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Pennsylvania House of Representatives
05/17/2024 10:42 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20230&cosponId=42280
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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: March 12, 2024 03:04 PM
From: Representative Ed Neilson
To: All House members
Subject: Gradual Implementation of a Fair Electric Vehicle Fee
 
Today, approximately 75% of Pennsylvania’s highway and bridge funding comes from federal and state gas tax revenue, which continues to decline. Although plug-in electric vehicles (EVs) cause wear and tear on our roads, they contribute significantly less in fuel taxes toward our transportation infrastructure due to Pennsylvania’s confusing alternative fuels tax on electricity.
 
Currently, EV owners are supposed to be filing monthly statements with the PA Department of Revenue to remit the alternative fuels tax for how much electricity their vehicle uses. However, most EV owners do not do this because the process for remitting the alternative fuels tax is cumbersome, and many owners are unaware of the requirement. In 2022, there were nearly 43,000 registered EVs in Pennsylvania, but the Commonwealth only collected about $589,000 statewide from the alternative fuels tax on electricity.
 
My legislation addresses this issue by repealing the alternative fuels tax on electricity for residential charging, and replaces it with an easy-to-understand annual EV fee that gradually increases over the next five years as follows:
  • $125 in 2025.
  • $150 in 2026.
  • $175 in 2027.
  • $200 in 2028.
  • $225 in 2029.
This EV fee will then be adjusted annually for inflation starting in 2030 and each year thereafter. By implementing this EV fee in a gradual manner over the course of the next five years, we can give current and potential EV owners a chance to adjust to this new requirement, while ensuring that all vehicles operating on Pennsylvania’s roadways are paying their fair share to maintain our roads and bridges.
 
Please join me in co-sponsoring this important legislation.


Introduced as HB2184