Electric and Hybrid Vehicles Subject to Bills at Eight Land Line State Houses
Lawmakers across the country are taking action to address the issue of additional transportation funding through hybrid and electric vehicles.
The popularity of these vehicles is expected to increase over the next several decades. As a result, state officials are taking steps to ensure that they will be able to capture the necessary transportation revenue from owners of fuel efficient or alternative fuel vehicles.
About 30 states have special registration fees for plug-in electric vehicles and / or plug-in hybrids. Fees range from about $ 50 per year for plug-in hybrid vehicles in Iowa to $ 225 per year for plug-in electric vehicles in Washington.
Below is a recap of notable efforts by states to manage the revenue generated by alternative fuel vehicles.
Reverse route in Arkansas
A new law in Arkansas goes the opposite direction of seeking additional income from owners of alternative fuel vehicles.
Two years after state lawmakers authorized an additional registration and annual renewal fee on hybrid and electric vehicle registrations, Governor Asa Hutchinson signed a bill to reverse the course.
Previously SB225, the new law reduced the fees collected from owners of hybrid vehicles from $ 100 to $ 50. The $ 200 fee applied to electric vehicle registrations will also be reduced to $ 50.
According to estimates from the Ministry of Finance and State Administration, the reduction in annual fees would reduce revenues by $ 1.1 million.
Two Florida Senate bills would raise more money from owners of hybrid and electric vehicles.
The first bill, SB140, would apply a flat fee of $ 135 to register an electric vehicle up to 10,000 pounds. The rate would rise to $ 150 in 2025.
Affected vehicles weighing at least 10,000 pounds would incur a license fee of $ 235. The fees would increase to $ 250 in 2025.
Owners of hybrid vehicles would be responsible for paying a license fee of $ 35. The amount would increase to $ 50 in 2025.
The revenue generated from the license fees would be deposited into the State Transportation Trust Fund.
The adoption of the bill is subject to the approval of a related bill for the establishment of a subsidy program.
The bill, SB138, would allow state agencies and local governments to request funds through the fees allowed in SB140. The revenues would be used to develop plans to add charging stations.
In Minnesota, a transportation bill includes a provision to increase surcharges on electric and hybrid vehicles.
The surcharge for electric vehicles would drop from $ 75 to $ 229. An additional $ 114.50 would also be levied on plug-in hybrid vehicles.
Both charges would be tied to the state fuel tax.
“Gasoline taxes run the risk of being regressive, but if electric vehicle owners contribute to this fund like all other car owners already do, we can avoid this situation altogether,” said Senator Jeff. Howe, R-Rockville, in prepared remarks.
“Electric vehicles are heavier than their gasoline-powered counterparts, and as long as they benefit from national roads, they would have to pay to maintain them as well.”
SF1159 is located on the Senate floor.
Montana’s Senate Finance and Claims Committee held a hearing Tuesday on a House-approved bill to operate electric vehicles to help cover the costs of road maintenance and construction. The charge would not apply to hybrid vehicles.
Sponsored by Rep. Denley Loge, R-St. Régis, the bill would introduce a new annual fee on all electric vehicles registered in the state. Specifically, affected vehicles under 6,000 pounds would be charged $ 150. Affected vehicles between 6,000 pounds and 26,000 pounds would be charged $ 250. Bigger electric trucks would pay $ 500 per year.
Loge said the annual cost would be cheaper than what owners of fuel vehicles pay for taxes at the pump.
“There’s the same wear and tear on an electric car as there is on a gasoline vehicle or a diesel vehicle,” Logue said. “It just puts them in a range that they can pay for some of the road use that we pay for the rest.”
A tax note attached to the bill reports that there are 996 electric vehicles in the state. The number of these vehicles is expected to increase each year.
The proposed fees are estimated to increase by $ 241,350 by fiscal 2025.
The committee voted to advance HB188 to the Senate.
The Oklahoma legislature has approved a bill that focuses on raising additional revenue from electric and hybrid vehicles.
HB2234 sponsors say the effort is aimed at ensuring that all vehicles on Oklahoma’s freeways contribute to the cost of maintaining systems in a “fair and equitable” manner.
Gov. Kevin Stitt’s Office Bill would enact a 3-cent-per-kilowatt-hour tax on for-profit public charging stations. Specifically, a vehicle with a 50 kW battery could fully charge for a fee of $ 1.75 or less.
Owners of electric vehicles in the state would be entitled to a tax credit up to their annual registration amount for charges paid at public charging stations.
Supporters say the tax would allow the state to collect revenue on out-of-state vehicles.
In addition, annual vehicle registration fees would be applied for electric vehicles. A summary of the invoice indicates that the charges would vary depending on the vehicle model, ranging from $ 110 to $ 1,687.
Senator Zack Taylor, R-Seminole, said that while fuel taxes are one of the main sources of financing Oklahoma’s roads and bridges, it is important to ensure that electric vehicles are also taken into account when financing transport.
“As electric vehicles have become more popular, it’s clear that we need to find a fair way to ensure that these EV drivers also help support our transportation infrastructure,” Taylor said in prepared remarks.
A new law in South Dakota enacts a flat annual registration fee for many owners of electric vehicles.
Previously HB1053, the new law covered owners of non-commercial vehicles $ 50 per year for registration.
An estimated $ 8,000 per year will be allocated to the state road maintenance fund.
Senator Mary Duval, R-Pierre, told the Senate it was time for electric vehicle owners to help repair the state’s roads and bridges.
“It’s the right thing to do now to make sure we have good roads and good bridges,” said Duval.
In Texas, the House Transportation Committee held a hearing Tuesday on a bill to impose additional fees for the registration and renewal of the registration of electric and hybrid vehicles.
Sponsored by representative Ken King, R-Hemphill, HB427 would charge an additional fee of $ 200 for electric vehicles and $ 100 for hybrid vehicles.
Collecting the additional fees is expected to raise $ 60 million in the first year for the state’s road fund, according to a tax note.
The committee did not vote on the bill.
Likewise, two Wisconsin bills would eliminate surcharges levied on owners of electric and hybrid vehicles.
The state charges an annual fee of $ 100 on electric vehicles and $ 75 on hybrid vehicles.
The legislation would cancel the surcharges. Instead, an annual fee of $ 5 would be charged for vehicle registrations weighing at least 3,000 pounds.
Representative Lee Snodgrass, D-Appleton, said in a statement that the existing charge on alternative fuel vehicles amounts to $ 6.2 million per year for the state’s Transportation Fund. It is estimated that the proposed new fees will raise $ 7.1 million per year.
“With the impacts of global climate change, we should do all we can to entice, not discourage Wisconsinians from making green decisions in their purchases,” Snodgrass wrote. LL
More status trends
Keith Goble, the state legislative editor for Land Line Media, keeps track of many trends among states across the United States. Here are some recent articles from him.