Action was taken at statehouses this year to tap owners of electric and hybrid vehicles to pay more in fees for transportation purposes.
At least 39 states require a special registration fee for plug-in electric vehicles, according to the National Conference of State Legislatures. Most of those states also assess a fee on plug-in hybrid vehicles.
Fees range from about $50 annually in about a dozen states for plug-in personal vehicles to $250 annually in New Jersey. Owners of electric large trucks in Oklahoma must pay fees up to $2,250.
At least nine states structure registration fees for electric vehicles and/or hybrid vehicles to grow over time by linking the fees to the consumer price index or another inflation-related metric.
Already this year, states that include Maryland and New Jersey acted to adopt and begin collection of fees on owners of electric and/or hybrid vehicles.
Pennsylvania
As of Wednesday, Jan. 1, Pennsylvania will begin collecting additional revenue from owners of electric vehicles and hybrid vehicles. The new revenue will go straight to the state’s road fund.
Affected vehicle owners have been required to file monthly statements with the state Department of Revenue and to remit the alternative fuel tax on how much electricity their vehicle uses.
State lawmakers pointed out that most owners of electric vehicles in the state have not been paying the tax or have done so inconsistently. Multiple factors were cited for this inconsistency.
Previously SB656, the new law is touted to simplify the process of ensuring all electric vehicle owners are contributing to the maintenance of roads and bridges. Specifically, the new law replaces the alternative fuel tax collected on noncommercial electric vehicle owners with a flat fee.
Electric vehicle owners will initially pay a flat $200 fee. In 2026, the fee amount will increase to $250. Hybrid vehicle owners will pay $50 in 2025. The amount will increase to $63 the following year.
An annual inflation adjustment will kick in the following year for electric and hybrid vehicles.
Commercial electric vehicles exceeding 14,000 pounds are excluded from the tax. Affected vehicle owners will continue to pay the alternative fuels tax.
Vermont
In nearby Vermont, a fee on certain electric vehicle and hybrid vehicle owners is being added. Revenue raised, however, will not be used for roads.
Starting the first of the year, owners of affected electric vehicles will be responsible for paying an $89 yearly registration fee. Owners of hybrid vehicles will pay $44.50 annually.
Revenue raised via the registration fees will be used for electric vehicle charging stations around the state.
What’s ahead for 2025?
In the lead-up to the start of legislative sessions in New York and Wyoming, state lawmakers have filed bills for consideration to make owners of electric and/or hybrid vehicles responsible for supplementing transportation funding.
In New York, a new bill calls for adding a registration fee for owners of commercial and passenger electric vehicles.
Affected commercial vehicle owners would be responsible for paying a $400 fee. Affected personal vehicle owners would pay $200.
Revenue would largely be directed to roads.
Wyoming already collects a $200 registration fee on the state’s electric vehicle owners to benefit road maintenance. No fee is charged to owners of hybrid vehicles.
A House bill would add a $100 registration fee for hybrid vehicles.
Another provision calls for out-of-state electric vehicles to supplement transportation funding. The tax rate for charging a vehicle at a direct-current fast-charging station would be set at 4 cents per kilowatt-hour. LL
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