Brief Special Fees on Plug-In Hybrid and Electric Vehicles

The total number of plug-in electric vehicles sold in the U.S. is estimated at 1.6 million, including more than 164,000 cars sold during the first eight months of 2020. However, plug-in electric vehicle sales in 2020 have so far been markedly lower than sales in 2018 and 2019, likely due to the economic slowdown driven in part by the ongoing COVID-19 pandemic. Roughly 320,000 plug-in electric vehicles were sold in 2019. Sales in 2019 were comparable, but just under those for 2018—a year that saw more electric vehicle (EV) sales in the U.S. market than any other.

EV sales represent less than 2% of all light-duty car sales in the United States, but as sales increase, some states are concerned increased EV adoption will lower gasoline tax revenues. The repairs and improvements to the nation’s highways traditionally have been funded primarily through federal and state taxes collected at the pump. Because electric vehicles do not require gasoline to operate, they do not contribute to the upkeep of highways through a gas tax.

Many states face declining gas tax revenue—not only because of electric vehicles—forcing state policymakers to consider other ways to pay for the nation’s transportation infrastructure. One growing policy trend is applying a separate registration fee for certain hybrid or electric vehicles. These fees come in addition to standard motor vehicle registration fees and proponents support the fees to bring equity among drivers by ensuring all drivers pay for using roadways.

States With Fees on Plug-In Hybrid and/or Electric Vehicles

Alabama

• Traditional fees (Alabama Department of Revenue)
  • $15-23 annual standard fee.
  • $50 annual additional fee.
  • Additional ad valorem tax and local fees apply.
• EV fees (Ala. Code § 40-12-242 /HB 2 (2019))
  • $200 additional annual fee for battery electric vehicles (BEVs).
  • $100 additional annual fee for plug-in hybrid vehicles (PHEVs).
  • Starting in 2023, the fee will increase by $3 every four years.
  • The fees will be reduced by any forthcoming federal fee or surcharge up to $50 per year for BEVs and $25 for PHEVs provided those federal fees are used for highway transportation purposes in the state.
• Total fees
  • Annual fees of $265-$273 for battery electric vehicles in addition to all other fees and taxes.
  • Annual fees of $165-$173 for plug-in hybrid vehicles in addition to all other fees and taxes.

EV Definitions:

• “Battery electric vehicle” means a vehicle powered only by electricity.
• “Plug-in hybrid electric vehicle” means a vehicle with a hybrid propulsion system that operates on both combustible fuel and stored electric energy.

EV Fee Distribution:

• The first $150 of fee revenues from BEVs and first $75 of fee revenues from PHEVs is allocated as follows:
  • 66.67% to the state.
  • 25% to counties.
  • 8.33% to cities.
• The remainder is deposited into the Rebuild Alabama Fund, which funds electric vehicle charging infrastructure through the Electric Transportation Infrastructure Grant Program until total registrations of BEVs and PHEVs exceed 4% of total vehicle registrations. Once this threshold is reached, fees drop to $150/year for BEVs, $75 for PHEVs with revenues divided between the state, counties, and cities as noted above to fund construction, maintenance and repair of public roads, highways and bridges, and for any other purpose for which the Rebuild Alabama Fund may lawfully be used.

Arkansas

• Traditional fees (Arkansas Department of Motor Vehicles Registration Fee Schedule)
  • Annual registration fees are dependent on vehicle weight
    • $17 for vehicles 3,000 pounds or less.
    • $25 for vehicles over 3,000 pounds but less than 4,500 lbs.
    • $30 for vehicles more than 4,500 lbs.
  • Additional validation decal fee may apply
• EV fees (Ark. Stat. Ann. § 27-14-614 /SB 336 (2019))
  • $200 additional annual fee for electric vehicles.
  • $100 additional annual fee for hybrid vehicles.
• Total fees
  • Annual fees of $217, $225 or $230 for electric vehicles depending on vehicle weight in addition to all other fees.
  • Annual fees of $117, $125 or $130 for hybrid vehicles depending on vehicle weight in addition to all other fees.

EV Definitions:

• “Electric vehicle” means a vehicle powered only by electricity;
• “Hybrid vehicle” means a vehicle with a hybrid propulsion system that operates on both traditional fuel and stored electricity.

EV Fees Distribution:

• Revenues are considered “special revenues,” distributed to the State Highway and Transportation Department Fund.

California

• Traditional fees (Cal. Veh. Code § 9250; California Department of Motor Vehicles)
  • The state implements a number of registration-related fees.
  • Base annual registration fee of $53.
  • Transportation Improvement fee of $27 to $188 based on vehicle value.
• EV fees (Cal. Veh. Code § 9250.6/SB 1 (2017))
  • $100 additional annual fee for a zero-emission vehicles model year 2020 or later.
  • Effective January 2021 and every year after, the fee will increase in accordance with the consumer price index.
• Total fees
  • Annual fees of $153 in addition to all other fees, including a Transportation Improvement fee.

EV Definitions:

• “Zero-emission vehicle” means a vehicle that produces no emissions of criteria pollutants, toxic air contaminants or greenhouse gases when stationary or operating, as determined by the state Air Resources Board (subdivision (d) of Section 44258 of the Health and Safety Code).

EV Fees Distribution:

• Following deductions from DMV administrative costs, revenues are deposited into the Road Maintenance and Rehabilitation Account.

Colorado

• Traditional fees (Colo. Rev. Stat. § 42-3-306; Colorado Department Revenue)
  • Annual registration fees are based on vehicle weight and type.
• EV fees (Colo. Rev. Stat. §42-3-304(25)(a)/HB 1110 (2013).
  • $50 additional annual fee for plug-in electric motor vehicles.
• Total fees
  • Annual fees include the $50 annual fee in addition to traditional registration fees, which vary by vehicle weight and type.

EV Definitions:

• “Plug-in electric motor vehicle” means a motor vehicle that qualifies under the federal definition (26 U.S.C. sec. 30D). It also includes any motor vehicle that is propelled by a rechargeable battery pack capable of being recharged from any external source of electricity. Colo. Rev. Stat. §42-1-102.

EV Fee Distribution:

• 60% of fee revenues ($30 of $50 additional fee) are deposited into the Highway Users Tax Fund.
• 40% of fee revenues ($20 of $50 additional fee) are deposited into the Electric Vehicle Grant Fund, which administers grants to install charging stations and to offset station operating costs.

Georgia

• Traditional fees (Ga. Code Ann. §40-2-151)
  • $20 annual registration fee for passenger vehicles
• EV fees (Ga. Code Ann. §40-2-151(19)(A)(i)/HB 170 (2015)).
  • The current additional annual fees reflect a statutory base fee that is automatically adjusted according to a statutory formula (effective July 2016). The fees are applicable to vehicles registered July 1, 2019, and later are as follows:
    • $212.78 for noncommercial alternative fueled vehicles ($200 base fee).
• Total fees
  • Annual fees of $232.78 for noncommercial alternative fueled passenger vehicles.

EV Definitions:

• “Alternative fueled vehicle” means any vehicle fueled solely by an alternative fuel, including electricity. The fees do not apply to hybrid vehicles unless the hybrid vehicle owner elects to use an alternative fuel vehicle license plate.

EV Fee Distribution:

• Revenues must be used exclusively for “transportation purposes,” including roads, bridges, public transit, rails, airports, buses, seaports; accompanying infrastructure and services necessary to provide access to these facilities; and paying general obligation debt and other multiyear financing obligations.

Hawaii

• Traditional fees (Hawaii Rev. Stat. §249-31)
  • $45 annual registration fee.
  • Additional vehicle weight taxes apply.
• EV fees (Hawaii Rev. Stat. §249-31/SB 409 (2019)).
  • $50 annual surcharge for electric vehicles.
• Total fees
  • Annual fees of $95 in addition to other taxes.

EV Definitions:

• N/A

EV Fee Distribution:

• Revenues are deposited into the State Highway Fund.

Idaho

• Traditional fees (Idaho Code §49-402; Idaho Department of Motor Vehicles)
  • Annual registration fees depend on the age of the vehicle.
    • $69 annual registration fee for vehicles 1-2 years old.
    • $57 annual registration fee for vehicles 3-4 years old.
    • $45 annual registration fee for vehicles 7 or more years old.
• EV fees (Idaho Code §49-457/HB 312 (2015)/ HB 20 (2017))

• • $140 additional annual fee for all-electric vehicles.
  • $75 additional annual fee for plug-in hybrid vehicles.
• Total fees
  • Annual fees of $209, $197 or $185 for all-electric vehicles.
  • Annual fees of $144, $132 or $129 for plug-in hybrid vehicles.

EV Definitions:

• “Electric vehicle” means a vehicle powered only by electricity.
• “Plug-in hybrid vehicle” means a motor vehicle with a hybrid propulsion system that operates on both electricity supplied through a rechargeable battery and traditional fuel.

EV Fee Distribution:

• All fees deposited into the Highway Distribution Account as follows:
  • 40% to localities for construction and maintenance of highways and bridges and to fund requirements on unpaid bonds.
  • 60% to the state highway account for construction and improvement of state highways.

Illinois

• Traditional fees (625 ILCS 5 3-806)
  • $148 annual registration fee.
  • $1 surcharge deposited into the State Police Vehicle Fund.
  • $2 surcharge deposited into the Park and Conservation Fund.
• EV fees (625 ILCS 5 3-805/SB 1939 (2019)
  • $100 additional annual fee for electric vehicles.
  • Before 2020, the electric vehicle registration fee could not exceed a $35 biennial rate, or $18 per year. Beginning Jan. 1, 2020, the registration fee for electric vehicles will equal those for traditional motor vehicles.
• Total fees
  • Annual fees of $251 for electric vehicles.

EV Definition:

• “Electric vehicle” is defined as a vehicle that is 8,000 pounds or less and is propelled by an electric engine and does not use motor fuel.

EV Fee Distribution:

• $1 of the additional fee is allocated to the Secretary of State Special Services Fund and the remainder deposited into the Road Fund.

Indiana

• Traditional fees (Ind. Code Ann. § 9-18.1-5-2; Indiana Bureau of Motor Vehicles)

• • $21.35 registration fee.
  • $15 Transportation Infrastructure Improvement Fee.
  • Additional taxes may apply.

• EV fees (Ind. Code Ann. § 9-18.1-5-12/HB 1002 (2017))

• • $150 additional annual fee for all-electric vehicles.
  • $50 additional annual fee for hybrid vehicles.
  • The fee is indexed to the same inflation mechanism as the motor fuel tax.
• Total fees
  • Annual fees of $86.35 for hybrid vehicles in addition to all other fees.
  • Annual fees of $186.35 for all-electric vehicles in addition to all other fees.

EV Definitions:

• “Electric vehicle” means a vehicle that is propelled by an electric motor powered by a battery or other electrical device and does not have a combustion engine.
• “Hybrid vehicle” means a vehicle that is capable of being powered with energy from both an internal combustion engine and an energy storage device, and also uses a regenerative braking system.

EV Fee Distribution:

• Revenues are deposited into the Local Road and Bridge Matching Grant Fund for projects undertaken by local units to repair/increase road and/or bridge capacity.

Iowa

• Traditional fees (Iowa Code Ann. §321.109; Iowa Taxes and Tags)
  • Based on vehicle weight and a percentage of the vehicle list price based on the vehicle’s age.
    • 40 cents per 100 pounds of vehicle weight; and
    • Fee of 1% of the list price if the vehicle is 1-7 model years old; or
    • Fee of .75% of the list price If the vehicle is 8-9 model years old; or
    • Fee of .5% of the list price if the vehicle is 10-11 model years old; or
    • Fee of $50 if the vehicle is 12 or more model years old.
• EV fees (SF 767 (2019))
  • $65 additional annual fee for battery electric vehicles (BEVs).
  • $32 additional annual fee for plug-in hybrid electric motor vehicles (PHEVs).
  • In 2021, the fee increases to $97 for BEVs and $48.75 for PHEVs.
  • In 2022, the fee increases to $130 for BEVs and $65 for PHEVs.
• Total fees
  • Annual fees include EV fees in addition to applicable registration fees.

EV Definitions:

• “Battery electric vehicles” are defined as those “equipped with electrical drivetrain components and not equipped with an internal combustion engine, that are propelled exclusively by one or more electrical motors using electrical energy stored in a battery or other energy storage device that can be recharged by plugging into an electrical outlet or electric vehicle charging station.”
• “Plug-in hybrid electric vehicles” are defined as those “equipped with electrical drivetrain components, an internal combustion engine, and a battery or other energy storage device that can be recharged by plugging into an electrical outlet or electric vehicle charging station.”

EV Fee Distribution:

• Revenues are deposited into the Road Use Tax Fund. Iowa Code Ann § 321.145.

Kansas

• Traditional fees (Kan. Rev. Stat. § 8-143)
  • $30 or $40 depending on weight.
  • Additional county fees apply.
• EV fees (Kan. Rev. Stat. § 8-143; HB 2214 (2019))
  • $100 total annual registration fee for all-electric vehicles.
  • $50 total annual registration fee for electric hybrid and plug-in electric hybrid vehicles.
• Total fees
  • Because the state’s EV fees are total, not additional, electric and hybrid vehicles are not charged a separate or passenger vehicle registration fee, but instead are charged an increased fee of $100 for all-electric vehicles and $50 for hybrid electric vehicles.

EV Definitions:

• “Electric vehicle” means a vehicle that is powered by an electric motor drawing current from rechargeable storage batteries or other portable electrical energy storage devices, provided the energy must be drawn from a source off the vehicle, such as an electric vehicle charging station.

EV Fee Distribution:

• The majority of fee revenues are deposited into the State Highway Fund. Kan Stat. Ann. § 8-145.

Louisiana

• Traditional fees (La. Stat. tit. 32 § 728)
  • $68.50 title fee paid at the time of registration.
  • License plate registration fees (every two years) of at least $20, based on purchase price of the vehicle.
• EV fees (Louisiana HB 1031/ La. Stat. tit. 32 § 461)
  • $110 additional annual fee for electric vehicles.
  • $60 additional annual fee for hybrid vehicles.
  • These fees are effective January 1, 2023.
• Total fees
  • Fees of at least $198.50 for electric vehicles in addition to other applicable taxes.
  • Fees of at least $148.50 for hybrid vehicles in addition to other applicable taxes.

EV Definitions:

• "Electric vehicle" shall mean a vehicle which is powered by one or more electric motors or energy stored in rechargeable batteries for propulsion.
• "Hybrid vehicle" shall mean a vehicle that uses gasoline, diesel fuel, or special fuels in combination with an electric motor for propulsion.

EV Fee Distribution:

• Per La. Stat. tit. 32 § 461, 70% of the tax proceeds will go toward road and bridge projects slated in the Department of Transportation’s Highway Priority Program. The remaining 30% will be deposited into the Parish Transportation Fund for use by local governments.

Michigan

• Traditional fees (Mich. Comp. Laws Ann. §257.801; Michigan Office of the Secretary of State)
  • Vehicles with a model year of 1984 or newer pay registration fees based on the manufacturer’s suggested retail price.
  • Additional fees may apply.
• EV fees (Mich. Comp. Laws Ann. §257.801(7)/ HB 4736 (2015))
  • Michigan indexes its EV fees based on the motor vehicle fuel tax. Each 1 cent fuel tax increase above 19 cents increases the BEV annual fee by $5 and the PHEV annual fee by $2.50. The current fees, calculated using a 26.3 cent per gallon gasoline motor vehicle fuel tax, are as follows:
  • $135 additional annual fee for “electric vehicles,” or BEVs, up to 8,000 pounds ($100 base fee).
  • $47.50 additional annual fee for certain PHEVs up to 8,000 pounds ($30 base fee).
  • $235 additional annual fee for “electric vehicles,” or BEVs over 8,000 pounds ($200 base fee).
  • $117.50 additional annual fee for certain PHEVs over 8,000 pounds ($100 base fee).
• Total fees
  • Annual fees include the EV fees in addition to traditional fees, which vary depending on vehicle price.

EV Definitions: (HB 5313, 2020, effective 9/29/2020)

• “Plug-in hybrid electric vehicle” means a vehicle that can use batteries to power an electric motor and use another fuel, such as gasoline or diesel, to power an internal combustion engine or other propulsion source, and that may use electricity from the grid to run the vehicle some or all of the time. Previously referred to as “hybrid electric vehicle.”
• “Electric vehicle” means a vehicle that is propelled solely by electrical energy and that is not capable of using gasoline, diesel fuel or alternative fuel to propel the vehicle. Previously referred to as “nonhybrid electric vehicle.”

EV Fee Distribution:

• Some revenues are deposited into the Michigan Transportation Fund for road maintenance carried out by cities, villages and counties.
• Other revenues are deposited into the Scrap Tire Regulation Fund.

Minnesota

• Traditional fees (Minn. Stat. Ann. §168.013)
  • $10 plus 1.25% of the vehicle’s base value.
• EV fees (Minn. Stat. Ann. §168.013/HF 3 (2017))
  • $75 additional annual fee for nonhybrid, “all-electric” vehicles.
• Total fees
  • Annual fees of $85 in addition to 1.25% of the vehicles base value for all-electric vehicles.

EV Definitions:

• "All-electric vehicle" means an electric vehicle that is powered solely by an electricity supplied through a rechargeable storage battery, fuel cell or other portable source of electrical current. The definition excludes plug-in hybrid electric vehicles.

EV Fee Distribution:

• Revenues are deposited into the Highway User Tax Distribution Fund.

Mississippi

• Traditional fees (Miss. Code Ann. §§27-19-5)
  • $15 private passenger carriers’ tax.
  • Also subject to an ad valorem tax at the time of registration.
• EV fees (Miss. Code Ann. §§27-19-21; 23/HB 1 (2018 First Extraordinary Session)
  • $150 additional annual fee for electric vehicles.
  • $75 additional annual fee for hybrid vehicles.
  • Beginning July 1, 2021, fees will be indexed to inflation.
• Total fees
  • Annual fees of $165 for electric vehicles in addition to other applicable taxes.
  • Annual fees of $90 for hybrid vehicles in addition to other applicable taxes.

EV Definitions:

• “Electric vehicle” means a vehicle that is used primarily for use on public roads that is powered solely by electricity supplied from a rechargeable battery, fuel cell or other portable source of electricity and required to have a license tag under Miss. Code Ann. §§27-19-1 et seq.
• “Hybrid vehicle” means a vehicle that is used primarily on public roads that is propelled by at least two forms of and is required to have a license tag under Miss. Code Ann. §§27-19-1 et seq.

EV Fee Distribution:

• Revenues are apportioned for the same purposes and in the same proportion as specified for gasoline and diesel fuel taxes during the previous state fiscal year and such funds must be used solely for the repair and maintenance of roads, streets and bridges.

Missouri

• Traditional fees (Mo. Rev. Stat. §301.055; Missouri Department of Revenue)
  • $18.25 for a vehicle with a taxable horsepower of under 12 up to $51.25 for a vehicle with a taxable horsepower of over 72.
  • Registration fees are assessed according to the vehicle’s taxable horsepower.
  • Additional processing fees apply.
• EV fees (Mo. Ann. Stat. §142.869/SB 619 (1998)).
  • $75 additional annual fuel decal fee for alternative fueled passenger motor vehicles up to 18,000 lbs.
  • $37.50 additional annual fee for plug-in electric hybrid vehicles.
• Total fees
  • Annual fees of $93.25 up to $126.25 for alternative fueled passenger vehicles, depending on the vehicle’s taxable horsepower.
  • Annual fees of $55.75 up to $88.75 for plug-in electric hybrid vehicles, depending on the vehicle’s horsepower.

EV Definitions:

• “Plug-in electric hybrid” means any model year 2018 or newer hybrid vehicle that has not been modified and is equipped with an internal combustion engine and batteries that can be recharged by connecting to an electric power source.
• “Alternative fuel” means electricity, liquefied petroleum gas (propane), compressed natural gas, or a combination of liquefied petroleum gas and a compressed natural gas or electricity used in an internal combustion engine or motor.

EV Fee Distribution:

• Revenues are deposited into the State Highway Fund.

Nebraska

• Traditional fees (Neb. Rev. Stat. §60-3,190; Neb. Rev. Stat. §60-3,140; Nebraska Department of Motor Vehicles)
  • $15 annual registration fee.
  • Additional taxes and fees are collected at the time of registration.
• EV fees Neb. Rev. Stat. §60-3,191/LB 289 (2011)
  • $75 additional annual fee for alternative fuel vehicles.
• Total fees
  • Annual fees of $90 for alternative fuel vehicles in addition to all other annual fees and taxes.

EV Definitions:

• “Alternative fuel” includes vehicles powered by electricity, solar power and any other source of energy not otherwise taxed under the motor fuel laws. Alternative fuel does not include motor vehicle fuel, diesel fuel or compressed fuel. See Neb. Rev. Stat. §60-306.

EV Fee Distribution:

• Revenues deposited into the Highway Trust Fund.

North Carolina

• Traditional fees (N.C. Gen. Stat. §20-87)
  • $36 annual registration fee.
• EV fees (N.C. Gen. Stat. §20-87(13)/SB 402 (2013)/ HB 97 (2015)).
  • $130 additional annual fee for plug-in electric vehicles.
• Total fees

• • Annual fees of $166 for plug-in electric vehicles.

EV Definitions:

• “Plug-in electric vehicle” means a motor vehicle used primarily on public roads that is powered by electricity supplied by a rechargeable battery with a capacity of at least 4 kilowatt-hours , has not been modified, and does not exceed 8,500 lbs.

EV Fee Distribution:

• 85% of revenues are deposited into the Highway Fund to supports existing transportation system, including resurfacing highways, replacing bridges, paving secondary roads.
• 15% of revenues are deposited into the Highway Trust Fund.

North Dakota

• Traditional fees (N.D. Cent. Code § 39-04-19)
  • $93 annual fee for vehicles greater than 3,200 pounds, but less than 4,500 pounds for the first six years of registration.
  • Fees vary depending on the year of registration and the weight of the vehicle.
• EV fees (N.D. Cent. Code § 39-04-19.2/SB 2061 (2019)).
  • $120 additional annual road use fee for electric vehicles.
  • $50 additional annual road use fee for plug-in hybrid vehicles.
• Total fees
  • Annual fees of $143 for plug-in hybrids, which varies depending on vehicle weight and year of registration.
  • Annual fees of $213 for electric vehicles, which varies depending on vehicle weight and year of registration.

EV Definitions:

• “Electric vehicle” means a vehicle powered only by electricity.
• “Plug-in hybrid vehicle” means a vehicle with a hybrid propulsion system using an internal combustion engine and a chargeable energy storage device.
• “Electric motorcycle” means a vehicle with a saddle for the rider and no more than three wheels, powered only by electricity.

EV Fee Distribution:

• Revenues are deposited into the highway tax distribution fund.

Ohio

• Traditional fees (Ohio Bureau of Motor Vehicles)
  • $31 annual registration renewal fee.
• EV fees (Ohio Rev. Code § 4503.10/HB 62 (2019))
  • $200 additional annual fee for plug-in electric motor vehicles.
  • $100 additional annual fee for hybrid motor vehicles.
• Total fees
  • Annual fees of $231 for plug-in electrics.
  • Annual fees of $131 for hybrid vehicles.

EV Definitions:

• “Plug-in electric motor vehicle” means a vehicle powered wholly or in part by a rechargeable battery.
• “Hybrid motor vehicle” means a vehicle with a hybrid propulsion system including a combustion engine and stored electricity.

EV Fee Distribution:

• 55% of revenues are deposited into the highway operating fund;
• 45% of revenues are deposited into the gasoline excise tax fund and are allocated as follows:
  • 19.3% to municipalities.
  • 16.7% to counties.
  • 9% to townships.

Oklahoma

• Traditional Fees
  • Annual registration fees vary based on how long a vehicle has been registered in the state, decreasing over time:
    • 1st through 4th year: $96
    • 5th through 8th year: $86
    • 9th through 12th year: $66
    • 13th through 16th year: $46
    • 17th year and over: $26
• EV Fees (Enr. HB 2234, to be codified as Title 68 Sec. 6501-6509)
  • Annual license fee for all electric vehicles (except PHEVs), in addition to other registration fees, depending on vehicle weight:
    • Under 6000 lbs. (Class 1) – $110
    • 6000 – 10000 lbs. (Class 2) – $158
    • 10000 – 26000 lbs. (Class 3-6) – $363
    • Over 26000 lbs. (Class 7-8) – $2250
  • There is a similar but reduced fee schedule for plug-in hybrids (PHEVs):
    • Under 6000 lbs. (Class 1) – $82
    • 6000 – 10000 lbs. (Class 2) – $118
    • 10000 – 26000 lbs. (Class 3-6) – $272
    • Over 26000 lbs. (Class 7-8) – $1687
• Total Fees
  • EV and PHEV fees are in addition to traditional registration fees. Total fees for most passenger EVs and PHEVs (Class 1) would be either $206 or $178, respectively.

“EV” Definition

• EV” means a 100%-electric motor vehicle with a battery capacity of 20kwh or more, or a plug-in hybrid electric motor vehicle with a combustion engine and battery of at least 5kwh capacity, that has four wheels and is made for use on public roads.

EV Fee Distribution (Enr. HB 2234)

• 100% of funds from these fees go to a new Driving on Road Infrastructure with Vehicles of Electricity (DRIVE) Revolving Fund until July 1, 2027.
• After this date:
  • 85% goes to the revolving fund
  • 15% is apportioned to the counties of the state

Oregon

• Traditional fees (Or. Rev. Stat. § 803.420)
  • $43 annual registration fee.
• EV fees (Or. Rev. Stat. § 803.422/Or. Rev. Stat. § 319.885; 890/HB 2017 (2017)

• • Additional fees are assigned by miles per gallon (mpg) as follows:
    • $18 for vehicles with 0-19 mpg.
    • $23 for vehicles with 23-29 mpg.
    • $33 for vehicles with 40 mpg or greater.
    • $ 110 additional annual fee for electric vehicles.
  • Note that these fees increase in 2021.
  • Electric vehicle owners can opt to participate in the state’s road usage charge program, OReGO, in lieu of the annual fee.
• Total fees
  • Annual fees of $153 for electric vehicles.

EV Definitions:

• N/A

EV Fee Distribution:

• Revenues support state and local transportation systems through road and bridge improvements, enhanced safety measures, and increased transit options.

South Carolina

• Traditional fees (S.C. Code § 56-3-620)

• • $36-40 biennial fee depending on registrant age.

• EV fees (S.C. Code Ann. §56-3-645/HB 3516 (2017))

• • $120 additional biennial fee for electric vehicles.
  • $60 additional biennialfee for hybrid vehicles.

• Total EV fees

• • Biennial feesof $156-$160 for electric vehicles.
  • Biennial fees of $96-$100 for hybrid vehicles.

EV Definitions:

• “Hybrid vehicle” means a motor vehicle powered by a combination of motor fuel and electricity, hydrogen or any fuel other than motor fuel.

EV Fee Distribution:

• Revenues are deposited into the Infrastructure Maintenance Trust Fund, to be used exclusively for repairs, maintenance, and improvements to the existing transportation system. S.C. Code Ann. §57-11-20(A).

South Dakota

• Traditional Fees
  • Annual license fee for all vehicles depending on vehicle weight. Vehicles 0-9 years old pay the following annual fees:
    • Under 2000 lbs. – $36
    • 2001-4000 lbs. – $72
    • 4001-6000 lbs. – $108
    • Over 6000 lbs. – $144
  • Older, larger, and commercial vehicles are subject to higher fees
• EV Fees (HB 1053)
  • EV owners must pay an additional $50 annual fee at the time of registration. This does not apply to hybrid vehicles.
• Total Fees
  • The $50 annual EV fee is on top of other fees, which vary by vehicle weight. For non-commercial vehicles, total fees for an EV would range from $86 - $194.

“EV” Definition

• “EV” means a noncommercial motor vehicle that is propelled by an electric motor that draws electricity from a battery that is capable of being recharged from an external source of electricity and that may be legally operated on the interstate highways in this state and eligible for registration pursuant to the laws of this state.

EV Fee Distribution

• All fees are deposited into the state highway fund.

Tennessee

• Traditional fees (Tenn. Code Ann. § 55-4-111(a)(1)(Table))
  • $23.75 annual registration fee.
• EV fees (Tenn. Code Ann. §55-4-116/HB 534 (2017).
  • $100 additional annual fee for electric vehicles.
• Total fees
  • Annual fees of $123.75 for electric vehicles.

EV Definitions:

• “Electric vehicle” means a passenger or commercial motor vehicle powered exclusively by electricity.

EV Fee Distribution:

• Revenues are deposited into the highway fund. Ten. Code Ann. § 55-6-107.

Utah

• Traditional fees (Utah Rev. Code 41-1a-1206(1)(b))
  • $44 annual registration fee.
• EV fees (Utah Code §41-1a-1206/SB 136 (2018)).
  • $90 additional annual fee for electric motor vehicles.
  • $90 additional annual fee for vehicles fueled by a source other than motor fuel, diesel fuel, natural gas or propane.
  • $39 additional annual fee for plug-in hybrid electric motor vehicles.
  • $15 additional annual fee for hybrid electric motor vehicles.
  • Fees increase in 2021 to $120 for all-electric or other nonfossil fuel powered motor vehicles, $20 for hybrid electric motor vehicles, and $52 for plug-in hybrid motor vehicles.
  • Beginning Jan. 1, 2022, fees will be indexed to the consumer price index.

• • Electric vehicle owners can opt to participate in the state’s road usage charge program in lieu of the annual fee.

• Total fees
  • Annual fees of $134 for electric vehicles.
  • Annual fees of $83 for plug-in hybrids.
  • Annual fees of $59 for hybrid vehicles.
  • Note that there is also an option to pay a six-month registration fee as opposed to an annual fee. Fee amounts for the six-month registration can also be found at Utah Rev. Code 41-1a-1206.

EV Definitions:

• “Electric motor vehicle” means a motor vehicle that is powered solely by electricity supplied by a rechargeable energy storage system.
• “Hybrid electric motor vehicle” means a motor vehicle that is capable of being powered by both an internal combustion engine and a rechargeable energy storage system.
• “Plug-in hybrid electric motor vehicle” means a hybrid electric motor vehicle that is capable of being charged by an external source.

EV Fee Distribution:

• Revenues are deposited in the Transportation Fund. Utah Code §41-1a-1201.

Virginia

• Traditional fees Virginia Department of Motor Vehicles
  • $40.75-$45.75 depending on vehicle weight.
  • Note that additional local fees may apply.
• EV fees (Va. Code §58.1-2249(b)/SB 127 (2014).
  • $64 additional annual license tax for alternative fuel vehicles or electric motor vehicles.
  • Note that Virginia’s EV fee can decrease to $50 if the receiving jurisdiction does not use the fee revenues for transportation purposes.
• Total fees
  • Annual fees of $104.75 or $109.75 depending on vehicle weight.

EV Definitions:

• “Alternative fuel vehicle” means a vehicle powered by a combustible gas, liquid or other source of energy that is neither a motor fuel nor electricity and excludes hybrid electric vehicles.
• “Electric motor vehicle” means a motor vehicle powered by electricity only.

EV Fee Distribution:

• Revenues are deposited into the Highway Maintenance and Operating Fund and must be used for district transportation purposes.

Washington

• Traditional fees (Rev. Code Wash. 46.17.350; Rev. Code Wash. 46.17.005; Rev. Code Wash. 46.17.040; Washington State Department of Licensing)
  • $30 annual license tab fee.
  • Additional filing and service fees apply.
• EV fees (Wash. Rev. Code §46.17.323/HB 2042 (2019); 2019 Ballot Initiative 976)
  • $150 additional annual registration fee for electric vehicles (initially $100 as enacted in 2012).
  • $75 additional Hybrid Vehicle Transportation Electrification fee to fund electric vehicle charging stations (enacted in 2019).
  • The state imposes two separate additional fees on electric vehicle owners. A 2019 ballot measure, Initiative 976, attempted to limit total annual registration fees for electric vehicles to $30. In October 2020, the Washington Supreme Court ruled that Initiative 976 is unconstitutional.
• Total fees
  • Annual fees totaling $255 for electric vehicles.

EV Definitions:

• “Electric vehicle” means a vehicle that is capable of being powered by electricity supplied by a rechargeable battery that can travel at least 30 miles relying exclusively on battery power.

EV Fee Distribution:

• Of the funds collected through the $150 EV registration fee, 70% goes to the motor vehicle fund, 15% goes to the transportation improvement account, and 15% goes to the rural arterial trust account.

• The $75 Hybrid Vehicle Transportation Electrification fee goes toward electric vehicle charging stations.

West Virginia

• Traditional fees (Registration Fees Brochure)
  • $51.50
• EV fees (W. Va. Code §17A-10-3c/SB 1006 (2017))
  • $200 additional annual fee on electric vehicles.
  • $100 additional annual fee on vehicles operating on a combination of electricity and petrochemical fuels.
• Total fees
  • Annual fees of $251.50 for electric vehicles.
  • Annual fees of $151.50 for hybrid vehicles gas/electric vehicles.

EV Definitions:

• N/A

EV Fee Distribution:

• Revenues from fees on vehicles operated on hydrogen, natural gas or a combination of electricity and petrochemicals are deposited into the State Road Fund, which pays the principal and interest due on state bonds issued for the fund, funding the administration expenses for the Division of Highways, and state road maintenance, construction and improvement.
• Revenues from fees on electric vehicles are deposited into the state’s Transportation Fund.

Wisconsin

• Traditional fees (Wis. Stat. Ann. §341.25(a); Wisconsin Department of Transportation)
  • $85 annual registration fee.
• EV fees (Wis. Stat. Ann. §341.25/Act 59 §1895M (2017); Act 9 § 1987 (2019))
  • $100 additional annual fee on nonhybrid electric vehicles.
  • $75 additional annual fee on hybrid electric vehicles.
• Total fees
  • Annual fees of $185 for nonhybrid electric vehicles.
  • Annual fees of $160 for hybrid electric vehicles.

EV Definitions:

• “Nonhybrid electric vehicle” means a vehicle that is powered solely by electricity and that is not capable of using gasoline, diesel fuel or alternative fuel.
• “Hybrid electric vehicle” means a vehicle that uses gasoline, diesel fuel or alternative fuel and electricity.

EV Fee Distribution:

• $75 annual fee for hybrid electric vehicles and $100 for nonhybrid electric vehicle is disbursed to the state’s Transportation Fund.

Wyoming

• Traditional fees (Wyo. Stat. §31-3-102)
  • $30
  • Additional county fees may apply.
• EV fees (Wyo. Stat. §31-3-102(a)(xxiii)/HB 9 (2015)/ HB 2 (2016)/HB 166 (2019).
  • $200 total annual fee for plug-in electric vehicles.
  • While the state initially enacted a one-time $50 decal fee in 2015, the legislature clarified its intent that the fee be annual in 2016 and increased the fee amount in 2019.
• Total fees
  • Because the state’s EV fees are total, not additional, plug-in electric vehicles are not charged a separate or passenger vehicle registration fee, but instead are charged an increased fee of $200.

EV Definitions:

• “Plug-in electric vehicle” means any motor vehicle that is propelled by a rechargeable battery capable of being charged from any external source of electricity. “Plug-in electric vehicle” does not include a hybrid vehicle. See Wyo. Stat. §31-17-301.

EV Fee Distribution:

• Revenues are deposited into the state highway fund. See Wyo. Stat. §31-17-303.

State Action

Thirty-one states have laws requiring a special registration fee for plug-in electric vehicles. Of those, 18 states also assess a fee on plug-in hybrid vehicles. These fees are typically in addition to traditional motor vehicle registration fees.

Ten states—Alabama, Arkansas, Hawaii, Illinois, Iowa, Kansas, North Dakota, Ohio, Washington and Wyoming—enacted laws in 2019 amending or adding new fees for plug-in electric and some plug-in hybrid vehicles, more than any previous year. The fees range from $50 per year in Colorado, South Dakota and Hawaii to $225 for a plug-in electric vehicle in Washington. Alabama, Arkansas, Ohio and Wyoming all enacted bills in 2019, setting or increasing fees for electric vehicles to $200 annually. 

More recently, Oklahoma and South Dakota both enacted legislation in 2021 to impose new EV fees. South Dakota now imposes a flat $50 fee for all PEVs, while Oklahoma has tiered EV fees based on vehicle weight, with a $110 fee for EVs under 6,000 pounds. Idaho, meanwhile, considered legislation in 2021 that would have increased the state’s EV registration fee to $300 annually, making it the nation's highest, and created an alternative 2.5 cents per mile fee that drivers can pay in lieu of the $300 fee. Louisiana enacted legislation in 2022 establishing a $110 fee for EVs and a $60 fee for plug-in hybrids, which is effective starting in 2023.

Revenue from these additional fees is most often directed toward a state transportation fund. However, a few states also allocate some fee revenue to support electric vehicle infrastructure. For example, Alabama allocates $50 of its $200 fee for new electric vehicle infrastructure and Washington added an additional $75 fee in 2019 to support charging stations. Colorado dedicates $20 of the $50 EV fee to the Electric Vehicle Grant Fund to support charging stations. Some, such as Louisiana, direct a portion of these revenues to local governments to support local transportation and infrastructure funds.

Eighteen states also impose a fee for plug-in hybrid vehicles that operate on a combination of electricity and gasoline. The fee for plug-in hybrid vehicles ranges from $48.75 in Iowa, as of 2021, to $100 in Alabama, Arkansas, Ohio and West Virginia. South Carolina take a different approach than an annual fee, and instead requires a payment of $120 for all-electric cars and $60 for plug-in hybrid vehicles, every two years.

At least five states—California, Indiana, Michigan, Mississippi and Utah—structure the additional registration fees to grow over time by tying the fees to the consumer price index or another inflation-related metric. These states are striving to avoid the declining purchasing power of gas taxes due to years of fixed-rate structures.

Road User Charges (RUCs)

Special registration fees are not the only mechanism states are considering to address lower gas tax revenue and equity among drivers. In 2019 and 2020, at least 19 states considered 34 pieces of legislation addressing road user charges (RUCs). Of those, at least seven states—Maine, Nevada, New Mexico, Oregon, Utah, Virginia and Washington—enacted eight new laws. Also known as Vehicle Miles Traveled (VMT) fees or Mileage-Based User Fees (MBUF), this transportation funding mechanism seeks to more closely link transportation taxes to the actual use of the roadways by a driver, as compared to traditional fuel taxes.

Since 2013, at least 10 states have enacted studies or pilot programs examining the feasibility of RUCs. These efforts also have been supported by the federal government through the Surface Transportation System Funding Alternatives (STSFA) grant program. Eleven states have received STSFA grant awards, to date. A RUC funding model requires drivers to pay based on miles driven, instead of gallons of fuel consumed. Oregon and Utah allow drivers to participate in a RUC program, in lieu of paying special registration fees on plug-in hybrid and electric vehicles. 

Oregon’s OreGo was launched as a pilot program in 2015, expanded by HB 2017 (2017) and again modified by HB 2881 (2019). Key provisions of the new law removed the cap on the number of vehicles that may participate, increased the minimum miles per gallon (mpg) rating by three to 20 MPG, replaced the per-mile charge with a formula equal to 5% of the state’s per-gallon gasoline license tax and ended refunds to participants paying more in fuel taxes than what was owed in per-mile charges. Eligible vehicles pay a base registration fee of $43 annually, plus an RUC amounting to 1.8 cents per mile, according to Oregon’s Department of Transportation. 

Utah’s program, established through SB 136 (2018) and SB 72 (2019), sets a per-mile rate of 1.5 cents per mile until the accumulated total matches the annual flat fee. In 2020, Utah’s flat fee for electric vehicles is $90 and increases to $120 in 2021.  RUC participants can never be charged more than this fee and receive monthly invoices based on miles driven. For electric vehicles, $120 is equal to 8,000 miles driven, according to Utah's Department of Transportation.