Share:
House Co-Sponsorship Memoranda
House of Representatives
Session of 2019 - 2020
Regular Session
MEMORANDUM
| Posted: | October 2, 2019 10:26 AM |
|---|---|
| From: | Representative Greg Rothman |
| To: | All House members |
| Subject: | Electric Vehicle Fairness Act Legislation |
| I will soon be introducing legislation that will mirror House Bill 1392 (Electric Vehicle Road Use Fee Act). However, my version of the legislation implements the Electric Vehicle Fairness Act. The Electric Vehicle Fairness Act would impose a more comparable fee on electric and hybrid vehicles when compared to the average cost a PA motorist would pay in gas taxes per year. It has been stated repeatedly by my colleagues, on average, a PA motorist using a gas-powered car will pay approximately $275 in state gas taxes per year. Whereas, electric and hybrid electric vehicles are subject by law to the “Alternative Fuels Tax,” since these vehicles are powered by electricity and fueled at electrical charging stations. However, it has been proven that not all those responsible to pay the Alternative Fuels Tax on electricity have been paying the tax. Currently, the process for the state to collect the Alternative Fuels Tax on electricity is reliant upon the owners of the electric or hybrid electric vehicles, understanding that they must remit their tax back to the Commonwealth. The tax rates on Alternative Fuels are calculated from the current year’s Oil Company Franchise Tax rate on gasoline and published in the PA Bulletin. For 2019, the tax for electricity is $.0172 per kWh. To calculate the total tax based on that year’s tax rate, an individual would need to multiply the kWh it takes to charge the vehicle by the number of times that vehicle was charged in that reporting period and report that number to the Department of Revenue. Since the onus is on the owner of the vehicle to remit their tax back to the state, instituting a comparable annual fee at the time of registration for the vehicle will alleviate many of the current burdens all parties face. Whether your vehicle is fueled at a gas station or an electrical charging station, it still drives on PA and municipal roads. I encourage you to support this important legislation that would bring uniformity to how motorists pay for their road usage within this Commonwealth. |