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Alternate EV surcharge proposal moved to Taxes Committee; Johnson Stewart proposes higher fees and indexing
Summary
Senate File 2688 would raise the EV registration surcharge to $200, add surcharges for plug‑in hybrids and electric motorcycles, and index the surcharge to inflation; it was moved without recommendation to the Taxes Committee.
Senator Lyndsay Johnson Stewart presented Senate File 2688, a proposal similar to other bills considered the same day, to the Senate Transportation Committee on March 26, 2025. The bill would raise the annual electric vehicle registration surcharge from $75 to $200, impose a $100 surcharge on plug‑in hybrid electric vehicles, and establish inflation indexing consistent with the gasoline tax. Revenue from the surcharges would be deposited in the Highway User Tax Distribution Fund.
Nut graf: The bill’s sponsor described it as a straightforward method to capture revenue from vehicles that use electricity instead of gasoline and to maintain highway funding in the face of declining gas‑tax receipts.
Senator Johnson Stewart noted the bill’s revenue would be directed to the Highway User Tax Distribution Fund. She and other supporters said the surcharge approach is administratively simpler than a telemetry‑based VMT program. Committee discussion echoed earlier points: equity for lighter/cheaper hybrids versus heavy EVs, tourism and towing vehicle needs, and whether fees should account for vehicle weight or usage. Senator Sarah McEwen pressed concerns that some hybrids and lower‑weight vehicles should not be unfairly penalized.
Senator Johnson Stewart moved SF2688 to the Taxes Committee without recommendation; the motion carried on a voice vote.
Ending: The Taxes Committee will review fiscal and implementation details, including revenue estimates and equity implications.
