Bipartisan bill in Congress includes $130 annual EV registration fee

Politicians say they want EVs to pay "their fair share for the use of our roads."

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[J.R.G]

"The 119th Congress might be one of the most dysfunctional and least productive legislative sessions in the 250-year history of the United States,"

Might??

 

[Snackasaurus]

Minnesota recently added an enormous EV fee to offset lost gas tax revenue. I'd have to drive 30,000 miles a year (more or less) for it to balance out. Between that and this fee, if it passes, it's becoming financially punishing to drive an EV. I'll keep my car, can't imagine driving an ICE car again, but the meme of "only the wealthy drive EVs" is out of date and out of touch.

 

[JohnDeL]

"The 119th Congress might be one of the most dysfunctional and least productive legislative sessions in the 250-year history of the United States,"

Might??

Nobody has been beaten half to death with a cane (yet).

So, yeah - might.

ET: Correct spelling. Darn fat fingers.

 

[JohnDeL]

This is particularly concerning as the EV fee will increase to $150 by 2035—nearly double what gas car drivers would pay in a year.

This reveals that the real purpose of the tax is to punish people for choosing an EV, not to get EV drivers to "pay their fair share". (And while we're talking about "fair shares", why don't we increase the tax on semis so that they pay their fair share?)

 

[dahorns]

Nobody has been beaten half to death with a cane (yet).

Sop, yeah - might.

Wouldn't that improve this Congress?

 

[JohnDeL]

Wouldn't that improve this Congress?

That strongly depends on who is doing the beating. And given what we saw the last time it was tried, it would be the wrong group (the one in support of law and order) getting beaten.

 

[numerobis]

"The 119th Congress might be one of the most dysfunctional and least productive legislative sessions in the 250-year history of the United States,"

Might??

The 37th congress says hi. Definitely wins on dysfunctional what with the literal civil war breaking out; loses on productive, since they did pass a lot of important stuff.

 

[ExGemini]

Fuel price going off the roof.
EV tax.

So you damned if you do, and you are damned if you don't?

I'm waiting for the eventual tax of air that you breath.

 

[Lexus Lunar Lorry]

This reveals that the real purpose of the tax is to punish people for choosing an EV, not to get EV drivers to "pay their fair share". (And while we're talking about "fair shares", why don't we increase the tax on semis so that they pay their fair share?)

Unfortunately, the only effective pro-EV lobbyist in the USA seems to be Elon Musk, who appears to have lost his mind a long time ago.

Meanwhile, the federal gas tax has not been increased since 1993; had it been adjusted to keep pace with inflation, it would add an extra $4.24 to a gallon rather than a pathetic 18.4 cents per gallon.

The goal here appears to be to force EV drivers to pay for the politically-popular-but-financially-unsustainable project of freezing (or even reducing) the gas tax.

 

[cleek]

Meanwhile, the federal gas tax has not been increased since 1993; had it been adjusted to keep pace with inflation, it would add an extra $4.24 to a gallon rather than a pathetic 18.4 cents per gallon.

and Trump wants to suspend that tax, because his stupid war is hurting his popularity.

 

[hydo14]

Sadly we have our own flavour of this coming in 2028 in the UK too. The proposal is a 3p per mile charge, audited via the existing mandatory annual inspection (MOT). I feel it's sad that this is being implemented so close to large scale EV adoption here

 

[tycho55]

Texas already charges an extra $200/year for EV registration. Will states remove or reduce their registration fees if this passes? Methinks not...

 

[first_citazen]

States have been claiming for years that EV owners have to pay their fair share....

Both Hawaii and California have started taxing EV owners to offset loss of gasoline taxes.

So much for either party wanting to promote sustainability

 

[HiroTheProtagonist]

This reveals that the real purpose of the tax is to punish people for choosing an EV, not to get EV drivers to "pay their fair share". (And while we're talking about "fair shares", why don't we increase the tax on semis so that they pay their fair share?)

There was some political effort in my state to set up semis-specific toll gantries on the main highway running through, with part of the motivation being to offset losses in gas tax from EVs, but between lobbying from trucking companies, word getting out that the company that constructed the gantries would be taking a significant portion of the toll revenue and the rumor that the tolls would be applied to every single car on the highway, the whole thing got scrapped. The gantries are still in place, but they're just collecting rust.

So between registration fees, insurance fees and the generally increasing cost of electricity, EVs are already paying their fair share.

 

[porcupine]

I have no problem paying this tax for fixing the roads. It should apply to all vehicles and they can then eliminate the fuel tax.

They should also do the same at the state level.

 

[Tactical Finesse]

Fuel price going off the roof.
EV tax.

So you damned if you do, and you are damned if you don't?

I'm waiting for the eventual tax of air that you breath.

There's a relatively recent Doctor Who episode like that.

 

[Fenixgoon]

This reveals that the real purpose of the tax is to punish people for choosing an EV, not to get EV drivers to "pay their fair share". (And while we're talking about "fair shares", why don't we increase the tax on semis so that they pay their fair share?)

In defense of an EV tax, fuel taxes and registration fees are supposed to help fund road maintenance.
EVs dont need fuel, therefore no tax revenue gained. And EVs are heavier, and therefore damage roads more than comparable ICE vehicles. Semis are of course the biggest offenders, since they are so much heavier than passenger cars (but guzzle fuel to boot).

So I do understand the need to replace that revenue stream somehow. I dont see why a mileage-bassd approach wouldnt work. Could be done on an annual basis at any state-certified inspection location.
Yes a fuel tax is (was?) a simple catch-all, but maybe it's time to change that model to reflect different power sources as well as which vehicles do damage to the road.

 

[ERIFNOMI]

I didn't have a problem paying my state's EV tax because it goes to funding the roads, and it was supposed to offset the loss of the gas tax. Doing a flat amount was dumb when the gas tax proxies actual road use, and it was generally more than I'd have paid in gas tax from a reasonably efficient, comparable car, but I don't mind paying taxes.

This is bullshit though because it means I'd be paying way, way more than via gas tax, regardless of how much I actually use the roads. Just go to a per-mile tax and cut out all the middle men. Remove the gas tax (gas is magically cheaper, woooooo, free political win) and make everyone pay regardless of how your car is fueled.

 

[jsully2549]

"had it been adjusted to keep pace with inflation, it would add an extra $4.24 to a gallon rather than a pathetic 18.4 cents per gallon."

Sliopped a decimal.

$0.424

 

[KingStudMuffin]

Meanwhile, the federal gas tax has not been increased since 1993; had it been adjusted to keep pace with inflation, it would add an extra $4.24 to a gallon rather than a pathetic 18.4 cents per gallon.

I'm pretty sure you have your decimal in the wrong place here; we have not had 2300% cumulative inflation since 1993.

 

[ERIFNOMI]

In defense of an EV tax, fuel taxes and registration fees are supposed to help fund road maintenance.
EVs dont need fuel, therefore no tax revenue gained. And EVs are heavier, and therefore damage roads more than comparable ICE vehicles. Semis are of course the biggest offenders, since they are so much heavier than passenger cars (but guzzle fuel to boot).

So I do understand the need to replace that revenue stream somehow. I dont see why a mileage-bassd approach wouldnt work. Could be done on an annual basis at any state-certified inspection location.
Yes a fuel tax is (was?) a simple catch-all, but maybe it's time to change that model to reflect different power sources as well as which vehicles do damage to the road.

Here we go again...

The road damage of a passenger EV vs ICEV is absolutely negligible.

 

[1Zach1]

In defense of an EV tax, fuel taxes and registration fees are supposed to help fund road maintenance.
EVs dont need fuel, therefore no tax revenue gained. And EVs are heavier, and therefore damage roads more than comparable ICE vehicles. Semis are of course the biggest offenders, since they are so much heavier than passenger cars (but guzzle fuel to boot).

So I do understand the need to replace that revenue stream somehow. I dont see why a mileage-bassd approach wouldnt work. Could be done on an annual basis at any state-certified inspection location.
Yes a fuel tax is (was?) a simple catch-all, but maybe it's time to change that model to reflect different power sources as well as which vehicles do damage to the road.

But gas taxes haven't kept up with road maintence requirements, putting an unbalanced tax on EV drivers make no sense unless the real point is another nail in the coffin of EV adoption in the US.

And most states don't have annual inspections for personal vehicles, so mileage checks won't work.

 

[Demosthenes642]

Charging an EV helps pay for things like electrical grid maintenance and upgrades that ICE drivers benefit from too.

 

[Hort]

I'm waiting for the eventual tax of air that you breath.

 

[ERIFNOMI]

But gas taxes haven't kept up with road maintence requirements, putting an unbalanced tax on EV drivers make no sense unless the real point is another nail in the coffin of EV adoption in the US.

And most states don't have annual inspections for personal vehicles, so mileage checks won't work.

All states require annual registration, right? Require reporting mileage at renewal and tax based at time of sale and delta since last registration.

 

[727200]

I'm perfectly fine paying for my share to offset the loss in gas tax however states have been tacking on charges that faar exceed the parity. I pay my state another $200 annually for my EV which is equivalent to over 800 gallons for my state, over 20K miles annually at 25mpg. I also get taxed for DC charging that is commensurate with our state fuel tax. It's over burdensome and especially for vehicles that don't emit (immediately while driving anyhow).

I'll double down and say it's asinine to float waiving the federal fuel tax while passing the buck to EV drivers at the same time. Which a tax holiday for fuel is going right into Exxon's pocket and you're kidding yourself if there's actual relief outside of robbing the highway trust.

 

[Gibborim]

Minnesota recently added an enormous EV fee to offset lost gas tax revenue. I'd have to drive 30,000 miles a year (more or less) for it to balance out. Between that and this fee, if it passes, it's becoming financially punishing to drive an EV. I'll keep my car, can't imagine driving an ICE car again, but the meme of "only the wealthy drive EVs" is out of date and out of touch.

Honestly, Minnesota is broadly unreasonable in their vehicle registration and wheelage taxation. I have a Master's in Electrical Engineering and I can't make heads or tails of the system. All I know is that I am paying the minimum because my car is over ten years old and tiny.

 

[Tactical Finesse]

In defense of an EV tax, fuel taxes and registration fees are supposed to help fund road maintenance.
EVs dont need fuel, therefore no tax revenue gained. And EVs are heavier, and therefore damage roads more than comparable ICE vehicles. Semis are of course the biggest offenders, since they are so much heavier than passenger cars (but guzzle fuel to boot).

So I do understand the need to replace that revenue stream somehow. I dont see why a mileage-bassd approach wouldnt work. Could be done on an annual basis at any state-certified inspection location.
Yes a fuel tax is (was?) a simple catch-all, but maybe it's time to change that model to reflect different power sources as well as which vehicles do damage to the road.

Thing is--they don't and never have. And they do less now than ever. Federal fuel taxes only fund new federal roads projects, to some extent. The highway trust fund overwhelmingly favors brand new roads, not maintaining old ones. Which varies greatly on the project and political subdivision. As bicyclists know when having to even justify any claim to use roads---a lot of general funds and property taxes go to paying roads maintenance obligations.

Semis are heaviest yes...but most vehicle traffic isn't semis, and SUVs (and EVs) are doing nothing but getting heavier. Even a a tiny friggin EV Mini Cooper is over 3,000lbs empty curb weight. This EV tax is basically "I don't want to pay for the roads--let the liberal elitists pay for all of our roads". Stereotypical deadbeat behavior.

 

[pemmet]

Look-- Some fairness taxes are going to be more fair for some than for others. It's only fair.*



*It's really not, but it's fair to say it is, in all fairness.

 

[stefan_lec]

In defense of an EV tax, fuel taxes and registration fees are supposed to help fund road maintenance.
EVs dont need fuel, therefore no tax revenue gained. And EVs are heavier, and therefore damage roads more than comparable ICE vehicles. Semis are of course the biggest offenders, since they are so much heavier than passenger cars (but guzzle fuel to boot).

So I do understand the need to replace that revenue stream somehow. I dont see why a mileage-bassd approach wouldnt work. Could be done on an annual basis at any state-certified inspection location.
Yes a fuel tax is (was?) a simple catch-all, but maybe it's time to change that model to reflect different power sources as well as which vehicles do damage to the road.

Why is any of this necessary at all? Federal fuel taxes only bring in about $40 billion a year, compared to total federal revenues of about $5,260 billion in 2025.

Just get rid of federal fuel taxes entirely, don’t add EV taxes either. It’s pointless to put so much effort into such a small revenue stream, just pay for highway stuff out of general funds and raise general income taxes by some infinitesimally small amount elsewhere at the same time you cut the fuel taxes, if you need to make stuff balance.

Edit: typo in total revenue

 

[ej24]

This feels oddly petty. Just treat it like gas tax which is a ‘direct’ usage tax. Drive more miles? You pay more gas tax.

Almost every state tracks the odometer at each annual inspection. Just record the mileage and assess taxes for EVs at that time. Drive more. Pay more. Pretty straightforward.

This would require states to crack down on out of state registrations or else they’d be giving potential revenue to other states.

 

[cstalt]

Punishing EV owners. This is priced at roughly double what the average gas vehicle pays per year in federal gas tax.

Meanwhile fossil fuels continue to get tens of billions of dollars in subsidies and preferential treatment from the feds.

 

[lurknomore]

Tariffs, Iran war, now EVs... Boy, it really looks like that Trump guy and his Republican friends really like to intentionally raise prices on people, doesn't it ?
I'm glad we didn't vote again for the evil people who needed two or three years to curb inflation after Covid and the invasion of Ukraine.

 

[DarthSlack]

But gas taxes haven't kept up with road maintence requirements, putting an unbalanced tax on EV drivers make no sense unless the real point is another nail in the coffin of EV adoption in the US.

And most states don't have annual inspections for personal vehicles, so mileage checks won't work.

Mileage checks can work just fine. You just have to report the final mileage upon the sale or junking of the vehicle and there are substantial fines if it turns out you've been lying about mileage.

 

[JohnDeL]

So I do understand the need to replace that revenue stream somehow. I dont see why a mileage-bassd approach wouldnt work. Could be done on an annual basis at any state-certified inspection location.

Some states have tried an mileage-based approach, but that involves having your odometer recorded at annual safety checks, which raises privacy concerns. Other states use a tax based on kWh at your charging station, but that leaves off the whole "can charge anywhere" problem.

A flat fee isn't a bad answer to the problem, but a flat fee that is so much higher than what an ICE would pay in gas taxes shifts it from being recuperative to punitive.

 

[LlamaLaBama]

18.4¢ at my current gas economy (30mpg) and 15k annual miles means a $92 annual gas tax.

A $150 EV fee at a mathematically-aligned 15k annual miles suggests equivalence to 18.4 mpg fuel economy. ... slightly more miles than the average driver, but more or less the average MPG of the current set of vans and light trucks on the road.

I'd still rather drive that upcoming Slate Pickup than deal with these rapid swings in gas prices. My electric's going up too, but at least my state governments able to to target the handful of operators rather than try and push back on the the whole gas industry, distributors, and thousand gas stations.