Owners of fully electric and plug-in hybrid vehicles in Florida might soon have to pay annual registration fees. The lawmaker’s goal is to offset the anticipated losses from the revenue of gas-related taxes as the number of EVs rapidly increases across the state causing sales of motor fuel to drop.
The proposed annual fees are $200 for electric cars, $50 for PHEVs, and $25 for electric motorcycles. These would increase to $250, $100, and $35 respectively in 2029, when there will be far more electrified vehicles on the roads. According to state economists, the new registration fees would initially generate $65 million a year.
The new proposal backed by the Florida Senate Transportation Committee, Florida Chamber of Commerce, and Florida League of Cities, is filled for the 2024 legislative session starting January 9. It follows a similar proposal in 2023 that failed to advance in the House.
More: Texas EV Owners Must Pay A $200 Annual Registration Fee From September 1st, 2023
Ed Hooper, a Republican member of the Florida Senate and bill sponsor, believes that imposing those fees is an issue of “fairness” among users of the state’s road system, as the gas tax is used to pay for transportation projects. Hooper added that remaining silent on this issue for very long “is eventually going to put the state in a crisis” without adequate transportation capacity.
The 76-year-old politician said that the proposed fees are based on data from the Electric Drive Transportation Association. However, according to Tesla representative and lobbyist, Jeff Sharkey, the EV maker projects the appropriate fee at $135 using the same data for calculation.
As reported by NBC Miami, owners of ICE-powered vehicles that drive 10,000 miles a year pay around $190 in combined gas taxes (federal, state, and local), while those who drive 12,000 miles a year pay $228.
Among those opposing the proposal are Florida Senators Tracie Davis and Joe Gruters who believe that an additional registration fee for electrified vehicles would be a case of double taxation as EV and PHEV owners already pay tax on the electricity used for charging. Some claim that an extra fee would be “punitive” for prospective EV buyers, while others argue that EVs have already been heavily subsidized.
According to the US Department of Energy, Florida has the second-largest number of registered EVs among US states behind California. Data from previous years show a rapid increase in EV registrations, with 167,990 units in 2022, up from 95,640 units in 2021 and 58,160 units in 2020.
The 2021 EV Infrastructure Master Plan conducted by the Florida Department of Transportation predicted a drop between 5.6% and 20% in the “motor-fuel-bases revenue streams” by 2040, depending on the number of EV sales.
Today, 32 US states impose some sort of an annual registration fee on EVs including Washington, Georgia, Arkansas, Texas, and Ohio, while 19 of those impose a similar fee on PHEVs.
