Electric vehicle owners may face new annual fee of $130

New taxes for electric vehicle owners in the US

In Washington, common ground is rarely found, but two key members of the US House Committee on Transportation and Infrastructure have introduced a new bipartisan surface transportation reauthorization bill. It is designed for five years and includes investments in “roads, bridges, transit, rail, and motor carrier safety programs.”

The bill, known as the BUILD America 250 Act, was introduced by Sam Graves (Republican from Missouri) and Rick Larsen (Democrat from Washington). This document spans over 1,000 pages and “focuses on proven surface transportation infrastructure programs.” It also promises “the largest investment in America’s bridges in history” and “the first-ever regulatory framework for autonomous commercial vehicles.”

What the new fee for electric cars entails

While the proposal includes numerous provisions, one of them directs the Federal Highway Administration to introduce new fees for eco-friendly vehicles. Electric vehicle owners would pay $130 annually, while owners of plug-in hybrids would pay $35. These funds would be collected by states and transferred to the federal government.

Starting in 2029, the fees would increase by $5 every two years. However, they would be capped at a maximum amount: $150 for electric vehicles and $50 for hybrids. States may also retain up to 1% of collected funds for “administrative costs.”

Why new payments are being introduced

The new fees are intended to ensure that all drivers pay for road repair and maintenance, as the government currently relies on the federal gas tax, which has not changed in over three decades. It stands at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel.

Other important provisions of the bill

Although this is just one small section of the BUILD America 250 Act, there are other interesting points. As Reuters notes, one of them would require the presence of a human driver in autonomous school buses.

This provision is hidden on page 664 and states: “A safety standard established under subsection (a)(1) shall require that a human operator be inside the vehicle during the operation of any commercial motor vehicle equipped with an ADS that is transporting” hazardous materials or “primarily minors.” The latter obviously includes school buses.

Electric vehicle owners may face a new annual fee of $130

The introduction of a separate fee for electric vehicles and hybrids is a logical step in the context of the outdated fuel tax system, which has not been updated since 1993. As more drivers switch to electric power, revenue from the traditional gas tax decreases, creating a deficit in the Highway Trust Fund. At the same time, this move may spark controversy, as electric vehicle owners already pay taxes when purchasing the vehicle and charging, and the additional annual fee could slow the pace of the transition to eco-friendly transportation. Furthermore, the requirement for a mandatory human driver in autonomous school buses reflects lawmakers’ cautious approach to driverless technologies, especially when it comes to children’s safety.

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