Alberta EV drivers face new tax to pay for roads

Alberta's proposed $200 electric vehicle (EV) tax, introduced in the spring budget by Finance Minister Nate Horner, will come into effect in early 2025. The fee offsets lost fuel tax revenues and addresses increased road wear due to heavier EV batteries.

Bill 32, which outlines the additional $200 fee for EV registration, has passed the Alberta legislature but has not yet been proclaimed into law. The fee will not be implemented at the start of the new year, leaving many EV owners who pre-registered their vehicles to avoid the cost frustrated.

Minister Horner initially defended the fee, arguing that EV owners currently avoid paying fuel taxes, which are critical for maintaining Alberta’s highways. Additionally, the heavier weight of EVs due to their batteries is cited as a factor contributing to road wear.

The Electric Vehicle Association of Alberta (EVAA) has voiced its opposition to the tax. In a statement to CityNews, EVAA President William York criticized the flat fee as unfair, particularly to drivers of smaller or low-mileage EVs.

“We also take issue with the flat $200 fee and the reason given that EVs are heavier and therefore cause more road damage. The flat fee is punitive to small EV drivers or those who drive fewer miles. Many, if not the majority, of EVs weigh less than gas vehicles,” York stated.

Despite the whining of EV owners, Alberta's new registration fee for EV's brings it online with many state legislatures in the United States making efforts to recoup infrastructure costs. 

According to the National Conference of State Legislatures, 39 states now mandate special registration fees for electric vehicles (EVs), including battery-powered electric vehicles (BEVs) and other non-emission or alternative fuel vehicles. Among these, 32 states also impose fees on plug-in hybrid electric vehicles (PHEVs) or non-plug-in hybrid vehicles with combustion engines. These charges are applied on top of standard motor vehicle registration fees.

EV registration fees vary significantly, ranging from $50 in Colorado to as much as $290 in New Jersey, starting in 2028. Hybrid vehicle fees generally fall between $50 and $150, depending on the state.

Sheila Gunn Reid

Chief Reporter

Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.