Owners of non-commercial electric vehicles will now have to pay an annual fee to the Motor License Fund. 

Senate Bill 656 was signed into law July 17 by Governor Josh Shapiro. 

The bill, sponsored by Senator Greg Rothman (R-34), amends several sections of Title 75 affecting non-commercial vehicles to repeal the Alternative Fuels Tax on Electricity (AFT) and impose an annual fee on those vehicles to be deposited into the Motor License Fund. 

Commercial vehicles over 14,000 pounds are not affected by the amendments. Their owners will continue to be required to pay the Alternative Fuels Tax on electricity used to power their vehicles.

Language within the bill creates Section 9024 to impose an annual Electric Vehicle Road User Charge (EV Fee) on owners and registrants of EVs and PHEVs with a gross vehicle weight of no more than 14,000 pounds. The EV Fee is concurrent with paying the vehicle registration fee and would be as follows:

• $200 in 2025
• $250 in 2026
• Each January 1 thereafter, the EV Fee must be adjusted for inflation rounded to the nearest dollar.

For example, electric vehicle owner will pay $200 in taxes when renewing their vehicle registration starting January 1, 2025. Plug-in hybrid electric vehicle owners will pay a flat annual fee equal to 25% of the electric vehicle fee — or $50.

The fee would be assessed simultaneously with the annual vehicle registration, though the state Department of Transportation has been asked to give motorists the option to pay the EV fee in monthly installments.

If the fee is not paid, the registration will not be considered valid for law enforcement purposes.

In the bill memo, sponsor Sen. Rothman stated, "Currently, owners of electric vehicles file monthly statements with the PA Department of Revenue and remit the alternative fuel tax on how much electricity their vehicle uses. However, most electric vehicle owners do not do this, or are inconsistent at doing so, due to the process for remitting the alternative fuel tax being cumbersome. In addition, many electric vehicle owners are not aware they are required to file a monthly statement to the PA Department of Revenue. This legislation will simplify the process and ensure electric vehicle owners are paying their fair share towards the Commonwealth’s transportation infrastructure, just as individuals who drive gas powered vehicles contribute towards fuels taxes."

The bill was co-sponsored by Senator Cris Dush (R-25) and Senator Judy Ward (R-30). 

You can read the bill in its entirety here: https://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2023&sind=0&body=S&type=B&bn=656