. "I understand the reasoning behind why there should be a surcharge, but I'm not sure about this extra—this is news to me that there's yet two more charges," he said.
Newsweek
20-05-2025
- Business
- Newsweek
Minnesota High-Speed Rail Project 'Effectively Dead' After Funding Change
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Plans for a high-speed passenger service between the Twin Cities and Duluth have run out of steam after the Minnesota Legislature voted to redirect $77 million in funding from the Northern Lights Express rail project. The decision was finalized when state lawmakers approved HF1143, a bill channeling those funds into unemployment insurance for hourly school employees during summer months. Newsweek contacted the Minnesota Transport Department for more information via email outside normal working hours. Why It Matters The bill's passage is a huge shift in Minnesota's transportation and budget priorities, de facto ending a years-long push for expanded passenger rail in the region. It comes as many other high-speed rail projects across the U.S. face funding issues and higher scrutiny from the Trump administration. What To Know The approved bill, HF1143, allocated $100 million for summer unemployment aid to part-time hourly school workers. The Democratic–Farmer–Labor (DFL) lawmakers and Education Minnesota union advocated for this move, noting the need to support education employees who lose income when school is not in session, local outlet Alpha News reported. Republican House leaders negotiated that $77 million from previously committed funds to the Northern Lights Express high-speed rail should be used to fund the school worker scheme. A proposed map of the Northern Lights Express, from the Minnesota Transportation Department. A proposed map of the Northern Lights Express, from the Minnesota Transportation Department. Minnesota Transportation Department The Minnesota House passed the bill unanimously (131-0) late Friday, followed by a 44-23 Senate vote. Republican senators opposed the reallocation, describing it as "shifts and gimmicks" in the legislative process. The Northern Lights Express, a proposed four-round-trip-per-day passenger train using BNSF tracks between Minneapolis and Duluth, was approved for nearly $195 million in state funds in 2023. The new funding cut leaves about $108 million remaining in state rail project funds, but House Transportation Committee Chair Representative Jon Koznick, a Republican, said the funding shift means the project is "effectively dead." What People Are Saying House Transportation Committee Chair Representative Jon Koznick, a Republican, told Alpha News on Monday: "For years, Democrats have spent hundreds of millions of dollars on wasteful rail projects that Minnesotans barely use and can't afford. With the House and Senate voting to shift a significant amount of the state's share of the project's funding, the Northern Lights Express train is effectively dead, and taxpayers are better off because of it." Republican Senator Jason Rarick said to Alpha News on Monday: "I think taking this money that came from the transportation realm to here and without actually going through the education committee and going through the transportation committee to have this discussion and having it part of the [budget] targets for consideration of either one, I don't believe this is the right way to go about doing this. "What we should be doing here is sending this money to the general fund and allocating in the [budget] targets to the committee to bring it in and then have it be a part of the committee's omnibus bill." What Happens Next The bill is now awaiting signature by Governor Tim Walz. With the reallocation of funds, the Northern Lights Express rail project's future appears stalled, while state lawmakers are expected to continue discussions on permanent unemployment support for school workers and the direction of Minnesota's transportation priorities.
Yahoo
19-05-2025
- Business
- Yahoo
State lawmakers defund proposed Twin Cities-Duluth rail project
Minnesota lawmakers have voted to strip funding from the Northern Lights Express – the long-debated, proposed a passenger rail service designed to connect the Twin Cities and Duluth. Both the House and Senate have approved a measure to redirect $77 million of approved state funding for the project. Under the plan, which now heads to Gov. Tim Walz for his signature, those funds will instead cover unemployment insurance costs for seasonal school workers – a measure passed by the DFL in 2023 that Democrats wanted to retain during budget negotiations with Republicans. House Republican Transportation Chair Rep. Jon Koznick (R–Lakeville), a longtime opponent of passenger rail projects, said the move means the Northern Lights Express train is "effectively dead." 'For years, Democrats have spent hundreds of millions of dollars on wasteful rail projects that Minnesotans barely use and can't afford,' he said in a statement. Approximately $108 million remains in state funding for the Northern Lights Express. However, lawmakers could also move to redirect those funds as the slim chance of receiving necessary federal funding grows smaller. Koznick said he'll be focusing his effort on ensuring the remaining funds will be spent spent on infrastructure such as roads and bridges. If constructed, the Northern Lights Express would operate on approximately 152 miles of an existing BNSF Railway corridor. The service would make four round-trips daily and be operated by Amtrak or a similar provider, according to the NLX Alliance. With a train operating at speeds of up to 90 miles-per-hour, a one-way trip between the Twin Cities and Twin Ports would take about two-and-a-half hours.
Yahoo
19-05-2025
- Business
- Yahoo
MN lawmakers pull funding from Northern Lights Express train to Duluth
The Brief Minnesota lawmakers voted to reallocate $77 million from the Northern Lights Express rail project to cover unemployment insurance for seasonal school workers. The shift leaves $108 million of the original $195 million in state funding, jeopardizing the proposed train line. Rep. Jon Koznick declared the project "effectively dead," criticizing it as wasteful amid declining rail ridership. DULUTH, Minn. (FOX 9) - A bill approved over the weekend by Minnesota lawmakers pulled funding for the Northern Lights Express train, a proposal that would create a passenger train line running from the Twin Cities to Duluth. What we know In a release on Sunday, House Republican Transportation Chair Rep. Jon Koznick (R–Lakeville) announced House File 1143 had been approved by the Senate. The bill sends $77 million from the rail project to cover unemployment insurance costs for seasonal school workers. The backstory In May 2023, the Minnesota Legislature approved $195 million to go towards the long-proposed Northern Lights Express. After this weekend's votes, roughly $108 million remains for the project. Under the initial proposal, the train would have been run by Amtrak, making four round trips each day on BNSF tracks. Tickets would cost between $30 and $35., with the train running from Target Field to the Union Depot in Duluth, with several stops along the way. However, the plan was contingent on federal funds, which would have covered 80 percent of the costs of the project, which haven't come through. What they're saying In a provided statement, Rep. Koznick said: "For years, Democrats have spent hundreds of millions of dollars on wasteful rail projects that Minnesotans barely use and can't afford. With the House and Senate voting to shift a significant amount of the state's share of the project's funding, the Northern Lights Express train is effectively dead, and taxpayers are better off because of it." Dig deeper Earlier this year, the Met Council announced plans to shift the Northstar train line, which runs from downtown Minneapolis to Big Lake, to a bus service. The decision comes as ridership has plummeted for the line following the pandemic – and as Rep. Koznick was pushing legislation to cut funding for the rail line, which the lawmaker said the line was costing taxpayers $11 million despite "near zero" ridership.
