California has been instrumental in the adoption of electric vehicles, offering prospective buyers various incentives to ensure their next ride won’t require regular trips to the gas station. While the discounts have been successful (California accounts for roughly half of the country’s EV sales), they won’t run in perpetuation.
Autoblog is reporting that the Golden State will begin charging a one-time registration fee of $100 for plug-in vehicles starting with the 2020 model year. It doesn’t end there, however, as the state will also impose a $25 annual registration fee for vehicles with a market value of less than $5,000. Those with higher-end rides valued above $60,000 will see that fee climb to $175 a year.
It’s not that California hates electric vehicles and those that buy them; it simply comes down to basic economics.
The EV fees are designed to help the state recoup tax revenue generated from the sale of gasoline. With fewer people buying gasoline, stations are obviously generating less revenue than before – money that is used to help pay for road repairs and other infrastructure improvements.
California will be following the lead of Nebraska and Missouri which implemented $75 annual fees for plug-ins way back in 2011. Several other states have since done the same including Colorado, Georgia, Idaho, Michigan, North Carolina, Virginia, Washington and Wyoming while half a dozen others have proposed similar bills.