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Business|E.V. Owners Don’t Pay Gas Taxes. So, Many States Are Charging Them Fees.
https://www.nytimes.com/2025/01/27/business/ev-fees-gas-tax.html
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States are using higher registration fees for electric cars to make up for declining fuel taxes, but some are punitive, environmentalists say. A federal tax could be coming.
Jan. 27, 2025Updated 8:56 a.m. ET
Owners of electric cars in Vermont recently got a letter from the Department of Motor Vehicles with some bad news. Starting Jan. 1 they would have to pay $178 a year to register their cars, twice as much as owners of vehicles with internal combustion engines.
In imposing the higher fee, Vermont became the latest state to make people pay a premium for driving electric. At least 39 states charge such annual fees, including $50 in Hawaii and $200 in Texas, according to the National Conference of State Legislatures. That’s up from no states a few years ago.
Now, as President Trump rolls back Biden administration measures to promote electric vehicles, Republicans in Congress are considering imposing a national fee to bolster the fund used to finance roads and bridges, a fund that is in dire shape.
The fees are an attempt to make up for declining revenue from gasoline taxes that electric cars, for obvious reasons, don’t pay. They’re an example of how governments are struggling to adjust to technological upheaval in the auto industry.
Environmentalists and consumer groups agree that electric vehicle owners should help pay for road maintenance and construction. But they worry that Republicans, who control Congress, would set the fee at extremely high levels to punish electric vehicle owners, who tend to be liberals.
That has already happened in Texas and other states, said Chris Harto, a senior policy analyst at Consumer Reports who focuses on transportation and energy.
