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Miami Herald
24-05-2025
- Automotive
- Miami Herald
Got an EV? You Might Be Paying New Hidden Fees, Thanks to Congress
If you have listened to the evening news this week, you probably would have known that the U.S. House of Representatives passed the "One Big Beautiful Bill Act" early on Thursday, May 22, right before lawmakers are set to return to their districts. The "beautiful" bill has already drawn a lot of attention due to landmark measures packed into the document, including significant tax reform based on major cuts, Medicaid and SNAP reform, increased immigration spending, and an increase to the national debt ceiling, to name just a few. However, packed into the text of the nearly 1,000-page bill are some measures that will affect American motorists, especially those who seek to free themselves from the crutch of the gas pump. Hidden very deep in the bill's text is an amendment titled Section 10004, or "REGISTRATION FEE ON MOTOR VEHICLES." This amendment states that the federal government will impose annual registration fees of $250 for electric vehicles and $100 for hybrids, which individual states' motor vehicle departments will collect. Lawmakers like Rep. Sam Graves (R-Mo.), the chairman of the influential Transportation and Infrastructure Committee, said after the bill was passed that such a provision would help fund the Highway Trust Fund, the main source of federal highway funding. He argues that as EV ownership increases and drivers adopt more fuel-efficient cars and hybrids, the gas tax could lose its relevance very quickly. "The bill includes provisions from the Transportation and Infrastructure Committee to provide historic investments in the United States Coast Guard to strengthen our national and border security, as well as […] ensuring that electric vehicles begin contributing to the Highway Trust Fund," Graves said. The Highway Trust Fund is funded in part through the gas tax, which is reflected in the price of gasoline and diesel fuel. Currently, the gas tax is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel, a rate that has not been raised since October 1, 1993. Graves originally tabled this provision in the US House of Representatives Transportation and Infrastructure Committee in late April, where it passed and was added onto the "Big Beautiful Bill" after a 36-30 vote. Graves's proposal in the BBB will impose enforcement responsibility on the states. Specifically, states will be charged 25% on top of the calculated amount of funding they were expected to bring into the Highway Trust Fund if their motor vehicles departments do not collect the respective EV and hybrid fees. "The Administrator shall withhold, from amounts required to be apportioned to any State under section 104(b), an amount equal to 125 percent to the amount required to be remitted under subsection (c)(2)," the bill says. "The Administrator shall withhold the amount on the first day of each fiscal year beginning after September 30, 2026, in which the State does not meet the requirements of subsection (c)." This is not the first time that congressional lawmakers have proposed some sort of "fairness" fee targeted at EV owners. In February 2025, Senator Deb Fischer (R-NE) introduced the Fair Sharing of Highways and Roads for Electric Vehicles (Fair SHARE) Act, which would add a $1000 fee to EVs at the time of purchase, aimed at recouping around 10 years' worth of federal gas tax revenue per car. However, it should be noted that this sort of doctrine has already been enforced at the state level. According to the National Conference of State Legislatures (NCSL), 39 states have a special registration fee for EVs to recuperate lost gas tax funding. For example, EV drivers in New Jersey, which has reached nearly 200,000 strong as of December 2024, will have to pay a $250 annual electric vehicle fee in addition to their registration fee. This fee will increase by $10 per year for four years and exceed $290 starting in 2028. New Jersey's yearly EV registration tax proceeds will fund the state's trust fund for transportation projects and NJ Transit. It should be noted that this provision affecting EV and Hybrid drivers is sandwiched in the BBB along with dozens of other amendments affecting critical programs such as Medicaid and SNAP, as well as raising the debt ceiling. According to Politico, several Republican Senators say they'll be making changes to the BBB, as many of the provisions could affect constituents in their states. Politics aside, looking at the numbers, it is easy to see how the shift from traditional to alternative fuels could upend decades-old rules and legislation, especially regarding the gas tax and the Highway Trust Fund. However, finding a straight-line solution will require a lot of time, work, and understanding of EVs and the needs of EV buyers by our leaders. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
E&E News
23-05-2025
- Automotive
- E&E News
New EV fees won't fix highway funding problems — and could ding transit
Electric vehicle and hybrid car fees included in the Republicans' sprawling party-line bill would be the first new revenue dedicated to the Highway Trust Fund in 30 years. But there's a catch, experts and lawmakers say. The fees would go only part of the way toward closing the fund's massive spending gap. And, as currently written, the legislation would direct the money only to highway projects, to the exclusion of transit. Historically, 80 percent of the fund's money has gone to highways and 20 percent to transit. Advertisement Republicans — and the construction industry — are optimistic about securing a long-term solution to pay for the nation's aging roads. But public transportation advocates and some Democrats are worried that buses, rail and ferries will be left at the station.
Auto Blog
06-05-2025
- Automotive
- Auto Blog
New Federal EV Fee Could Cost Owners More Than Twice the Average Gas Tax
A new bill could put a dent in EV drivers' savings Transportation and Infrastructure Committee Chair Sam Graves, who is also a Congressman representing the 6th District of Missouri, has proposed a federal bill that would require electric vehicle (EV) drivers to pay a yearly registration fee of $250 and hybrid owners to cough up $100 annually, according to Reuters. The suggested annual EV registration fee, which essentially operates as a tax, is based on a Federal Highway Administration estimation that the average American uses about 550 gallons of gas per year, according to InsideEVs. However, the current federal gas tax is 18.4 cents per gallon, which comes out to about $101 when multiplied by 550, so there's a significant discrepancy with the fee for all-electric models, even if you go with the bill's initial suggestion of charging electric car owners $200 yearly. In other words, if the bill passes, EV owners would be paying an annual registration fee more than twice the average gas tax or the equivalent of the $0.184 tax on 1,389 gallons of gasoline. A proposed $20 annual fee for all drivers that was part of the bill was dropped. Porsche Taycan — Source: Porsche The bill suggests that the $250 EV and $100 hybrid registration fees would generate around $40 billion over the next decade for the Highway Trust Fund (HTF), which pays for a variety of transportation infrastructure projects, Benzinga reports. 'By leveraging states' existing registration systems, the bill assesses an annual registration fee of $250 on EVs and $100 on hybrids (which currently pay a lesser share into the HTF) to ensure they pay for their use of the nation's roads and bridges. Together, these new user fees are expected to increase federal revenues by a conservative estimate of more than $38B over 10 years, all of which will be deposited into the HTF,' Transportation and Infrastructure Committee Chair Sam Graves said in an interview with Design News. Consumer Reports notes that seniors, who drive far fewer miles than the average American, would have to pay almost six times the amount of driving the average new car getting 28 MPG. While hybrid owners wouldn't pay as much as EV owners, they would still face an annual fee roughly twice the amount they would pay in federal vehicle gas taxes when driving a less fuel-efficient internal combustion engine (ICE) model. Seniors driving hybrids would have a yearly fee three times that of a gas-powered car. The Transportation and Infrastructure Committee's bill also includes inflation adjustments for the annual EV and hybrid fee but doesn't include inflation adjustments for ICE vehicles. The committee reviewed the bill on Wednesday before it heads to the House Budget Committee. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Final thoughts The Transportation and Infrastructure Committee is right to consider changes to fuel taxes, which haven't been updated since 1993, considering that funding for the Highway Trust Fund has declined since around 2008. Just in 2024, the fund faced a deficit of $20.6 billion. While fuel tax revenues haven't been keeping pace with the increased adoptions of EVs, the revenues haven't experienced any adjustments for inflation, and EV owners appear to be picking up all the slack. EV drivers will also have to pay this significantly higher $250 fee upfront at registration instead of incrementally, like ICE owners would.
Boston Globe
05-05-2025
- Automotive
- Boston Globe
Republicans say EVs don't pay their fair share. Here's the math.
'It overburdens one particular group of vehicles and consumers,' said Ben Prochazka, executive director of the Electrification Coalition, a nonprofit group that promotes EVs. 'And frankly it won't solve the problem because it won't generate enough revenue.' Advertisement Republicans counter that EV owners don't pay the federal gas tax, a major source of revenue for the Highway Trust Fund, which covers the costs of road repairs nationwide. The federal gas tax hasn't been raised since 1993 or adjusted for inflation. At the same time, EV adoption has increased, and gas cars have become more fuel-efficient, drying up revenue. The Highway Trust Fund is projected to become insolvent by 2028 unless Congress intervenes. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up 'For far too long, EVs have operated on our nation's roads without paying into this system,' said Rep. Sam Graves (R-Missouri), who chairs the House Transportation and Infrastructure Committee. 'Plain and simple, this is a fairness issue, and it's time these roadway users pay their share for the use of the road.' Advertisement Rep. Bruce Westerman (R-Arkansas), who chairs the House Natural Resources Committee, also framed the measure as a matter of fairness. 'There's zero tax on the EVs,' Westerman said. 'They're paying nothing to use the infrastructure. EVs drive for free on the roads, whereas if you're driving an internal combustion engine vehicle, every time you fill up, you're putting money into the Highway Trust Fund.' The proposal comes as EVs face increasing headwinds. Congressional Republicans are likely to revoke the federal tax credit of up to $7,500 for new EV purchases. At the same time, the Trump administration has ordered a halt to a nationwide EV charging program and moved to repeal tailpipe emissions rules that would have pushed automakers to make more EVs. The Transportation Committee voted last week to approve the proposal, which would also impose an annual $100 fee on drivers of hybrid vehicles. If enacted, these fees could help raise more than $38 billion over the next decade, according to committee aides. But according to calculations by Consumer Reports, the $250 fee is more than double what the owner of even the most gas-guzzling vehicle would pay in fuel taxes - and more than triple the amount paid by the average new gas car driver. At a federal gas tax rate of 18.4 cents per gallon, a new gas car getting 28 miles per gallon and driving around 11,000 miles a year would pay $73 annually into the Highway Trust Fund. 'EV drivers want to pay their fair share,' said Ingrid Malmgren, senior policy director for Plug In America, a group that advocates for EV drivers. 'But they don't want to be punished.' Advertisement Regardless of what Congress decides, at least 39 states have already imposed registration fees on residents who drive EVs, according to the National Conference of State Legislatures. Those fees vary widely. In some states, such as Texas, the EV fee is $120 more than the equivalent gas tax levied by the state. In others, such as California, EV drivers pay $170 less than the equivalent gas tax. EV fees far outstrip the gas tax in several states that typically elect Republicans, including Arkansas, Tennessee, Texas and Wyoming. But this phenomenon also persists in some blue states, such as New Jersey, which began charging EV drivers a $250 fee last year. The Transportation Committee initially planned a $200 annual fee for EV drivers and a $20 annual fee for drivers of gas cars. But the panel eventually increased the fee on EV drivers and abandoned the tax on gas car drivers altogether due to opposition from some Republicans. 'It's easy to pick on a small minority,' said Chris Harto, senior policy analyst at Consumer Reports, noting that EV drivers represent just 2 percent of drivers on the road. 'But this is a much bigger problem and needs a much bigger solution.'
Washington Post
05-05-2025
- Automotive
- Washington Post
Republicans say EVs don't pay their fair share. We did the math.
Driving an electric vehicle could get more expensive if congressional Republicans have their way. GOP lawmakers have proposed levying an annual $250 fee on EV owners as part of President Donald Trump's 'big, beautiful bill' on taxes, immigration, energy and defense. They argue that the fee would help offset the cost of extending Trump's expiring 2017 tax cuts. Yet the proposal is stirring controversy on and off Capitol Hill, with climate advocates calling it a punitive tax on EV owners — one that is far pricier than the fee paid by owners of gasoline-powered cars. 'It overburdens one particular group of vehicles and consumers,' said Ben Prochazka, executive director of the Electrification Coalition, a nonprofit group that promotes EVs. 'And frankly it won't solve the problem because it won't generate enough revenue.' Republicans counter that EV owners don't pay the federal gas tax, a major source of revenue for the Highway Trust Fund, which covers the costs of road repairs nationwide. The federal gas tax hasn't been raised since 1993 or adjusted for inflation. At the same time, EV adoption has increased and gas cars have become more fuel-efficient, drying up revenue. The Highway Trust Fund is projected to become insolvent by 2028 unless Congress intervenes. 'For far too long, EVs have operated on our nation's roads without paying into this system,' said Rep. Sam Graves (R-Missouri), who chairs the House Transportation and Infrastructure Committee. 'Plain and simple, this is a fairness issue, and it's time these roadway users pay their share for the use of the road.' Rep. Bruce Westerman (R-Arkansas), who chairs the House Natural Resources Committee, also framed the measure as a matter of fairness. 'There's zero tax on the EVs,' Westerman said. 'They're paying nothing to use the infrastructure. EVs drive for free on the roads, whereas if you're driving an internal combustion engine vehicle, every time you fill up, you're putting money into the Highway Trust Fund.' The proposal comes as EVs face increasing headwinds. Congressional Republicans are likely to revoke the federal tax credit of up to $7,500 for new EV purchases. At the same time, the Trump administration has ordered a halt to a nationwide EV charging program and moved to repeal tailpipe emissions rules that would have pushed automakers to make more EVs. The Transportation Committee voted last week to approve the proposal, which would also impose an annual $100 fee on drivers of hybrid vehicles. If enacted, these fees could help raise more than $38 billion over the next decade, according to committee aides. But according to calculations by Consumer Reports, the $250 fee is more than double what the owner of even the most gas-guzzling vehicle would pay in fuel taxes — and more than triple the amount paid by the average gas car driver. At a federal gas tax rate of 18.4 cents per gallon, a new gas car getting 28 miles per gallon and driving around 11,000 miles a year would pay $73 annually into the Highway Trust Fund. 'EV drivers want to pay their fair share,' said Ingrid Malmgren, senior policy director for Plug In America, a group that advocates for EV drivers. 'But they don't want to be punished.' Regardless of what Congress decides, at least 39 states have already imposed registration fees on residents who drive EVs, according to the National Conference of State Legislatures. Those fees vary widely. In some states, such as Texas, the EV fee is $120 more than the equivalent gas tax levied by the state. In others, such as California, EV drivers pay $170 less than the equivalent gas tax. EV fees far outstrip the gas tax in several states that typically elect Republicans, including Arkansas, Tennessee, Texas and Wyoming. But this phenomenon also persists in some blue states, such as New Jersey, which began charging EV drivers a $250 fee last year. The Transportation Committee initially planned a $200 annual fee for EV drivers and a $20 annual fee for drivers of gas cars. But the panel eventually increased the fee on EV drivers and abandoned the tax on gas car drivers altogether due to opposition from some Republicans. 'It's easy to pick on a small minority,' said Chris Harto, senior policy analyst at Consumer Reports, noting that EV drivers represent just 2 percent of drivers on the road. 'But this is a much bigger problem and needs a much bigger solution.'
