Legislation would modify tax for electric vehicle owners in Pennsylvania

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The Pennsylvania Senate Transportation Committee recently advanced legislation that would replace the state’s Alternative Fuels Tax for electric vehicle owners.

Senate Bill 656 would amend Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes to exempt electric vehicle owners from the tax and replace it with an annual flat fee of $290.

Revenue from the flat fee will be deposited into the Motor License Fund for highway maintenance and construction same as the gas tax. The fee was calculated based on the average annual gas taxes paid by owners of gas-powered vehicles.

“My legislation will simplify government for electric vehicle owners and ensure all drivers are contributing toward the maintenance of Pennsylvania’s roads and bridges,” state Sen. Greg Rothman (R-Perry), who sponsored the bill, said.

Owners of electric vehicles currently are required to file monthly statements with the Pennsylvania Department of Revenue and pay the alternative fuel tax based on how much electricity their vehicle uses.

Most electric vehicle owners either do not do this or are inconsistent doing so because they are either unaware they must pay the fees or they find the process cumbersome.

The bill now moves to the full Senate for consideration. If the bill becomes law, it will go in effect on Jan. 1.