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States impose EV fees to offset gas-tax shortfalls, spark controversy

Oct 16, 2023

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The political debate over electric vehicles is continuing as individual states start to enforce EV registration fees. More Republican-led states are implementing annual fees costing $200 or more to replace the gas taxes EVs avoid.

The gas taxes that help fund infrastructure are taking a hit as electric vehicles more people are driving EVs.

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This issue of electric vehicles is another topic of debate between Republicans and Democrats. GOP presidential candidate and Florida Gov. Ron DeSantis spoke in New Hampshire and expressed concerns over the government pushing EVs.

“In places like California, they are forcing all new cars at a certain date in the pretty close future to be electric,” DeSantis said.

Former President Donald Trump appealed to autoworkers in September, saying that the push to EVs would make their jobs obsolete.

“Now they want to go all electric and put you all out of business you know that right,” Trump said. “Biden’s mandate is not a government regulation, it is a government assassination of your jobs and your industry, the auto industry is being assassinated.”

Some Democrats say that the states implementing higher registration fees is another effort to hinder future sales of the vehicles.

Republican-led Texas instated EV fees back in September. Electric vehicle owners now pay a $400 first-time registration fee, followed by an annual $200 fee.

The main debate seems to be over what the cost of a fee should be, and other ways to fill infrastructure funding gaps.

In Pennsylvania, a left-leaning state, lawmakers approved a $290 fee for electric vehicles. Nick Miller, Pennsylvania state policy lead at the Electrification Coalition, argued that costly fees are detrimental for the future of electric vehicles.

“To reiterate, we agree that all vehicles need to be paying for their use of the roadway.” Miller said. “With the gas tax diminishing in value, states search for a viable alternative for transportation infrastructure funding. However, if a state chooses to levy any EV fee, the tax needs to be fair and should be comparable with current ICE fuel taxes.”

Sen. Lindsey Williams, D-Penn., voted against the legislation, saying that to fill the funding gaps, there needed to be a complete overhaul on how infrastructure is funded in the first place.

Washington state — led by Democrats — charges over $200 annually in EV fees. A portion of the money goes to the installation of charging stations throughout the state.

In Florida, a right-leaning state, a bill to approve annual fees of more than $200 passed in the state’s House, but failed in the Senate after a study showed lower fees would be more equitable.

Left-leaning Oregon has looked in another direction. Instead of doing annual fees, the state has implemented a pilot program that tracks how far EV owners drive. Drivers are then charged based on the distance they travel in to make up for declining gas tax revenue.

Similar programs have since been adopted by other states, including Utah and Virginia.

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AS THE POLITICAL DEBATE OVER ELECTRIC VEHICLES CONTINUES.. STATES ARE ADOPTING EV REGISTRATION FEES. MORE REPUBLICAN LED STATES, ARE IMPLEMENTING HIGH ANNUAL FEES OF TWO-HUNDRED DOLLARS OR MORE ON ALL EV’S… TO REPLACE THE GAS TAXES EV DRIVERS CURRENTLY AVOID. THOSE TAXES FUND INFRASTRUCTURE BUT HAVE TAKEN A HIT AS MORE EV’S GET ON THE ROAD.

 

IT IS YET ANOTHER POINT OF CONTENTION BETWEEN REPUBLICANS AND DEMOCRATS WHEN IT COMES TO E-VS. OVER THE WEEKEND FLORIDA GOVERNOR AND GOP PRESIDENTIAL CANDIDATE RON DESANTIS WAS IN NEW HAMPSHIRE AS HE  EXPRESSED CONCERN OVER THE GOVERNMENT PUSHING ELECTRIC VEHICLES.

 

“In places like California, they are forcing all new cars at a certain date in the pretty close future to be electric.”

 

AND FORMER PRESIDENT DONALD TRUMP TOLD AUTOWORKERS IN SEPTEMBER THAT THE PUSH TO ELECTRIC VEHICLES IS GOING TO MAKE THEIR JOBS OBSOLETE.

 

“Now they want to go all electric and put you all out of business you know that right… Biden’s mandate is not a government regulation, it is a government assassination of your jobs and your industry, the auto industry is being assassinated.”

 

SOME DEMOCRATS SAY THAT HIGHER REGISTRATION FEES BEING IMPLEMENTED BY THE STATES ARE JUST A WAY TO HINDER FUTURE SALES OF E-VS… 

 

TEXAS, A REPUBLICAN LED STATE, IS THE LATEST STATE TO BEGIN CHARGING HEFTY REGISTRATION FEES… STARTING IN SEPTEMBER THE STATE BEGAN CHARGING ELECTRIC VEHICLE OWNERS A FOUR-HUNDRED DOLLAR FIRST TIME REGISTRATION FEE FOLLOWED BY AN ANNUAL TWO-HUNDRED DOLLAR FEE.

 

ITS NOT WHETHER THE FEES ARE NECESSARY OR NOT, IT IS MORE AGREEING WHAT THE COST OF AN EV REGISTRATION FEE SHOULD BE AND HOW ELSE TO FILL FUNDING GAPS THAT IS BEING DEBATED. DOZENS OF STATES — REGARDLESS OF PARTY LEADERSHIP — HAVE AT SOME SORT OF ANNUAL EV FEE, THOUGH MOST OF THEM ARE SIGNIFICANTLY LOWER THAN $200.

 

PENNSYLVANIA LEGISLATURE, NOT CONTROLLED BY THE GOP, RECENTLY APPROVED A TWO-HUNDRED-AND-NINETY- DOLLAR FEE FOR E-VS…  IN MAY NICK MILLER… FROM  THE ELECTRIFICATION COALITION –  ARGUED THAT ANY EV FEES THAT WERE TOO COSTLY WOULD HURT THE PUSH FOR ELECTRIC VEHICLES IN THE FUTURE.

 

{Nick Miller – Pennsylvania State Policy Lead at the Electrification Coalition}

“To reiterate we agree that all vehicles need to be paying for their use of the roadway but the gas tax diminishing of value, states are searching for a viable alternative for transportation infrastructure funding. However, if a state chooses to levy any EV fee the tax needs to be fair and should be comparable with current ice fuel taxes.”

 

PENNSYLVANIA STATE SENATOR LINDSEY WILLIAMS, A DEMOCRAT WHO VOTED AGAINST THE LEGISLATION SAID THAT WHAT IS ACTUALLY NEEDED TO FILL THE FUNDING GAPS IS A COMPLETE OVERHAUL ON HOW INFRASTRUCTURE IS FUNDED.

 

MEANWHILE, WASHINGTON STATE, LED BY DEMOCRATS CHARGES MORE THAN TWO-HUNDRED DOLLARS ANNUALLY IN EV FEES… A PORTION OF THAT GOES TO THE INSTALLATION OF CHARGING STATIONS IN THE STATE. AND IN FLORIDA, A GOP STATE, A BILL TO APPROVE ANNUAL FEES OF MORE THAN TWO-HUNDRED DOLLARS PASSED THE HOUSE… BUT FAILED IN THE SENATE AFTER A STUDY SHOWED LOWER FEES WOULD BE MORE EQUITABLE.

 

WHILE THERE IS A FOCUS ON ANNUAL FEES TO FILL THE GAPS IN INFRASTRUCTURE FUNDING… OREGON, A DEMOCRAT LED STATE.. HAS IMPLEMENTED A PILOT PROGRAM THAT TRACKS HOW FAR EV OWNERS DRIVE AND CHARGES THEM BASED ON THE DISTANCE THEY TRAVEL IN AN EFFORT TO MAKE UP FOR DECLINING GAS TAX REVENUE. SIMILAR PROGRAMS HAVE SINCE BEEN ADOPTED BY OTHER STATES, INCLUDING UTAH AND VIRGINIA