Bethani Cameron: Bipartisanship closes EV road use tax loophole

Pennsylvania has two important goals when it comes to the future of transportation: maintaining our infrastructure and reducing emissions. But until recently, those two priorities were at odds. Thanks to bipartisan leadership in Harrisburg, a new bill increases funding for roads and transit, while making it easier than ever to own an electric vehicle (EV).

Our Motor License Fund pays for maintenance of roads, bridges and multimodal transportation in Pennsylvania. That money comes from our $0.576/gallon gas tax. But if you look at your receipt next time you fill up, you won’t see “tax” listed like you would on a restaurant receipt. Just gallons, price per gallon and the total amount you have paid. For an average 15-gallon tank, each fill-up puts $8.64 into the fund.

But a gas tax only applies to gasoline-powered vehicles.

Before a recent bill, owners of electric vehicles had a wild process for contributing to our shared roads. They just made sure that the charger they installed in the home that they own included an electricity meter, logged the energy pumped into their battery with each charge, multiplied the energy used by the tax rate listed on the Department of Revenue’s website, recorded all that information on a form online, and printed, signed and mailed their self-report (along with payment) for their prior month’s usage by the 20th of the following month. Repeat monthly. All of that is assuming that they even know this was required of them. Simple, right?!

By all accounts, compliance with this convoluted process was inconsistent. And honestly, I am not surprised. I was a teen the last time I recorded gallons and mileage, trained to do so at every fill-up in a small paper notebook kept in my glove box. Yes, it makes me feel old.

SB 656, now Act 85, sponsored by Sen. Greg Rothman, R-Cumberland County, creates a straightforward payment added to annual registration fees. It’s a flat fee that starts at $200 in 2025, goes to $250 in 2026 and beyond that stays tied to inflation. That fee can be paid all at once or in installments: $16.67 per month in 2025 and $20.83 per month in 2026.

Some have argued that these fees could deter folks from buying EVs. But is that true? We know the high cost of EVs puts them out of reach for the majority of Pennsylvanians (this Pennsylvanian included). According to Kelly Blue Book, the average cost of an electric vehicle as of June 2024 was $56,371. I doubt adding $200 to that price will deter folks who are able to pony up that kind of money. It’s the equivalent of the tax that gas-powered vehicle owners pay for 113 gallons of gasoline. At 30 miles per gallon, that would take you 3,390 miles. Most car owners drive more than 10,000 miles each year.

There is much more to say when it comes to road use: EVs weigh considerably more than fossil-fueled vehicles, so they are better for our health and they are harder on our roads. The revenue from these fees will not fill the chronic gap in the Motor License Fund that strains our ability to keep our roads and bridges in good condition. This is a good step in a much larger conversation on transportation funding in Pennsylvania, and we at Mobilify will be here to help facilitate and advance that conversation.

What it does is remove a ridiculous self-reported tax and make it simple and easy to pay. It ensures that folks making the switch to cleaner, electricity-powered vehicles pay their fair share of road maintenance. And critically, SB 656 shows that good legislation is possible in Harrisburg. It was introduced by a Republican legislator, amended by a Democratic legislator, negotiated vociferously by leaders in both the House and Senate, and passed with overwhelming support in both chambers from members of both parties.

It’s a bipartisan solution to a pressing issue. Is it perfect? Nope. It’s good.

Bethani Cameron is deputy director of Mobilify Southwestern Pennsylvania, which works to revitalize and strengthen transportation networks to ensure equitable transportation goals for all in Southwestern Pennsylvania.