Pennsylvania Imposes Electric Vehicle Road User Charge, Eliminates Alternative Fuels Tax on Electricity for Residential Charging

By Rita L. Eng

Pennsylvania has enacted legislation to impose an annual electric vehicle road user charge (EV Fee) on owners and registrants of electric vehicles and plug-in hybrid electric vehicles with a gross vehicle weight rating of not more than 14,000 lbs. In addition, the alternative fuels tax on electricity is eliminated for residential charging. (L. 2024, S656 (Act 85), effective 01/01/2025, unless otherwise stated.)

Electric vehicle road user charge.

Electric vehicles: The EV Fee on electric vehicles is $200 upon initial registration in 2025 or upon renewal of registration submitted to the Pennsylvania Department of Transportation for a registration that expires in 2025. The fee increases to $250 in 2026.

Plug-in hybrid electric vehicles: The EV Fee on plug-in hybrid electric vehicles is 25% of the EV Fee for electric vehicles, rounded to the nearest dollar. The EV Fee on plug-in hybrid electric vehicles is: $50 in 2025; and $63 in 2026.

Inflation adjustments: Starting January 1, 2027, and each January 1 thereafter, the EV Fee must be adjusted for inflation, rounded to the nearest dollar.

Exceptions: The following electric vehicles and plug-in hybrid electric vehicles are not required to pay the EV Fee: golf carts; neighborhood electric vehicles; motorcycles or other vehicles with less than four wheels; vehicles that are not required to be registered with the Pennsylvania Department of Transportation; vehicles registered to a person exempt from reporting and paying a tax on liquid fuels, fuels or alternative fuels; qualified motor vehicles; and motor vehicles with a model year of 1990 or older.

Alternative fuels tax on electricity.

The alternative fuels tax on electricity does not apply to a person who provides an electric vehicle charging station used exclusively to charge: electric vehicles or plug-in hybrid electric vehicles at a private residence; or electric vehicles or plug-in hybrid electric vehicles owned by tenants, residents or nonlocal visitors of a common interest development or other group of private residences within a geographic location.