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Pa. lawmakers introduce bill requiring electric vehicle owners to pay $290 annual fee

Pa. lawmakers introduced a new bill that would require electric vehicle owners to pay a $290 annual fee to help fund bridge and road improvements.

PENNSYLVANIA, USA — Electric vehicle owners in Pennsylvania may soon have to pay an annual fee to help fund improvements to Pa.'s bridges and roads.

Senate Bill 656, sponsored by State Senator Greg Rothman (R-Cumberland and Perry County), passed the Senate Transportation Committee 13 to 1 on June 7.

The new legislation would require electric vehicle owners to pay $290 yearly or $24.17 in monthly payments. 

"Sometimes we take for granted that we start up our cars and drive to work and we don’t think what we are driving on top of," State Sen. Rothman said. "Someone had to build those roads, someone has to pay for them. This is about making sure that in the future we have the infrastructure resources to maintain those roads and bridges that are so important to us."

The annual fee would replace the alternative fuels tax, which lawmakers say is complicated for owners. The current system requires electric vehicle drivers to file a statement each month on their usage and make payments accordingly. Due to the complexity, lawmakers say only about 10% of electric vehicle owners make that tax payment. 

"We are going to share the cost of roads so we all benefit from it. If we’re asking the taxpayer or the citizen of Pennsylvania to contribute to these things, we should make it as easy as possible," State Sen. Rothman said. "The alternative fuels tax is not easy, it's complicated and people don’t even know about it."

At the $290 price tag, Pennsylvania would have one of the highest electric vehicle fees out of the 33 states across the country that enforce one. 

Lawmakers say the fee was calculated based on the average annual gas taxes paid by owners of gas-powered vehicles at the pump in Pennsylvania.

"The reality is the way we’ve chosen to fund our roads and bridges in Pennsylvania is through this user fee," State Sen. Rothman said. "People who don’t have cars, don’t have to pay it. I think it’s a small price to pay to be able to use safe roads and bridges in the Commonwealth."

However, lawmakers who oppose the bill say the high price tag may deter people from purchasing electric vehicles in the future, impacting both the economy and the environment.

State Senator Lindsey Williams (D-Allegheny County), the lone senator to vote against the bill, said in a statement:

"I heard from national experts who stressed the importance of striking the balance between making sure EV owners pay their fair share for the wear and tear on our roads while also keeping EVs affordable for the sake of both our environment and our economy. The fee in SB 656—one of the highest in the country—doesn’t strike that balance."

Lawmakers say the new bill would initially generate about $20 million for the Motor License fund and would increase as electric vehicle usage grows in the Commonwealth. In 2022, there were 42,785 EVs registered in Pa. compared to the 7,694 electric vehicles registered in 2018.

The bill now heads to the Senate for consideration.

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