Florida, Wyoming among states looking to tap electric vehicles for new fees

States are accustomed to tapping the wallets of truck drivers to help cover transportation funding needs. A growing trend in statehouses across the country is to look for funding from owners of electric vehicles and hybrid vehicles.

At least 32 states impose a special registration fee for plug-in electric vehicles, according to the National Conference of State Legislatures. Of those, 19 states also assess a fee on plug-in hybrid vehicles.

Fees for plug-in electric vehicles range from about $50 annually in Colorado, Hawaii and South Dakota to $225 annually in Washington.

Florida

In preparation for the 2024 regular session, one Florida state senator again is taking up pursuit to bring the funding mechanism to the Sunshine State.

Sen. Ed Hooper, R-Clearwater, has filed a bill that would impose a yearly registration fee of $200 on electric vehicles.

Hybrid vehicle owners would be charged $50.

The amounts would increase by $50 in 2029. Both fees would be in addition to regular registration fees. An exemption is included for vehicles that use a battery storage system of up to 5 kilowatt hours.

The Florida Department of Transportation would receive 64% of the fee revenue. Proceeds would be deposited into the state’s transportation trust fund.

Counties where vehicles are registered would get 36%. Local governments would be required to use funds for transportation-related expenses. House lawmakers voted unanimously earlier this year to advance Hooper’s bill. Approved near the end of the regular session, it did not get consideration in the Senate.

Advocates say the new funding stream in Florida would help counter a reduction in fuel tax revenue needed for transportation work. The Florida DOT’s Electric Vehicle Infrastructure Master Plan concludes that negative impacts to motor-fuel based revenue streams in the state could range between 5.6% and 20% by 2040, depending on the rate of growth of electric vehicle sales.

Wyoming

In Wyoming, a state legislative panel is discussing whether to pursue supplementing transportation funding via electric vehicles.

A $200 registration fee already is collected from electric vehicle owners to benefit road maintenance. No fee is charged to owners of hybrid vehicles. The Joint Transportation, Highways and Military Affairs Committee met recently to discuss the possibility of tapping more electric vehicle owners to help cover road maintenance needs.

The panel voted to move forward with legislation that calls for out-of-state electric vehicles to supplement transportation funding.

Specifically, legislators agreed to pursue a plan to collect a tax on out-of-state vehicles at Level 3 direct current (DC) fast-charging stations. The tax rate would be set at 4 cents per kilowatt-hour.

Advocates say DC fast charging is ideal for travelers covering extended distances with short recharge stops and that collecting a tax on out-of-state electric vehicles will create another transportation revenue source for the state.

“The idea is to try to catch … those out-of-state folks and tax them for the use of our roads,” Sen. Stephen Pappas, R-Cheyenne, told the committee.

Rep. Cody Wylie, R-Rock Springs, asked to add a provision to the bill draft that would charge a $100 annual fee for plug-in hybrids registered in the state. The committee approved including the provision in the bill draft. The bill can be considered during the 2024 regular session. LL