It’s no news that electric vehicles aren’t just the future of cars but that they’ve come to stay. In the last year alone, the US has recorded a 25% increase in the number of electric vehicles registered in every state. What’s more? A lot of people are becoming open to the idea of owning a vehicle powered by unconventional means. It’s said that the US and even the world could see more electric vehicles than gas vehicles on the roads by the end of the decade.
Just like regular fuel vehicles, electric vehicles have to be registered within your state. The registration process does not differ so much from the general vehicle registration apart from a few extra EV fees in specific locations. In some states, all cars are registered with the Department of Motor Vehicles (DMV) or Bureau of Motor Vehicles. In others, vehicles are registered at the Department of revenue, such as in Tennessee. Regardless of where you go, you’ll have to pay an annual fee to renew your vehicle’s registration.
The amount differs from state to state. Controversially, some states have been increasing registration fees specifically for EV owners.
Increased Fees for Electric Vehicle Owners
One challenge new EV owners encounter is the recent increase in electric vehicle registration fees. Some states now charge higher to register electric vehicles compared to regular gasoline cars. In lieu of the ‘gas tax‘ that EV owners avoid, states have to make up the loss of revenue somewhere.
People who use fuel-powered cars pay a preset tax on gasoline that is used to maintain and build roads. It seems only fair that electric vehicle owners pay some sort of tax as well to keep road maintenance under control. As electric car sales continue to exponentially grow, funds from the previous gas tax will come to a rapid decline. As such, states are making up the lack of funds through increasing electric vehicle registration fees.
Here’s a state by state breakdown of what additional fees you can expect to pay this year:
|Idaho||BEV/PHEV||$140||$75 for PHEVs|
|Indiana||BEV/PHEV||$150||$50 for hybrids and PHEVs|
|Michigan||BEV/PHEV||$135||$235 for vehicles weighing more than 8,000 pounds. $47.50 for hybrid vehicles and $117.50 for PHEVs|
|Mississippi||BEV/PHEV||$150||$75 for hybrids|
|Missouri||BEV/PHEV||$75||$37.50 for PHEVs|
|South Carolina||BEV/PHEV||$120||biennial. $60 biennial for hybrids|
|Utah||BEV/PHEV||$90||$39 for PHEVs and $15 for hybrids|
There is a mixed Public sentiment about the new EV taxes. A part of the general public believes that the government should collect these taxes. The reasoning behind this is that an individual driving a regular fuel vehicle pays a fee for using the road. So since people who drive electric cars use the road as well, they should also pay road maintenance taxes in the name of EV taxes.
Owners of electric vehicles in states like California have expressed their unhappiness with the new EV taxes. They feel that they shouldn’t pay extra taxes even if the additional taxes are lower than the regular fuel vehicle taxes they previously paid in a year. Some believe gas taxes should just be increased to incentivize EV sales further, which are better for the environment.