Republicans In Congress Want a Flat $200 Annual EV Tax

The Republican chairman of the House Transportation and Infrastructure Committee is proposing a new annual federal vehicle registration fee of $200 for full EVs, $100 for hybrid EVs, and $20 for combustion vehicles. The tax would be tied to inflation, would be collected by the states, and would expire in 2035. Critics of the proposal note that it could result in low mileage EVs paying a far higher tax rate than heavy ICE trucks and SUVs. Ars Technica notes that the bill “exempts commercial vehicles, which should see a rush from tax avoiders to register their vehicles under their businesses […].” Farm vehicles will also be exempt from the tax.

“The Eno Center for Transportation calculates that this new tax will contribute an extra $110 billion to the highway Trust Fund by 2035 but that cuts to other taxes and more spending mean that the fund will still be $222 billion short of its commitments — assuming that this added fee doesn’t further dampen EV adoption in the U.S., that is.”