U.S. House Republicans have introduced a proposal to impose a new annual fee of $200 on electric vehicles (EVs), as part of a broader effort to reconcile lost revenue from fuel taxes. The fee, outlined in the House Transportation and Infrastructure Committee’s reconciliation bill draft, is set to take effect in the next decade and will be adjusted annually for inflation.
Currently, EV owners do not pay diesel or gasoline taxes, which are major funding sources for the nation’s road and bridge repairs. To address this shortfall, 39 states have already implemented fees for EV drivers. The proposed federal fee aims to create a more consistent revenue stream for infrastructure projects.
The committee’s proposal includes a tiered fee structure:
- $200 for electric vehicles
- $100 for hybrid vehicles
- $20 for other cars
These fees are designed to bridge the gap created by the shift away from traditional fuel sources. To put the $200 EV fee into perspective, it equates to the tax on approximately 1,093 gallons of gasoline, based on the federal gas tax rate of 18.3 cents per gallon. This is roughly double the average annual gas consumption per registered vehicle, which varies between 350 to 562 gallons according to different estimates.
The proposal, put forth by Rep. Sam Graves (R-Mo.), is scheduled for consideration by the House Transportation and Infrastructure Committee on Wednesday.
