Indiana Considers Repeal of $150 Annual Electric Vehicle Fee

Indiana may be the first state in the nation to reconsider their supplemental fee on electric vehicles. In 2017, the Indiana legislature added an annual fee of $150 to register an electric vehicle and $50 to register a hybrid vehicle. House Bill 1227 introduced by Rep. Carey Hamilton and Rep. Rita Fleming would repeal those supplemental fees entirely.

Lost Gasoline Tax Revenue

State legislatures have been targeting plug-in electric vehicles for extra annual registration fees in recent years. About half the states charge these additional fees to make up for lost revenue on state gasoline taxes. West Virginia enacted a $200 annual fee on electric vehicles in 2017.

Electric Vehicle Fee Fair or Punitive?

Last year, Illinois proposed a $1,000 registration fee on electric cars that caused an outcry before they backed off and passed the bill with a lower amount. Some EV advocates say the fees are punitive and chills the market for cleaner cars. Others say it’s fair that all drivers contribute to the cost of the roads.

Indiana HB1227 has been referred to the House Roads and Transportation Committee.

A Fiscal Impact Statement prepared by the Office of Fiscal and Management Analysis says that the potential revenue loss is estimated to be between $410,000 and $650,000 during Fiscal Year 2022 if the bill is passed.

Track this and other EV bills here: Electric Vehicle Legislation Tracker