Electric vehicle owners may face a new registration tax of $130 per year if a proposed House bill becomes law. The tax would apply to electric vehicles (EVs) and plug-in hybrids (PHEVs), with fees increasing every other year starting in 2029. This measure is part of the five-year Surface Transportation Reauthorization, which prioritizes maintaining roads, bridges, and rail lines.
The proposed tax is expected to raise revenue for road maintenance, but environmental groups have expressed concerns that it will limit access to affordable transportation options. The bill has been hailed as 'bipartisan' due to its collaborative effort between Representatives Sam Graves and Rick Larsen, but it's likely to face opposition from Democrats.
Under the proposed tax, EV owners would pay $130 per year, while PHEV owners would pay $35. The fees would increase by $5 every other year starting in 2029, with a cap of $150 for EVs and $50 for PHEVs.
The average consumer pays $264 per year in gas taxes, which translates to driving 12,000 miles in a vehicle with 23.6 mpg. The proposed tax is seen as a way to redistribute the burden of road maintenance costs from all drivers to those who choose to own EVs.
Environmental groups have criticized the measure, arguing that it will punish EV owners for choosing a technology that protects households from volatile fossil fuel prices and supports US energy security.
The Electrification Coalition has expressed concerns that the bill will limit access to reliable, affordable, and convenient transportation options. The organization also points out that the bill would reduce funding for the Charging and Fueling Infrastructure program by $1.5 billion.
Furthermore, the National Electric Vehicle Infrastructure (NEVI) program, which subsidizes the national EV charging network, is not reauthorized under the proposed tax. This could lead to a reduction in access to public charging stations for EV owners.
The lack of a Senate version of the transportation bill yet raises concerns that the measure may need to change significantly to pass both houses of Congress. s warn that any changes would be necessary to address environmental and economic concerns.
Overall, the proposed tax on EV registration is a contentious issue that highlights the ongoing debate between environmental groups and industry stakeholders over the future of transportation policy.
The new tax is a concern for environmental groups and s, who argue it will limit access to affordable transportation options.
