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The maintenance of our highways has traditionally been funded from a combination or Federal and state taxes collected at the pump from the sale of motor fuels. Because electric vehicles (EVs) do not refuel at pumps that collect state and Federal highway taxes, they do not contribute to the upkeep of the highways. This has caused many states to rethink how taxes are assessed. Some proposals call for changes on how all vehicles are taxed while others are focused specifically on taxing EVs through increased annual registration fees or per-mile charges. As shown in the figure below, Washington, Nebraska, and Virginia have already enacted legislation to begin collecting taxes from EVs while other states have proposed legislation. States not shown in the figure that are considering annual fees include Indiana, South Carolina, Texas, and Vermont.

Annual Fees for Electric Vehicle Owners as of July 2013
Graph showing annual fees for electric vehicle owners as of July 2013 (proposed and already enacted). See tables below for more detailed information.
  • Nebraska and Virginia fees also apply to hybrid-electric vehicles.
  • Arizona fees are based on the vehicle's annual mileage, with fee not to exceed $120/year.
  • North Carolina fees for hybrid-electric vehicles are $50/year.
  • Oregon fees apply to any vehicle with fuel economy above 55 miles per gallon and are based on the vehicle's annual mileage. Above estimate calculated for 15,000 miles/year.

Supporting Information

Annual Fees for Electric Vehicle Owners as of July 2013
State Annual Fee
Already enacted
Washington $100
Nebraska $75
Virginia $64
Proposed
Oregon $230
Arizona $120
North Carolina $100
Michigan $75
New Jersey $50
Sources:
Crain Communications, Automotive News, "The EV taxation debate comes to Michigan"
Crain Communications, Automotive News, "States debate taxing green cars to recover lost gas taxes" June 9, 2013.
National Conference for State Legislators, Transportation Funding and Finance Legislation Database, accessed July 2, 2013.
Autobloggreen, "Oregon proposes 1.5-cent-per-mile mileage tax for EVs, would also target 55+ mpg cars" March 3, 2013.

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