Senate Transportation Committee Backs Electric Vehicle Fees
Annual fees of $50 a year would be imposed on plug-in hybrids that use a combination of electricity and gas and $25 fees would be imposed on electric motorcycles.
December 07, 2023 at 01:54 PM
4 minute read
State and Local GovernmentFlorida lawmakers have restarted a move to impose annual registration fees on electric vehicles amid pushback over the proposed amount.
The Senate Transportation Committee on Wednesday backed a proposal (SB 28) that would require electric-vehicle owners to pay $200 registration fees to try to offset anticipated losses in gas-tax dollars as more people convert to electric and hybrid vehicles.
Annual fees of $50 a year would be imposed on plug-in hybrids that use a combination of electricity and gas and $25 fees would be imposed on electric motorcycles.
Bill sponsor Ed Hooper, R-Clearwater, called the proposal an issue of "fairness" for everyone who uses the state's road system. He said the fee structure is based on figures from the Electric Drive Transportation Association.
The association projects motorists who drive 10,000 miles a year pay about $190 a year in federal, state and local gas taxes, Hooper said. For people who drive 12,000 miles a year, the combined taxes come to about $228 a year, he said.
Gas-tax money is used to pay for transportation projects.
"So, to remain silent on this issue for very long is eventually going to put the state in a crisis where we can't have adequate transportation capacity," said Hooper, who chairs the Senate Transportation, Tourism and Economic Development Appropriations Committee.
But a Tesla lobbyist, Sen. Tracie Davis, D-Jacksonville, and Sen. Joe Gruters, R-Sarasota, said the proposal could result in electric-vehicle owners being "double taxed."
"Electric-vehicle owners pay tax when they purchase electricity, either at a charging station or at their house," Gruters said.
Lobbyist Jeff Sharkey, who represents Tesla, said the automaker projected the appropriate fee at about $135 based on the Electric Drive Transportation Association calculations.
"What we would like to see in really going forward is really looking at what that baseline fee would be," Sharkey said.
The proposal has the backing of the Florida Chamber of Commerce and the Florida League of Cities.
Ananth Prasad, president of the Florida Transportation Builders' Association, said electric vehicles are "highly subsidized" under a federal law known as the 2021 Infrastructure Investment and Jobs Act, which earmarked $7.5 billion toward electric-vehicle infrastructure.
"There's a heavy amount of subsidy already given to encourage people to drive electric vehicles," Prasad said.
But Leighanne Boone of the Rethink Energy Action Fund called the proposal "punitive," as families are choosing electric vehicles because they are less expensive to drive.
Darryl Alfred, who uses an electric vehicle as a rideshare driver in Tallahassee, said the fees could create a disincentive for electric-vehicle ownership in disadvantaged communities.
"After doing some research I found that I could afford the high payments [of an electric vehicle], but only if I stayed steady at work," said Alfred, who also works as a real estate agent. "Part of what made this possible was the lack of fuel, oil changes and other fees and maintenance typical of vehicle ownership."
The Senate approved a similar proposal during the 2023 legislative session, but the measure did not advance in the House. Hooper's bill is filed for the 2024 session, which will start Jan. 9.
The House Transportation & Modals Subcommittee will take up similar legislation (HB 107) on Thursday.
State economists have projected the proposed registration fees would generate $65 million a year, with nearly two-thirds going into the State Transportation Trust Fund and the rest picked up by local governments.
The Florida Department of Transportation's 2021 EV Infrastructure Master Plan found the use of electric vehicles could result in a drop of 5.6 percent to 20 percent in "motor-fuel based revenue streams" by 2040. The percentage varied depending on the rate of EV sales.
According to the U.S. Department of Energy, Florida is second to California in the number of registered electric vehicles. The federal agency based its numbers on data from the National Renewable Energy Laboratory and Experian Information Solutions.
As of the end of 2022, Florida had 167,990 registered electric vehicles, up from 95,640 a year earlier. At the end of 2020, Florida had 58,160 registered EVs.
A Senate staff analysis said 32 states impose some form of registration fee on electric vehicles. Of those, 19 states include a fee on plug-in vehicles that operate on a combination of electricity and gasoline.
Under Hooper's proposal, the annual Florida electric-vehicle fee would go up to $250 starting in 2029. The hybrid fee would increase to $100 in 2029, with the electric motorcycle fee going to $35.
Jim Turner reports for the News Service of Florida.
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1South Florida Attorney Charged With Aggravated Battery After Incident in Prime Rib Line
- 2'A Death Sentence for TikTok'?: Litigators and Experts Weigh Impact of Potential Ban on Creators and Data Privacy
- 3Bribery Case Against Former Lt. Gov. Brian Benjamin Is Dropped
- 4‘Extremely Disturbing’: AI Firms Face Class Action by ‘Taskers’ Exposed to Traumatic Content
- 5State Appeals Court Revives BraunHagey Lawsuit Alleging $4.2M Unlawful Wire to China
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250