HARRISBURG, PA — State Rep. Ed Neilson, D-Phila., chair of the PA House Transportation Committee, announced a bipartisan agreement for new legislation aimed at ensuring electric vehicle (EV) owners contribute fairly to Pennsylvania’s road and bridge upkeep. The state House passed Senate Bill 656, which proposes replacing the cumbersome Alternative Fuel Tax with a more straightforward annual fee for EV owners.
Addressing Fairness and Simplicity
“Everyone who uses Pennsylvania roads should have to pay their part to help keep our roads safe and our bridges in top shape,” Neilson stated. He expressed satisfaction with the solution that balances fairness and convenience for EV owners. Under the current system, EV owners must self-report their electricity usage and pay a tax monthly, a process many find burdensome and often neglect due to unawareness.
New Fee Structure
The new bill will replace the Alternative Fuel Tax with a fixed annual fee. Starting in 2025, EV owners will pay $200, increasing to $250 in 2026. This fee will then adjust annually based on the Consumer Price Index. Owners can choose to pay the fee yearly or in monthly installments. Plug-in hybrid electric vehicle owners will face a reduced fee of $50 in 2025, rising to $63 in 2026.
Broad Support and Environmental Backing
Neilson highlighted the collaborative effort behind the bill, which included input from various organizations and environmental groups like PennFuture. “The electric vehicle industry, car manufacturers, and environmental advocacy organizations, including PennFuture, came together to help make this bill better,” Neilson said.
Legislative Details
Senate Bill 656 amends several provisions in Title 75 of the Pennsylvania Consolidated Statutes. It eliminates the alternative fuel tax on electricity for EVs and introduces an EV fee of $380 for noncommercial vehicles and $450 for commercial ones. These fees will be tied to vehicle registration, ensuring compliance and easing the payment process.
Ensuring Infrastructure Funding
The revenue from these fees will go into the Motor License Fund, dedicated to highway maintenance and construction. This move aligns EV owners’ contributions with those from gasoline-powered vehicle users, who already pay fuel taxes.
Next Steps
With the House’s approval, the bill now returns to the Senate for concurrence. If passed, the new legislation will streamline the tax process for EV owners and ensure they contribute their fair share to the state’s transportation infrastructure. Neilson and his colleagues are optimistic that these changes will benefit both the environment and Pennsylvania’s extensive network of roads and bridges.
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