The cost of owning an electric vehicle is going up as several states are looking to make up for lost gas taxes by hitting EVs with new fees.
The increased fees vary by location, but the Associated Press is reporting that at least eight states will enact new or higher fees for electric vehicles in 2020.
The news sounds bad, but the costs aren’t too expensive as owners in Hawaii will need to shell out an extra $50. In Kansas, drivers will need to fork over $100, while in Alabama and Ohio they’ll need $200.
Also Read: President Trump Said To Support A 25 Cent Increase In Gas Taxes
New fees aren’t the only problem facing EV owners as some states are cutting back on incentives as well. That’s particularly true in Illinois where electric vehicle owners have been able to get a two-year license plate for a discounted price of $35. Beginning in 2020, they’ll have to pay $148 annually and then an additional $100 to make up for lost gas taxes.
Even eco-friendly California is getting in on the action as zero emission vehicles will be hit with a new $100 fee in July. That should generate quite a bit of money for the state as the AP notes California is responsible for nearly 50% of electric vehicle sales in the United States.
Of course, the fees aren’t all bad as some states will use a portion of the revenues to promote EV adoption. In Alabama, a quarter of the $200 fee will go towards improving the state’s charging infrastructure.
The fees are relatively small, but they come at a bad time as General Motors and Tesla have sold over 200,000 vehicles which quality for a federal tax credit. As a result, the incentive is being phased out and starting next year Tesla buyers won’t be eligible for a $1,875 tax credit.
