HARRISBURG – Legislation sponsored by State Sen. Greg Rothman (R-34) to eliminate Pennsylvania’s Alternative Fuels Tax (AFT) on electric vehicle (EV) owners and replace it with a flat fee is set to become law. Senate Bill 656 significantly reduces the procedural burden on EV owners, simplifies the process, and eliminates the need for intrusive monthly reports.
“This legislation will simplify government for electric vehicle owners and ensure all drivers are contributing toward the maintenance of Pennsylvania’s roads and bridges,” Rothman said.
Currently, owners of EVs are required to file monthly statements with the Pennsylvania Department of Revenue and remit the alternative fuel tax on how much electricity their vehicle uses. However, most EV owners do not do this, or are inconsistent at doing so, due to the cumbersome process or simply being unaware.
The final version of Senate Bill 656 passed today 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.
- $200 in 2025
- $250 in 2026
- Tied to Consumer Price Index (CPI) increase thereafter
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.
Like Pennsylvania’s gas tax, the revenue from the flat EV fee will be deposited into the Motor License Fund for highway maintenance and construction.
The measure has been sent to the governor for his signature.
CONTACT: Morgan Wagner