Colorado Imposing Fees On Electric And Alternative Vehicles

Joining a growing number of states that are imposing fees on electric and alternative vehicles, Colorado is seeking to recover "lost" gas tax revenues. As of this year, Coloradans driving electric, alternative fuel, and high-efficiency vehicles will pay a $50 registration fee to capture more revenue from vehicles that use less traditional gasoline. This is part of a growing trend by which states are looking to recoup declining gas tax revenues as vehicles become more fuel efficient and drivers buy more electric vehicles.

Colorado is one of at least five states that have special fees on hybrid and electric vehicles — Colorado, Nebraska, North Carolina, Virginia, and Washington. Earlier this year, Oregon lawmakers were discussing a bill that would impose a fee on electric cars and those getting 55 miles per gallon or better. The bill is still sitting in the state legislature.

The problem state lawmakers face is that the value of the gas tax is falling due to inflation and rising construction costs. This is coupled with the fact that gasoline consumption is falling. According to the Energy Information Administration, U.S. drivers and businesses used about 133 billion gallons which is 6 percent below 2007’s record-high consumption levels.

There is a similar problem on the federal level where gas tax revenues have lost one-third of their value since 1993, fueling predictions that the federal Highway Trust Fund could face insolvency in 2015 if this trend continues.

However, it’s not just electric vehicles that are in the crosshairs of states looking to bring in more funds. Some states are looking to tax drivers for how many miles they drive instead of how much fuel they consume. Oregon is already planning on launching their own round of VMTs, a program to tax cars on how much they drive. Federal lawmakers are also currently discussing such a tax.

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