Tennessee Department of Transportation and Governor Bill Lee heads to push at the state level to raise Tennessee’s electric vehicle registration fees, as reported by Fox 17 WZTV Nashville
Notably, it is called the Transportation Modernization Act of 2023.
The TDOT sees this act as beneficial because they said since electric vehicles do not generate any gas tax revenue, this would equalize the amount collected from them.
“We’re looking at ways that we can create parity between what a combustion engine pays now in the gas tax, and what our electric vehicles will pay in the future.”
TDOT Commissioner Butch Eley
The TDOT commissioner added that Tennessee electric vehicle registration costs roughly $100 annually. Additionally, this proposed piece of legislation will be submitted by TDOT this month.
Why are electric car registration prices increased?
According to Fox 17 WZTV Nashville:
· To even things out with standard gas and diesel-fueled cars.
The transportation department’s data stated that standard petrol and diesel cars generate around $300 in gas taxes annually, which is why the state wants to increase EV registration to show fairness.
· State needs more funds.
Governor Bill Lee claims the state of Tennessee needs to do more, as financing for state highways is far behind schedule.
“We don’t want to take on debt. We don’t want to raise taxes on people to build more roads. But you know, more than anybody, that we need to be investing in highways, and roads in the state, we have, we have not done enough.”
Gov. Bill Lee
Considering this is a controversial topic, especially among vehicle owners in general, some express that this proposal is fair, while others don’t.
One of the people who disagree with this act is Rep. John Ray Clemmons.
“When you increase a fee on an electric car by 300% that is a tax on a working family. You can call it whatever you want, but that is taxing Tennessee’s workers and Tennessee’s families. So, if they want to try to distinguish between fees and taxes, good luck to them, all that people know is that they’re paying more for and getting nothing in return.
Rep. John Ray Clemmons
