PA to stary an annual “road user fee” to EV owners

[PA Bob]

The Keystone State is no longer incentivizing EV ownership. The rebate is no more. Now we have to pay a road user fee since we don’t pay a gas tax. It’s a set fee whether you drive one mile or a million miles. We already pay tax on the electricity which is the fuel we use. Twenty nine states charge this fee. PA has the highest fee - and it’s scheduled to increase already. I guess they haven’t heard of climate change.

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[Billyk24]

Ohio and West Virginia have a $200 extra annunal registration fee for EV. A number of states have put a kWh tax on electric at dcfc charging stations
That will arrive in PA in the next future under the current state leadership
.

 

[dtbaker61]

The Keystone State is no longer incentivizing EV ownership. The rebate is no more. Now we have to pay a road user fee since we don’t pay a gas tax. It’s a set fee whether you drive one mile or a million miles. We already pay tax on the electricity which is the fuel we use. Twenty nine states charge this fee. PA has the highest fee - and it’s scheduled to increase already. I guess they haven’t heard of climate change.

so, I am all for incentivizing EV sales.... and I think the Federal subsidies on purchase are about as good as we are going to get. SOME states have additional tax credits on purchase, some with restrictions. In NM for instance, we can (now) get $3k on a new vehicle with MSRP <$50, and $1500 on used one sold at a NM dealership, with purchase price <$25k.

However, I am also for a reasonable and fair annual tax on EVs in lieu of 'gas tax' to maintain roads and bridges.

In states that are not set up with annual inspections where actual miles driven could be verified, the best they can do is assume 'average' miles driven, and set a fee to collect the 'gas tax' revenue as best they can.

$200-$250 per year is probably pretty close for the a vehicle driven around 20,000 miles per year.

I have gone a step further in trying to help State Legislators craft a more 'fair' way to get revenue for roads and bridges..... I propose an annual Inspection statewide to include:
- safety inspection (lights, windsheild, blinkers, horn)
- emissions, and noise at idle, 'blip', and 2000 rpm (for ICE vehicles)
with limits set designed to reduce poor tuning, 'rolling coal',
and 'tuner' exhausts
- weight, and Odometer reading. (to be used to calculate 'use tax')
all new vehicles to be assessed assuming 20,000 miles, and
subsequent years assessed using actual miles driven.

... to me, this would be totally fair regardless of fuel, and inspire what we want; lighter vehicles driven fewer miles.

 

[johnnycombo]

PA tax per gallon is 58 cents, so with a $200 fee and compared to 30 miles per gallon with an efficient vehicle, we will pay for 10,350 miles. It sounds below average for a working person and not fare for the retired community (like me). The fee will be $260 in 2026. Here's an article so you know who to thank: https://penncapital-star.com/briefs...ternative-fuels-tax-for-evs-creating-new-fee/

 

[zvez]

PA tax per gallon is 58 cents, so with a $200 fee and compared to 30 miles per gallon with an efficient vehicle, we will pay for 10,350 miles. It sounds below average for a working person and not fare for the retired community (like me). The fee will be $260 in 2026. Here's an article so you know who to thank: https://penncapital-star.com/briefs...ternative-fuels-tax-for-evs-creating-new-fee/

I pay $210 a year in GA, that's the equivalent of gas tax on 800 gallons. Far more than I ever used in a given year even when I was working, BUT most states use the gas tax for highway and road maintenance. I just don't understand the pushback from EV owners that think a road use tax(ev fee) is bad, they're not paying a gas tax so theoretically would be using the roads for free.

DTBaker's points are spot on. Some states are already having a two tiered rate structure for evs one a flat rate and other based on annual mileage. Until then I just have no trouble paying a flat fee.

These threads come up on various forums weekly.

 

[TheVirtualTim]

The average car gets about 25 mpg (not the average 'new' car ... just the average of all cars on the road). Also ... with the assumption that the average driver puts about 15,000 miles on their car in a year (some estimates are 12,000 ... but I'll be generous and do 15k) that means the average driver needs about 600 gallons of gas per year.

In Michigan (my state), the tax on gasoline is 30¢/gallon as of Jan 1 2024. I'm not sure how typical that is.

600 gallons x 30¢/gallon tax = $180

Michigan charges EV owners an extra $140 to the registration fee.

 

[zvez]

The average car gets about 25 mpg (not the average 'new' car ... just the average of all cars on the road). Also ... with the assumption that the average driver puts about 15,000 miles on their car in a year (some estimates are 12,000 ... but I'll be generous and do 15k) that means the average driver needs about 600 gallons of gas per year.

In Michigan (my state), the tax on gasoline is 30¢/gallon as of Jan 1 2024. I'm not sure how typical that is.

600 gallons x 30¢/gallon tax = $180

Michigan charges EV owners an extra $140 to the registration fee.

when you combine that with the gas savings it's even better.

 

[SonicBlue]

We already pay tax on the electricity which is the fuel we use.

That tax isn’t earmarked for roads. The gas tax is. You really think you should be exempt because you drive an EV? Your car is heavier and more punishing to roads relative to a comparably sized ICE.

I guess they haven’t heard of climate change.

Governor Shapiro is a Dem. Pretty sure he’s heard of it. You buying an EV ain’t changing anything.

 

[Mach1E]

The average car gets about 25 mpg (not the average 'new' car ... just the average of all cars on the road). Also ... with the assumption that the average driver puts about 15,000 miles on their car in a year (some estimates are 12,000 ... but I'll be generous and do 15k) that means the average driver needs about 600 gallons of gas per year.

In Michigan (my state), the tax on gasoline is 30¢/gallon as of Jan 1 2024. I'm not sure how typical that is.

600 gallons x 30¢/gallon tax = $180

Michigan charges EV owners an extra $140 to the registration fee.

If you want to add to the math:


Make sure you subtract all the extra taxes you pay on electricity because of your increased usage by charging at home.

Our “fuel,” is already taxed. If they need more tax money for roads because of us buying BEVs, tell the government to repurpose some of the tax money that we already pay on our electric bill.

 

[Mach-Lee]

The problem is these EV fees can be based on an excessive amount of mileage in some cases. It should be based on driving an average amount of miles with a 30 MPH vehicle.

For Pennsylvania, 11,445 mi / 30 MPG * $0.576 = $220 in taxes, so $200 is reasonable.

In Wisconsin, 15,442 / 30 MPG * $0.309 = $159. Our fee is $175, so a little high. AND we have to pay a kWh tax on public charging now too!

Either way, this type of fixed EV tax penalizes people that don't drive their EV much because they pay way more than their share.

 

[Schmedlack]

The problem is these EV fees can be based on an excessive amount of mileage in some cases. It should be based on driving an average amount of miles with a 30 MPH vehicle.

For Pennsylvania, 11,445 mi / 30 MPG * $0.576 = $220 in taxes, so $200 is reasonable.

In Wisconsin, 15,442 / 30 MPG * $0.309 = $159. Our fee is $175, so a little high. AND we have to pay a kWh tax on public charging now too!

Either way, this type of fixed EV tax penalizes people that don't drive their EV much because they pay way more than their share.

You are right. Maryland is instituting a $250 biannual surcharge for EVs while increasing registration fees for vehicles over 3700 lbs. So we get it up both ends, so to speak. A fixed EV surcharge is being implemented in place of a usage based fuel tax. The Maryland lawmakers who put this legislation in place believe that this is a "fair" practice. To me it's a just another cure for constipation.

 

[garyd9]

A proper solution would be mileage based. At least in PA, cars must pass a year safety inspection, and part of that involves the inspection shop reporting the mileage of the car. That can be used to fairly tax EV's.

For that matter, PA could use that same mileage calculation to tax _all_ vehicles (gas, electric, etc) and drop the insane $0.50+ gas tax.

The new PA law has another oddity in that PHEV's are only charged 25% of the new tax/fee. This doesn't make much sense to me as a PHEV used just for a daily commute can actually go months without using a single drop of gasoline. So why would they only have to pay 1/4 as much as a full EV?

This bill just seemed like it was crammed through either for a special interest group, or without proper and educated thought. While I agree with the sentiments that EV drivers should pay their fair share, I disagree with the execution.

 

[Billyk24]

A proper solution would be mileage based. At least in PA, cars must pass a year safety inspection, and part of that involves the inspection shop reporting the mileage of the car. That can be used to fairly tax EV's.

For that matter, PA could use that same mileage calculation to tax _all_ vehicles (gas, electric, etc) and drop the insane $0.50+ gas tax.

The new PA law has another oddity in that PHEV's are only charged 25% of the new tax/fee. This doesn't make much sense to me as a PHEV used just for a daily commute can actually go months without using a single drop of gasoline. So why would they only have to pay 1/4 as much as a full EV?

This bill just seemed like it was crammed through either for a special interest group, or without proper and educated thought. While I agree with the sentiments that EV drivers should pay their fair share, I disagree with the execution.

Remember in the past Govrrnor Fast Eddie and elected officisls diverted part of the PA Turnpike tolls to mass transit in Pittsburgh and Philly. This continues today. Dont be surprised if future funds for roads end up elsewhere.

 

[MellowJohnny]

In Ontario a portion of the gas tax goes to the municipalities to fund public transit, and I'm not even sure the rest goes to road maintenance. Probably.

Either way, the $0.04 per litre (out of $0.09 I think) I used to pay at the pump should ultimately come from somewhere, but so far there are no extra fees to EV drivers in Ontario. Yet.

 

[Brian M]

You are right. Maryland is instituting a $250 biannual surcharge for EVs while increasing registration fees for vehicles over 3700 lbs. So we get it up both ends, so to speak. A fixed EV surcharge is being implemented in place of a usage based fuel tax. The Maryland lawmakers who put this legislation in place believe that this is a "fair" practice. To me it's a just another cure for constipation.

Maryland is nothing without a new way to tax. I don’t have an issue with paying my share but the problem with MD is I’m not quite sure what the $.47/gallon is going towards, it’s not to fix the roads. I drive among other ICE veh a Miata and the potholes on I97 swallow my car and I bottom out on the speed bumps on the on ramps. I don’t get any break for driving a 2200lb car that gets 40mpg. So like the tax this fee will benefit no one.

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