Model 3

Make
Tesla
Segment
Sedan

As the EV market slowly starts to cannibalize the traditional ICE industry, some politicians and state administrations are welcoming the idea of green energy, but others are not so convinced. You see, fuel tax brings in a ton of cash every year, and with more EVs on the road, that will eventually erode tax incomes, and if there's one thing the government hates, it's less tax income. States like Nebraska are now fighting back at Tesla Model 3 owners and Nissan Leaf drivers with a new bill being pushed by Senator Curt Friesen. The bill, if passed, will see EV owners in the state pay significantly higher registration fees in order to get their car on the road, and is seen by Friesen as a logical solution to earn back revenue lost on fuel taxes.

Nebraska isn't pushing a novel idea here; numerous other states have been looking at possible ways to claw back money EV drivers have been planning on saving. According to the National Conference of State Legislatures, more than 30 states charge higher registration fees for EV vehicles, and 14 do the same with plug-in hybrid vehicles. Nebraska's proposed registration fee increase will see EV owners pay $150 by 2027, up from the current rate of $75. Even at double the cost, Nebraska is still a long way off from being the most expensive state. In Washington, you are expected to fork over $225 in additional fees to keep your EV in the law's good books.

The reasoning for the increase is dead simple: the more people who drive EVs, the less money the state gets on fuel taxes, which leads to budget shortfalls on important areas like road maintenance. According to The Drive, half of Nebraska's Highway Trust Fund revenue comes from fuel taxes. The current tax is set at 24.8 cents per gallon, which brings in around $284 million each year. Implementing the bill right now won't see a significant increase in the state's tax coffers, as there are only 2,527 full plug-in vehicles registered in the state, which has over 1.9 million registered vehicles. The state has only 169 charging stations. ICE owners should face increasing tax to reduce polluting vehicles, and not punish early adopters of EV tech.