Congress proposes shocking new fee on EVs

[potato]

What everyone misses in all of this is that early adopters like us have tremendous value in helping advance and improve the industry. We are the guinea pigs who help sort out the issues, provide valuable feedback, endure the charging deserts, and all the minor inconveniences that accompany EV ownership vs. ICE.... And we're being penalized for it! Hitting us with an added tax is complete BS! We deserved the tax credit and we deserve even more perks of early EV ownership!

Problem is that those currently in power do not wish to advance and improve the industry. You will be fighting strong head winds for a while I think.

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[rdr854]

Glad I just renewed for three years. I’m guessing the only way to collect is through the state registration fees.

 

[ryun]

It's really a shame that governments keep creating a flat, regressive tax for EVs. It would be trivial to create a system where they charge per mile and vehicle class.

 

[TaxmanHog]

Glad I just renewed for three years. I’m guessing the only way to collect is through the state registration fees.

Speaking as a retired bureaucrat, collection at the state level would be so much more efficient, let the states keep the whole {FEDERAL} fee but the revenue must be earmarked to state transportation projects.

I'd love to do away with IRS form's 720 and 2290 which are federal mechanisms for collecting excise taxes of a variety of types.

 

[watts/up]

It's really a shame that governments keep creating a flat, regressive tax for EVs. It would be trivial to create a system where they charge per mile and vehicle class.

Virginia offers the option to pay our HUF based on mileage but you need to add a device to your truck. I'd rather just pay the flat fee which is based on an average of 11.6K miles per year...

Edit: VA is a flat $128.14 for EVs.

 

[ryun]

Virginia offers the option to pay our HUF based on mileage but you need to add a device to your truck. I'd rather just pay the flat fee which is based on an average of 11.6K miles per year...

That's cool but seems way overcomplicated. Every state does an annual inspection on vehicles. Have them submit the odometer reading to the Fed and state governments during inspection like banks due when you earn interest. Subtract from last year's reading and voilà: that's your usage. Make the tax due on sale or if the vehicle is totaled in an accident too. Don't need inspections or don't do them? Then just have people self report and have high penalties for fraudulent behavior. We rely on self reporting when much, much more money is involved when tax day comes around.

There are many drivers on the road today that don't drive anywhere close to the average 10K annually. Farmers that use their truck predominantly on the farm, the elderly, the retired, remote workers, etc.

On the flip side of the equation too this means people who drive more than the average are getting a heck of a deal.

Sorry I'm ranting (not at you; hopefully it didn't come off that way). It just annoys me so much when we have the means and existing infrastructure to do something fair and we whiff it.

 

[RickLightning]

Agreed! Oregon $970

Don't think so.

Oregon charges a $115 EV fee...

$600 registration fee I just paid should be sufficient as EV penalty to pay for the roads.

Maryland is $125 EV fee.

It's pretty clear that most people don't try to understand their registration fee, they have a kneejerk reaction at the "big" number and don't realize that the EV portion is a fraction of it.

Georgia is the second highest insurance rates in the country.

Not even close. Not even top 5.


Not in order - Florida, Michigan, New York, Nevada, Louisiana...

 

[watts/up]

I agree, it is overly complicated and states are still trying to figure all this out. I don't think it's true that all states require annual inspections though. I don't drive 12k miles per year but for me the extra cost is worth it to not have a dongle babysitting me.

 

[ryun]

I agree, it is overly complicated and states are still trying to figure all this out. I don't think it's true that all states require annual inspections though. I don't drive 12k miles per year but for me the extra cost is worth it to not have a dongle babysitting me.

Interesting. Didn't know that about inspections. Thanks for the info!

 

[GDN]

Correct on not all states have inspections these days. OK dropped theirs a few years back and TX has dropped it this year other than some counties still require emissions, but nothing else. The kicker is we still pay part of the inspection fee when renewing the tag. Get that craziness.

If you do it by mileage, you'll just create a whole new class of cheats and devices to try and help cheat.

I'm about the flat tax - let all of the ICE owners get upset at the politicians too, but we know they won't go that far. In another 10 years as EV's continue to gain in numbers the pendulum will finally swing and we'll have enough voice and pressure on them to get the oil guys out of their pockets. They'll reform to a flat fee for everyone or some other structure. We're going to be stuck paying more for a while though because those pockets are heavy.

 

[watts/up]

I'm about the flat tax - let all of the ICE owners get upset at the politicians too, but we know they won't go that far. In another 10 years as EV's continue to gain in numbers the pendulum will finally swing and we'll have enough voice and pressure on them to get the oil guys out of their pockets. They'll reform to a flat fee for everyone or some other structure. We're going to be stuck paying more for a while though because those pockets are heavy.

Agree with this. As for paying more, there is an argument to be made that EVs weigh more and would therefore be harder on infrastructure. I haven't seen any real math supporting this yet but I do like maintained roads, if that's where the money is going.

 

[ryun]

The kicker is we still pay part of the inspection fee when renewing the tag. Get that craziness.

That's butts. Hate that for you.

If you do it by mileage, you'll just create a whole new class of cheats and devices to try and help cheat.

Pretty sure odometer tampering is illegal. And like I was saying earlier: we already rely on self-reporting when way more money is involved in paying taxes. I don't think the threat of some bad actors is good justification for not having a more fair fee implementation.

 

[bthanos]

I paid $1120 to register my 2023 Lightning Platinum in CA. And they need $250 more?
It’s getting to be ridiculous. Plus we pay $0.31 per KWH here. Of course Gas here is also expensive. Do the feds get a cut of Gas tax? This is what they are trying to replace by targeting EVs?

 

[Theredshift]

It's just politicians dividing everything we do. If they had you know what's we'd just do away with collecting any tax at the pump and charge every vehicle the same flat fee at registration as they've chosen to do for EV's. Not one of them will ever attempt to do this because they know the fees they are setting for EV's are too high and they'd be railroaded out of town.

Every democrat voted against it. Fyi

 

[bananaslug79]

The craziest thing is the gas tax hasn't been adjusted for inflation since 1993. So if this federal fee (or any current state fees) for EVs only is in some way supposed to recoup that cost then it is way overpriced.

https://electrek.co/2025/04/30/repu...evs-but-allow-gas-cars-free-ride-on-us-roads/

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