A post on Reddit highlighted a portion of the recent legislative package that was passed by the House in which electric vehicles would see a new annual registration fee of $250.
The original poster explained in the r/TeslaLounge subreddit that they own two EVs and one hybrid (which has a proposed $100 registration fee), so the legislation would raise their expenses by an additional $600 per year.
They said that, in addition to higher insurance and utility bills and potentially disappearing tax credits, the legislation — most famously known by the "Big Beautiful Bill" nickname it was given by supporters — could dramatically impact the EV and hybrid market.
"I don't understand how any of this benefits the people. Please explain," the OP added.
The legislation, which still needs to be passed by the Senate, is a significant departure from the "proposed $20 federal annual registration fee on all vehicles starting in 2031," according to a Reuters report.
Ostensibly, that money is meant to go toward federally funded road repairs. Critics of the legislation say that EV drivers are being targeted because they do not pay the sales tax on diesel or gasoline sales, which goes into the highway trust fund.
EV advocacy group Electrification Coalition told Reuters that a $250 fee was unfair, as the average gas-powered vehicle pays just $88 annually in federal gas taxes.
The move is not unexpected given that the current administration has been signaling its intent to cut EV subsidies, reduce regulations on emissions, and dial back investments in clean energy projects.
Some states already charge EV owners an annual fee ranging between $50 and $250, according to The New York Times, but an outsize burden is being placed on these drivers.
Consumer Reports analyst Chris Harto told the outlet that "EV owners should contribute to paying for the roads that they use." But, he added, "in some cases, states are implementing fees that are pretty punitive to EV drivers, significantly more than what the owner of a gas vehicle would pay."
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Cost 💰 Electric vehicles use energy more efficiently than gasoline-powered models, and they're already saving many drivers more than $1,000 in annual fuel costs, according to the U.S. Department of Energy.
Charging EVs at home using solar panels and a battery storage system can help reduce costs further since owners can use the abundant power of the sun. Consumers looking to upgrade can use EnergySage to help compare quotes from local installers and save up to $10,000 on the project. Palmetto's LightReach solar leasing program also helps homeowners benefit from solar power without the upfront costs.
However, this new legislation could negate some of those savings.
Commenters on the Reddit post all seemed to have similar responses, lamenting the potential increase as a win for the oil and gas industry — a concerning proposition given that dirty fuel pollution is associated with millions of annual premature deaths, whereas EVs don't have tailpipe emissions.
"The logic is oil company bribery to slow down EV adoption. And it works!" wrote one.
"I have 2 electric cars and in [Missouri] we are already paying $125 for a fuel tax sticker, registration, and personal property tax. I really don't want to go backwards and buy ICE again. Seems like there are a lot of backwards things happening," offered another.
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