As popularity grows around the country for electric and hybrid vehicles, state officials are pursuing opportunities to make sure they will be able to capture needed transportation revenue from affected vehicle owners.
There are at least 32 states that impose a special registration fee for plug-in electric vehicles, according to the National Conference of State Legislatures. Of those, 19 states also assess a fee on plug-in hybrid vehicles.
Fees range from about $50 annually for plug-in electric vehicles in Colorado, Hawaii and South Dakota to $225 yearly for plug-in electric vehicles in Washington.
Florida
A Florida Senate bill would capture needed transportation revenue from electric and hybrid vehicle owners.
The bill, SB1070, would impose a yearly registration fee of $200 on electric vehicles. Hybrid vehicle owners would be charged $50.
The amounts would increase by $50 in 2028.
An exemption is included for vehicles that use a battery storage system of up to five kilowatt- hours.
The Senate Transportation and Appropriations committees approved the bill by unanimous consent. It awaits further Senate consideration.
Georgia
Georgia state lawmakers have sent to the governor a bill to tax electricity for vehicles.
Currently, charging stations in the state charge affected vehicles for the amount of time spent at the pump.
SB146 would require those drivers to pay for the kilowatt power used. The change is described as similar to paying for fuel by the gallon.
The Georgia Department of Agriculture would be required to regulate electric vehicle charging stations.
Stations would be responsible for posting their prices. State inspectors would monitor to make sure customers are getting the electricity they pay for.
Additionally, the bill would add a state excise tax of 2.84 cents. The revenue would be used to help pay for road work.
The $211 registration fee now paid annually by electric-vehicle owners would remain unchanged.
Indiana
One Indiana transportation bill nearing statehouse passage includes a provision to collect more revenue from electric and hybrid vehicle owners.
The state charges electric vehicle owners a $150 fee. Hybrid vehicle owners pay a $50 fee.
The amounts are collected every five years.
HB1050 would increase the amounts to $214 for electric vehicles and $72 for hybrid vehicles. Starting in 2025, the fees would be collected annually.
House and Senate lawmakers have approved differing versions of the lengthy transportation bill.
A conference committee has been appointed to hash out differences between the two chambers. The clock is ticking with a Saturday, April 29, session adjournment.
Montana
A new Montana law supplements transportation funding via electric and hybrid vehicles.
Gov. Greg Gianforte has signed into law a bill to tap affected owners to help cover costs for road upkeep and construction.
Previously HB60, the new law charges electric vehicles under 6,000 pounds $130. Affected vehicles between 6,000 pounds and 26,000 pounds will be charged $190 and $340. Electric trucks in excess of 26,000 pounds will pay $1,100 annually.
The fee amounts for hybrid vehicles range from $70 for vehicles under 6,000 pounds to $700 for vehicles in excess of 26,000 pounds.
“The intent of this bill is to try to find some way to get some road-use fees out of the electric vehicles,” Rep. Denley Loge, R-St. Regis, recently told lawmakers. “There is no way to get a road-use fee from electric vehicles in the gas tax.”
“What this bill does is creates a mechanism to collect some funds that will go directly into the gas tax fund.”
A report from the Montana Legislative Services Division shows there were 1,893 plug-in electric vehicles registered in the state as of Jan. 1, 2022. There were 1,002 plug-in hybrid vehicles registered.
The Governor’s Office of Budget and Program Planning estimates vehicles covered in HB60 will increase by 30% annually.
The fees are estimated to raise $444,00 annually by fiscal year 2025.
The changes take effect on July 1.
North Carolina
A bill moving through the North Carolina Senate would tap electric and hybrid vehicle owners to help boost transportation revenue.
Electric vehicle owners in the state already pay an additional $140.25 for registration or renewal. Hybrid vehicle owners do not pay an additional fee.
The Senate Transportation Committee voted unanimously to advance a bill that would increase the fee amount for electric vehicles by $39.75 to $180. A $90 fee would be added for hybrid vehicles.
Other revenue-generating provisions in the bill include removing the highway use tax cap on vehicle purchases, adding a flat tax for ride-share services, and doubling the allowed number of public-private partnerships for toll road projects.
SB354 is in the Senate Finance Committee.
Pennsylvania
In Pennsylvania, one bill would create a five-year pilot program to levy a mileage-based user fee on electric and hybrid vehicles.
“Pennsylvania funds a substantial portion of its road maintenance with a fuel tax. However, with over 30,000 motorists driving plug-in hybrid and electric vehicles, we need to ensure that everyone is contributing to the care and maintenance of Pennsylvania roads,” Rep. Rich Irvin, R-Huntingdon, wrote in a bill memo.
HB85 would assess a 25-cent-per-mile fee or $214 annual fee on hybrid vehicles. Electric vehicle owners would pay a 31-cent-per-mile fee or a $265 yearly fee.
Affected vehicle owners who choose the mileage-based fee would not be required to pay more than the annual fee for their vehicle type, nor would they be required to install a GPS-style device that tracks their travel.
The bill is in the House Transportation Committee.
Tennessee
Tennessee Gov. Bill Lee has signed into law a $3.3 billion bill that is touted to tackle transportation needs throughout the state.
Lee’s administration says state growth in rural and urban communities and truck traffic is far outpacing roadway capacity investments.
On April 17, the governor signed the Transportation Modernization Act. The new law includes authorization for TDOT to pursue public-private partnerships.
TDOT points out that the state’s revenue stream for transportation relies heavily on fuel taxes, which is described as being eroded through factors that include increased fuel economy and the emergence of hybrid and electric vehicles.
Additionally, because the state’s fuel tax rates are not indexed, TDOT’s purchasing power is further diminished by rising construction costs and inflation.
One solution touted by the road agency has been to raise fees on owners of all-electric vehicles.
Affected vehicle owners now pay $100 yearly.
The new law raises the annual rate to $200 until 2027. At that time, the rate will increase to $274. The state will index the rate to inflation thereafter.
Hybrid vehicle rates will be set at $100 through 2027. Starting in 2028, the rate will be indexed.
Texas
One Texas bill would raise road revenue via electric and hybrid vehicles.
The House bill, HB820, would impose an additional fee for the registration and renewed registration of electric and hybrid vehicles.
An additional fee of $200 would be collected for electric vehicles and $100 for vehicles that use a combination of fuel and electric power, or hybrid vehicles.
Collecting the additional fees is estimated to raise $280 million during the 2024-25 biennium, according to a fiscal note.
Advocates say that electric vehicle owners essentially receive a tax break by not paying the 20-cent state fuel excise tax. Taxes they do pay do not go into the road fund.
They add that fuel tax revenues cannot keep pace with vehicle use and rising road construction costs. Additionally, supporters say that increasing the popularity of more fuel-efficient and electric vehicles will only widen the gap.
HB820 would deposit most of the revenue raised – 90% – into the state highway fund. Money in the fund is limited to road and bridge work.
The rest of the revenue raised would be applied to an electric vehicle battery disposal account to reimburse costs by the state.
The bill is in the House Transportation Committee.
Vermont
A bill halfway through the Vermont statehouse would add fees for electric vehicles and hybrid vehicles to help recoup lost fuel tax revenue.
House lawmakers voted 100-39 to approve a bill that would authorize the design of a mileage-based user fee for electric vehicles. The tax would be calculated annually based on the total number of miles driven within in the state.
Advocates say the fees would be comparable to what an average fuel-powered vehicle pays in state fuel taxes.
Hybrid vehicle owners would pay an increased registration fee.
The implementation date would be July 2025.
H479 has advanced with changes from the Senate Transportation and Finance committees and awaits Senate floor action. LL
More Land Line coverage of state news is available.
