Pennsylvania Replaces Alternative Fuels Tax With Flat EV Fee

Electric car owners will pay a flat annual fee that lawmakers say will be ‘tied to economic conditions.’

1 minute read

July 14, 2024, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Close-up of red car parked and plugged in at EV charging station with row of cars behind it.

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The Pennsylvania State House and Senate passed a bill that will eliminate the Alternative Fuels Tax (AFT) on electric vehicles (EVs), replacing it with a flat fee, according to a press release from Pennsylvania Senate Republicans.

According to the release, Senate Bill 656 “reflects bipartisan agreement that ensures greater parity for vehicles traveling Pennsylvania’s roads and bridges. The annual flat fee established by this legislation provides for a three-year phase-in period and will ultimately be tied to economic conditions, ensuring continued fairness.”

The fee will be $200 per fully electric vehicle in 2025 and rise to $250 in 2026. Further increases will be tied to the Consumer Price Index (CPI). “Plug-in hybrid EV owners will pay a flat annual fee equal to 25% of the EV fee. Commercial EVs weighing more than 14,001 pounds will continue to be subject to the AFT.”

Thursday, July 11, 2024 in Pennsylvania Senate Republicans

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