Legislators across twelve states debate on changes to EV and hybrid user fees

Legislators across twelve states debate on changes to EV and hybrid user fees

The shift to greener forms of energy and transport has gained popularity in many states in America. Consumers are ditching petrol and diesel-propelled cars for electric vehicles (EVs) and hybrids to cut carbon emissions. Governments have welcomed this change with open arms. However, there have been growing concerns over the dwindling revenue returns from road users. The states have introduced registration and annual fees to the new generation of cars to complement the funds sourced from gas taxes.

According to a National Conference of State Legislature (NCSL) report, about twenty-eight states have introduced new registration fees and taxes to EV and hybrid users. In Arizona, a bill to impose the annual tax was endorsed by Senate and proceeded to the House. The bill would see EV users part with $110 per year while hybrid users will pay $44 annually. A second bill in the state would introduce the gradual increment of taxes per year. This bill was rejected and did not advance beyond the Senate.

Meanwhile, in Arkansas, the Senate supported a bill that will cut the registration and renewal fee from $100-$200 to $50.In 2019, the government introduced these registration and renewal fees to boost revenue returns. Arkansas has tabled another bill seeking to remove the$100 annual fee on EVs and hybrids. The bill is pending approval by the Transportation, Technology, and Legislative Affairs Committee.

In Florida, there are three bills seeking validation by Senate. One of the statements would apply a $135 flat fee to license an EV less than 10,000 pounds in weight. This rate would gradually increase to $150 by 2025. Hybrid cars would attract a $35 licensing fee which would increase to $50 by 2025. In Kentucky, the first bill aims to charge a $150 registration fee to EV users with cars weighing 10,000 pounds and below. Above this weight, users would part with a $300 registration fee annually. Hybrid plug-ins would attract $75 in registration fees in cars under 10,000 pounds. Beyond this weight, hybrid users would pay $150 annually.

Meanwhile, in Minnesota, a bill seeking to impose $75-$229 EV fees has advanced from Senate. The state will charge hybrid vehicles $114.50 per year if legislators support this bill. In Montana, the Senate approved a bill to introduce a $150 fee on EVs under 6000 pounds. Vehicles above the threshold would attract $250 tax annually. This bill will not affect hybrid users.

In North Dakota, a bill increasing the EV taxes from $120 to $200 and hybrid taxes from $50 to $ 100 is pending approval by the House, having advanced from the Senate. In Oklahoma, a bill under debate in the Senate would introduce a three-cent per kilowatt-hour tax at public charging stations. The bill would also present an annual registration fee on electric vehicles, depending on the car’s model.

In South Dakota, the state’s Governor, Kristi Noem, assented to a bill that would introduce an annual flat rate registration fee on EV owners. In Texas, Representative Ken King introduced a bill that would impose an additional fee of $200 on EV owners and $100 on hybrid users. Meanwhile, in Utah, the Senate rejected a bill seeking to increase EV registration fees. Currently, Utah charges $120 annual fees for EV users,$52 for plug-in hybrids, and $20 for hybrids.

Washington is debating a bill to remove charge fees on hybrid vehicles. So far, no actions have been taken regarding the bill. The state charges $75 annual fees on hybrids and $150 on EVs. In West Virginia, two bills are in the Senate awaiting approval. The bills seek to remove annual fees on EVs and hybrids. West Virginia charges EV users a yearly flat rate of $200 while the hybrid users part with $100.

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