by Michael Gauthier
- The cost of registering an EV in Michigan is climbing by $100.
- State is now tied for having the highest EV fee in the country.
- EV owners were already paying more than drivers of ICE cars.
Between tariffs, inflation, and the elimination of the clean vehicle tax credit, going electric isn’t cheap. Michigan is now piling on with additional fees to help pay for road funding, as a massive tax on marijuana wasn’t enough.
The details are pretty convoluted, but MLive reports that Michigan recently decided to eliminate the sales tax on gas and introduce an increased fuel tax.
The increase is the same as the one that was removed, so they essentially cancel each other out. That’s a roundabout move, but it will result in more money going towards repairing Michigan roads.
More: Some States Give Up To $9,000 To Buy An EV, Others Charge You Hundreds
However, there are other implications as the publication noted “state law requires an increase of $5 to the EV registration fee, and an increase of $2.50 to a [plug-in] hybrid vehicle registration, per 1 cent raise of the state’s gas tax.”
So while drivers of traditional gas-powered vehicles pay the same, eco-friendly vehicles get hammered by higher fees.
This reportedly means registering an EV will now cost Michigan drivers an extra $100 annually, which brings the fee to $260, on top of regular registration costs. Likewise, the fee for electric trucks will presumably increase to $360.
Michigan Energy Innovation Business Council policy principal Sophia Schuster told the publication, “By raising EV fees to the highest in the country, the state is discouraging adoption and signaling to automakers that Michigan is not serious about leading in transportation electrification.”
The organization noted that before fees were increased, Michigan EV drivers were already paying around $20 more in state taxes than people with ICE-powered vehicles.
They also pointed out EVs are typically driven 4,500 miles (7,242 km) less annually than ICE vehicles, so owners are “paying more for roads they use less.”
Help could be on the way as there’s a proposal to significantly lower fees for plug-in hybrids and EVs. Of course, only time will tell if these changes are adopted.
