17 States Have Passed Electric Vehicle Taxes
States are imposing fees on EV drivers, pushing to boost road repair efficiency. Already, the nation’s gas tax was caught up to the “electric vehicle” tax—which now spans across 17 states.
The States in Question with Electric Vehicle Taxes
While the electric vehicle taxes aren’t new, they’ve certainly grown in number. Recent states to include these electric vehicle expenses include Michigan, Virginia, Indiana, Minnesota, Tennessee, Oklahoma and California. Meanwhile, the following nine states have either passed or have implemented electronic vehicle fees in the recent past:
- North Carolina
Several sources suggest that other states will soon be introducing legislation themselves, requiring EV owners to pay separate fees for ownership.
What’s With the Fees?
By and large, the electric vehicle tax has been developed to help pay for America’s growing transportation infrastructure. While the infrastructure has traditionally been paid for in gas taxes, electric vehicle owners are stepping up to the plate. In the past, gasoline purchases served as a pseudo proxy to repair road wear-and-tear. EVs have been deemed to be more efficient, however, they’ve become targets for new legislation.
In some cases, fees are being created based upon vehicle miles traveled—as opposed to fuel types. This model is taking time to catch on, but it’s been adopted by Oregon, Vermont and several other states. Meanwhile, other states maintain their yearly fee requirements on hybrid and electric vehicles alike; the prices range from $50 to $300 per driver, per year.
The Industry at Large
Seemingly, the tax requirements are rolling in just as EVs are taking off. It’s probably no coincidence the taxes are related to various petroleum-based transportation campaigns. EVs place risk on America’s oil and coal industries.
Likely, oil tycoons realizing EV as a legitimate sales threat might result in further payment pushes. Some experts believe EVs will account for over two-thirds of the road’s vehicles by 2050, too—displacing over 25 million barrels of oil, daily.
On the other hand, there are still proponents of no-tax EV bills. Many have pointed out that lost revenue likely won’t be recovered in any meaningful way by charging EV drivers. They similarly assert that our current gas tax—as it is—is an outdated revenue source for infrastructure funding.
For now, going greener is still a viable option. Many still oppose the taxation of cleaner electric vehicles. As they rise in popularity, we may even see a strong counterbalance to this proposed legislation. For now, however, it’s largely speculation.
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