LANSING, Mich. (Michigan News Source) – Some are seeking legislation that would make owning an Electric Vehicle not as cheap as it has historically been.  

While EV owners incur a high state car registration fee that averages roughly $140, they do not have to pay for the state gas tax which helps fund many projects around the state.  Last January, registration fees rose for electric vehicles from $135 to $140 and the plug-in hybrid fee increased from $47 to $50.  The road building industry is among many who are asking Governor Gretchen Whitmer along with the new legislature to find new taxes for EVs. 

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“As the industry transitions, we have to have a way to pay for roads and bridges that transition as well,” Whitmer said. 

Numerous states including Oregon and Utah already have a volunteer based Vehicle Miles Traveled (VMT) tax to help offset the loss of revenue from their gas taxes.  Michigan does not currently have a plan in place, though Whitmer has voiced her confidence that one can be created in Michigan. 

“I’m not going to embrace something that  I haven’t had the opportunity to study and work with the legislature to see if we can get it over the finish line,” the governor said. 

Currently, Michigan ranks sixth in the highest gas tax in the nation, 70.1 cents per gallon, after factoring in the 18.4 cent per gallon federal gas taxes, the state fuel tax, and 6% state sales tax according to the Washington Examiner.  In 2023, the state will see another tax increase to account for the state’s inflation adjustment required by state law. 

“Most environmentalists that I talk to are very pragmatic people and they understand if you’re going to encourage people to transition to EVs, we have to build up the infrastructure to support it,” Whitmer said. 

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As Michigan continues to take steps towards more electric vehicles in the state, fewer cars will pay the gas tax which will mean that the state will have to develop alternative means of funding transportation, road, and school projects.