Electric vehicles offer many benefits over comparable gas models, but they can be costly to the communities where their owners live. EV owners don’t need gas, which means less tax revenue, and that’s before we get into incentives and other offers. Some states have proposed EV use taxes to make up for the loss in revenue, but the numbers are different everywhere, and only some of the states considering a tax have actually implemented the rules.
Alabama, for example, will increase the fees by $3 every four years. Others have proposed much higher annual fees, with some reaching $1,000, but none have been that severe to date. You may also hear of states charging additional EV taxes on top of the annual fees, such as Illinois adding $158 to the $100 registration fee for electric vehicle owners. Are EV Registration Fees Helpful? While EV owners likely feel disdain for the expense, the fees do help make up for states’ lost gas tax revenues.