Tennessee lawmakers are pushing for a $300 EV registration tax

The proposed transportation infrastructure measure is being funded by a set of new road-related regulations that Tennessee Governor Bill Lee is considering. This proposed new law will increase the registration fee that owners of electric vehicles must pay. Since EV owners are exempt from the gas tax, the fee will cover those taxes.

In this manner, the state is able to keep its annual budget for repairing and maintaining its roads. Butch Eley, the commissioner of transportation for Tennessee, has suggested a $300 annual fee to bring EV owners into line with what the state believes gasoline users spend on the tax. The “gas tax” won’t be raised, according to Governor Lee.

The Associated Press reported that Lee stated at a press conference that “we want to make sure there is a fair fee for everyone… We’ll find that number and move forward.  Conversely, Lee doesn’t want to completely discourage the adoption of EVs as Tennessee is planning to manufacture electric pickup trucks production.   

At least 31 additional states impose EV fees, with rates ranging from $50 in Colorado to $225 in Washington. Tennessee will have the highest EV fee yet if the legislation is passed. In addition to the significantly increased EV price, Lee is also thinking about implementing express toll lanes on roads to help pay for the law. However, numerous studies have discovered that expanding the amount of land and roadways doesn’t actually reduce traffic. This is because more people utilize highways when they are expanded.

Lee says the timing is crucial to pivot quickly to roads. State transportation officials estimate that $26 billion in improvements are required to relieve the rising congestion due to Tennessee’s rapid population expansion and truck traffic.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.