Senate Bill Proposes Annual Electric Vehicle Registration Fee

Republican lawmakers continue to introduce proposals on how account for EV road usage. Last week, Senator Greg Rothman introduced SB 656 which would eliminate the alternative fuel tax on electric vehicles and replace it with an electric vehicle fee of $380 per noncommercial electric vehicle and $450 per commercial electric vehicle. These fees will be concurrent with the respective individual’s vehicle registration, as registration of an electric vehicle will not be completed until the fee is paid.

Currently, owners of electric vehicles file monthly statements with the PA Department of Revenue and remit the alternative fuel tax on how much electricity their vehicle uses. However, most electric vehicle owners do not do this, or are inconsistent at doing so, due to the process for remitting the alternative fuel tax being cumbersome. In addition, many electric vehicle owners are not aware they are required to file a monthly statement to the PA Department of Revenue.

The Alternative Fuels Tax assess as $0.0172 per kilowatt hour on at-home charging and public-facing charging stations. The Motor License Fund is only anticipated to receive $10 per electric vehicle (compared to $380 per year in gas taxes).

Rep Rich Irvin (R-Huntington/Franklin) previously introduced House Bill 85 which would create a 5-year pilot program to levy a MBUF (mileage-based user fee) on electric and plug-in hybrid vehicles.