Minnesota Legislators Considering “Paddle Tax”

A new proposal under consideration by a Minnesota legislative committee is attracting interest from the state’s outdoor recreation community. Lawmakers are weighing a measure that would add a “paddle tax” to canoe registrations, aiming to offset lost transportation-related tax revenue tied to non-motorized watercraft.

The proposal mirrors a policy already in place for electric vehicles, which carry an additional annual fee because they do not contribute to gas tax revenues used to fund infrastructure. Supporters of the canoe measure argue that, while canoes don’t use fuel, they still rely on roads, access points, and public land infrastructure funded in part by those same tax streams.

Under the proposal, canoe owners would pay an additional $30 per seat as part of their three-year watercraft registration. A standard two-seat canoe would see a $60 increase, while larger canoes would be assessed accordingly based on capacity.

“This is about fairness and shared responsibility,” said one legislator backing the bill during committee discussion. “We have thousands of canoes being transported across Minnesota roads every year—on vehicles, using access points, benefiting from maintained infrastructure. It’s only fair that they help pay their way. The revenue generated will go directly toward supporting recreation and protecting clean water resources across the state.”

Critics argue that the comparison to electric vehicles is flawed, noting that canoes themselves do not cause wear on roads or infrastructure in the same way motor vehicles do. Others worry the fee could discourage participation in outdoor recreation or place an outsized burden on small businesses that rely on large fleets.

Supporters counter that the funds could help maintain and improve access points, portages, and water quality initiatives—benefits that directly support paddlers.

The proposal remains in committee, where lawmakers are expected to hear additional testimony from stakeholders in the coming weeks. If advanced, it would need approval from both legislative chambers before heading to the governor’s desk.