PA Proposes Nation’s Highest Owner Fee For Electric Vehicles

PENNSYLVANIA — A bill before the state House would require electric vehicle owners in the Keystone State to pay an annual fee, with revenue going towards highway construction and maintenance projects. The proposed $290 yearly fee would be the highest in the nation, with some legislators saying the amount is too steep.

Sen. Greg Rothman (R-Cumberland) proposed the bill, which is designed to eliminate the alternative fuel tax on electric vehicles and replace it with an annual fee.

"This legislation will simplify the process and ensure electric vehicle owners are paying their fair share towards the Commonwealth’s transportation infrastructure, just as individuals who drive gas powered vehicles contribute towards fuels taxes," Rothman said in a memo earlier this year.

The state Senate passed this legislation in June, with the House Transportation Committee voting Monday to send it on to the full House.

Transportation Committee Chair Ed Neilson (D-Philadelphia) proposed several amendments that would reduce the annual fee, and phase it in over several years.

“If this bill passes and becomes law we will be the highest in the country. We want to make sure that this legislation is done fairly,” Neilson said, as quoted in the Pennsylvania Capital-Star.

The act, if passed, would take effect Jan. 1, 2024 according to the text of the bill.

There were more than 50,000 battery electric vehicles registered in Pennsylvania in June of 2023, according to the state's Drive Electric Coalition. And, the coalition counted 27,116 plug-in hybrid vehicles, and 238,690 overall hybrid vehicles on the road.

The Pennsylvania Department of Transportation has been seeking alternate funding sources, as state transportation revenue " is trending downward and is expected to continue to do so."

A Consumer Reports analysis in June found a reasonable maximum fee for Pennsylvania would be $190, if the state were to adopt these fees.