New bill proposed in Florida to add annual fee for electric car, hybrid owners in lieu of gas tax

TAMPA, Fla. - A new bill filed in the Florida legislature would add an extra annual fee for electric car and plug-in hybrid owners to make up for not paying a gas tax.

Senate Bill 28 proposes adding an extra license fee in 2024 for electric vehicles and plug-in hybrids starting in 2024. 

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It would cost EV owners $200 more a year and then go up to $250 by 2029. Plug-in hybrid owners would pay an extra $50 license tax and then go up to $100.

"I don’t think that will be a smart idea. I don’t think that will be good at all honestly," said Dee Delaney, a Tesla owner in Tampa. "I don’t really feel like it benefits the electric car driver."

Electric vehicles are becoming more common to see on the roads. Three years into his electric vehicle repair business, Chad Reel said he’s taking more and more calls for his services in Tampa.

"Primarily I focus on Tesla but now more and more manufacturers are coming out," said Chad Reel, the owner of Reel Deal EV. "But most of those cars are new enough now that they are still under warranty, so there’s really no sense in taking it to somebody that’s outside."

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Reel said he’s seen the growth in popularity of EVs, especially with the addition of charging stations around Tampa Bay. 

"For me, it’s just an economic thing, purely economics to me where I have another vehicle that is gasoline where we spent probably about $60-70 a week versus maybe $15 for this," said Willie Washington, a Tesla owner in Wesley Chapel.

The goal of the proposed bill would be to help make up for lost gas tax revenue that helps build roads. Some EV drivers said their switch to sustainability shouldn’t ignite more fees.

Drive Electric Florida said the proposal is fair.

"We support the idea that every driver should pay for their use of the roads, just like gasoline vehicle drivers pay," said Bruce Edelston, the senior advisor with the Alliance for Transportation Electrification and co-chair of the Policy Committee for Drive Electric Florida.

But the organization said the bill needs a tune-up. As is, the bill would have one of the highest fees in the country, almost twice what gas car drivers pay in taxes, according to Edelston.

"We're pushing for a lower fee, something on the order of $125 or so," said Edelston. "The extra fees paid by EVs are going to be so small that it's not going to make it at all and the overall highway funding for the state. I think it's more, more matter of fairness."

Some owners said they already pay a premium, like higher insurance or dealer repairs. So, another cost is not ideal.

"Obviously the state has to get money and a $200 fee a year wouldn’t be great, but it wouldn’t cause me to get rid of my vehicle," said Reel.

It is not the first time Florida has tried to put extra fees on electric cars and plug-in hybrids after a similar bill failed in 2021.