Electric Vehicle Registration Fees To Help Fund Maintenance Of Roads

The onset of electric vehicles has the state looking for alternative ways to fund state road improvements with more cars buying less gas.

Historically, a majority of the revenue for such improvements was generated by fuel tax dollars. Representative Ryan Williams said to offset the potential loss in fuel tax revenue, there will be an increased price for electric vehicle registration.

Electric vehicle owners currently pay a $100 registration fee. The new fee begins at $200 and then increases to $274 in two years.

“And so those monies, even though collected by the county clerk’s office, will go directly to the road fund just like your fuel tax would normally do,” Williams said. “some ach person regardless of what kind of vehicle, whether it’s a combustion, a hybrid, or an electric vehicle, is paying their fair share for the maintenance and utilization of the roads.”

Williams said the state last increased fuel tax under the Improve Act. He said today, to maintain a mile of road costs four times as much as it did 12 years ago.

Williams said in order to maintain roads, this updated registration fee is a way to do so. Williams said as we move forward, he is hopeful this will be a solid solution to the increasing number of electric vehicles.

“We don’t want to disincentivize people from buying electric vehicles which is why we use the average of an average vehicle and the average number of miles one would actually drive for that vehicle,” Williams said. “Of course, we’ll have to look and see what revenues generate there, but after a period of time of three years, that $300 does not apply after the third year.”