Last month, Governor DeWine and the Ohio Legislature passed HB 74, the biannual Transportation Budget. The budget maintains high annual registration fees for electric, plug-in hybrid, and non-plug-in hybrid vehicles.
Amendments to reduce the fees were introduced, but ultimately did not make their way into the final version of the bill, which was signed into law by the Governor on March 31st. The Ohio fees remain some of the highest in the nation.
“Lawmakers had a chance to preserve Ohio’s auto industry for future generations and opted to continue the current and excessive tax burden on electric vehicles, well beyond what owners would pay with a gas tax.” Said CEO Sam Spofforth in a statement issued by Clean Fuels Ohio. “State legislators took a step away from a strong economic future for Ohio.”
Current EV fees generate less than 1% of the Ohio road fund. Rather than consider the EV fee reduction as an investment in revitalizing auto manufacturing in Ohio, the state has clung to negligible funds that are harming the future of the industry.
EV fees are shown to slow plug-in vehicle adoption by as much as 20%. Meanwhile, automakers consider factors like regional demand, as well as state and local policy when determining placement for manufacturing and assembly plants. Globally, automakers are poised to invest more than $300 billion in EVs over the next decade.
The Transportation Budget, which will dictate government spending during fiscal year 2022-23, once again sets registration fees at $200 for all-electric vehicles and plug-in hybrids, and $100 for gasoline-only hybrids. These fees are particularly damaging to low- and moderate-income consumers and small business owners operating EVs for company purposes.
Regrettably, the continuation of these fees signals unfriendliness towards the electric vehicle market, and discourages next generation jobs and transportation electrification.
Clean Fuels Ohio now looks to the future and calls upon state legislature to counteract these sentiments by bringing forth pro-EV policies that incentivize the production and purchase of EVs here in Ohio.
For more information on how you can support these efforts, please contact Marie McConnell, Marie@CleanFuelsOhio.org.