Local News

States consider new fees for electric vehicle owners

Posted October 2, 2020 5:40 p.m. EDT

Potholes, old bridges, crumbling asphalt — states across the country are struggling to find the money to repair their roads.

As 5 On Your Side’s Monica Laliberte tells us, some have a new strategy: taxing electric vehicles.

Electric vehicles don’t use gas, so they don’t pay the taxes that help with roads.

But some states, including North Carolina, are adding fees or taxes to make up or it.

North Carolina charges an annual $130 fee.

Lawmakers approved the fees to makes sure that electric vehicle owners pay a share of road repairs.

In some states, such as Ohio, electric car drivers will soon pay 36% more in fees than what the average motorist pays in gas taxes.

Consumer Reports believes that ineffective and unfair.

“Electric vehicles are not that reason states are struggling to pay for roads. In fact, even if electric vehicles really took off and were much more popular, they would still only contribute about 1% of the needed funding,” says Shannon Baker-Branstetter with Consumer Reports.

A Consumer Reports analysis shows by 2025, as many as 27 states could tax electric vehicle drivers even more than what the average driver will pay in gas taxes.

Still, Consumer Reports says those fees won’t make a dent in what’s needed for road repair.

"Really the problem has to do more with states not raising gas taxes to keep up with inflation,” says Baker-Branstetter.

North Carolina lawmakers introduced legislation to increase fees for EVs.

It’s stalled, but it might be a matter of time before owners here are paying more.

In North Carolina there is no additional fee for hybrid vehicles.

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