Published 18 hours ago • loading... • Updated 20 hours ago

Michigan EV fees spike under road funding deal, now nation’s highest

This year Michigan drivers of electric and plug-in hybrid vehicles face higher registration fees, with surcharges rising from $160 to $267 and $60 to $113, making it the highest in the nation, according to the National Conference of State Legislatures and the Tax Foundation.
Last fall, lawmakers passed a road funding package raising the fuel tax from 31 cents to 52.4 cents, triggering a 2015 law that increases EV fees by $5 and hybrids by $2.50 per cent above 19 cents.
Michigan Department of State data indicate EVs make up 1.3% of roughly 8 million registrations, with the EV fee hikes expected to generate about $12 million annually and the broader road package about $1 billion this fiscal year.
Sam Singh, D-East Lansing proposed cutting the surcharge to $1.88 and 94 cents per penny, but the bill stalled after a November Senate Appropriations Committee hearing and House Speaker Matt Hall declined to advance it.
State policies like Michigan's fee hike, combined with federal and industry shifts, including the cancellation of the $7,500 federal EV tax credit, are expected to slow EV adoption, despite studies of usage charges amid privacy concerns.

Insights by Ground AI