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Senate advances phased mileage‑based fee for electric vehicles; committee narrows scope and orders study

Senate Finance · April 30, 2026

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Summary

Senate Finance debated a phased mileage‑based user fee (MBUF). Members agreed to start with battery electric vehicles, require a study for expansion, and remove proposed jet fuel and certain purchasing‑use tax provisions; the committee voted to advance a narrowed draft and to favorably report a floor motion with draft amendment 1.1.

The committee considered a mileage‑based user fee proposal that would move some vehicles off the pump‑based fuel tax and onto a per‑mile fee. Under the phased plan discussed, battery electric vehicles (EVs) would be moved to an MBUF first (beginning Jan. 1 after enactment), fuel‑efficient plug‑in hybrids and high‑MPG internal combustion vehicles would be considered in a second phase (2029), and all light‑duty vehicles could be considered in 2031, with an offset credit for estimated fuel‑tax payments and a cap included in the draft.

Agency of Transportation staff told the committee DMV and back‑office upgrades would automate billing and that individual motorists would not need to file forms; the system would calculate charges and mail a bill. Committee members debated fairness for heavier vehicles and concerns about incentives (whether people might buy lower‑mileage vehicles to avoid charges). The bill contains an appeals process with a 45‑day window for administrative appeals and judicial review if the taxpayer is unsatisfied.

After discussion, the committee moved a narrowed draft that phases in EVs and includes a study and reporting requirements for later phases. A motion to report House bill 944 with draft amendment 1.1 (the narrowed approach: EVs plus study) was moved and the committee voted in favor. Lawmakers said the phased approach and DMV automation would minimize burdens on individual drivers while giving the state time to evaluate administrative details and fairness concerns.