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Electric vehicle owners may soon be hit with annual fee in Pennsylvania

The proposed bill would have EV owners pay a $290 yearly fee. There's bipartisan support, but some lawmakers believe that number is too high.

HARRISBURG, Pa. — If you have an electric vehicle, it may soon be time to pay up.

“When I started this process there may have been 5,000 electric vehicles, now there’s 10,000 electric vehicles," said Senator Greg Rothman (R-Cumberland/Perry/Dauphin). "A lot of manufacturers are saying they’re not going to make gas vehicles anymore so we’re not going to have a way to fund our infrastructure.

The upkeep of Pennsylvania’s roads and bridges is funded through a state gas tax.

The current rate of .61 cents per gallon is one of the highest in the United States, but those driving an electric vehicle aren’t paying for it.

“You don’t pay gas tax obviously, you pay an alternative fuels tax," explained Sen. Rothman. "Well turns out most electric vehicle drivers don’t know about the alternative fuels tax and aren’t paying it.”

That’s why Senator Rothman is proposing a bill that would get rid of that tax, instead requiring all electric vehicle owners to pay a flat rate of $290 every year.

“That works out to what the typical Pennsylvania driver pays in gas taxes and that’s why it’s fair," said Sen. Rothman.

The bill has passed out of the state Senate and is now in the House of Representatives.

House Transportation Committee Chairman, Rep. Ed Neilson (D-Philadelphia), agrees electric vehicle owners need to pay their share but wants to see a lower price tag.

“We believe it should be much lower and gradually work up as more EVs get on the road," he said Wednesday.

He’s put forth an amendment that would instead start the fee at $125, gradually increasing it to $225.

“The key is to be fair to all automobile owners so they pay their fair share to fix the road and we believe that’s a fluctuating number," said Rep. Neilson.

He says some may think a higher fee will help fix the state’s infrastructure deficit, but he doesn’t believe that’s true.

“PennDOT is short billions of dollars every year fixing our infrastructure and I’m afraid they’re using this as an excuse to not address that issue," said Rep. Neilson.

The proposed legislation would not have any impact on the federal tax credit that is given to people who purchase an electric vehicle.

Rep. Neilson says he's hopeful lawmakers will come to a resolution and get the bill to Governor Shapiro's desk by the end of this week.

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