A growing number of states are charging drivers electric vehicle registration fees to offset lost fuel tax revenue.
What is this fee?
Is an electric vehicle still worth it?
Well break it down.
What Is an Electric Vehicle Registration Fee?
Electric vehicles come with a variety of benefits, including reduced maintenance requirements and quieter operation.
But one of the biggest factors driving growth in EV sales isfuel savings.
In short, because electric vehicles dont require gas, you save money at the pump.
But this move toward EVs poses a problem for local governments.
Taxes from fuel sales fund expenses like road maintenance.
As fewer vehicle owners buy fuel, that tax fund dwindles, but roads still need to be maintained.
Some EV owners pay more than $200 a year to register or renew their tags.
Hybrid vehicle ownersalso are on the hook.
The fees may be lower, but most of these states also are charging extra fees for plug-in hybrids.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Budgeting for EV Registration Fee Hikes
These fees dont have to sneak up on you.
Bills like these often make their way through the legislature throughout the year.
Keep an eye on electric vehicle legislation that might increase existing fees or introduce new ones.
Your state also may not yet have a hybrid car registration fee.
A smaller group of states charge a fee for hybrid vehicles that dont rely on an external power source.
Did you know?
Every persons case is different.
Here are some of the top incentives available to electric vehicle owners.
Some are as much as $7,500.
Department of Energyhas a search tool for that.
If so, youll need to fileForm 8936.
But tax credits arent limited to your federal tax filing.
Many states have tax credits and rebates available for electric and hybrid vehicle owners.
Youll also find discounts on utility bills in some areas.Check this listto verify you arent missing anything.
HOV Lane Access
Sitting in traffic can be a pain.
In at least 20 states, youll get some form of HOV lane privilege.
Dont just start driving in theHOV lane, though.
Checkyour states requirementsbefore you hit the road.
Some states issue a special license plate.
Others require a decal or express lane pass to drive alone in the HOV lane.
Home Charger Installation Assistance
Being able to charge your vehicle at home can make EV registration charges worth it.
However, unless you might roll out the charger on your own,electric vehicle charger installationcan be pricey.
As youre looking around for rebates and tax credits, keep an eye out for home charger installation rebates.
Local utility companies sometimes offer these, but youll also sometimes see tax credits for installation in certain areas.
For instance, theU.S.
Department of Energyestimates that EVs can save drivers about $14,500 in fuel costs over 15 years.
As more states enact electric vehicle registration fee legislation, EV and hybrid owners should keep a close watch.
Being prepared will allow you to enjoy your ongoing cost savings without that sticker shock at renewal time.
Stephanie Faris is a professional finance writer with more than a decade of experience.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
