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Montana governor signs law to create annual electric vehicle fees

A Tesla EV charging station in March 2023.
Kayla Desroches
/
Yellowstone Public Radio
A Tesla EV charging station in March 2023.

Montana is hammering out an electric vehicle fee structure that supports highway repair and maintenance in place of traditional fuel tax.

On April 19, Montana Governor Greg Gianforte signed a bill into law that establishes an annual charge for resident electric vehicles based on weight.

Sponsor Republican Representative Denley Loge of St. Regis spoke at a committee hearing in March: “The revenue as I say goes into the gas tax fund, and so we get some road-use fees paid out of the electric vehicles.”

Gov. Gianforte vetoed a similar bill in 2021 after determining the fees were too high. A spokesperson with the governor’s office says the legislation this year adopts competitive fees that are in line with other states.

According to a bill fiscal note, as of January 2022 there were nearly 3,000 EVs in Montana with the majority assumed to weigh less than 6,000 pounds.

The owner of a fully electric vehicle less than 6,000 pounds, like a Tesla Model Y, would pay an annual fee of $130 in addition to regular registration. The owner of a plug-in hybrid electric vehicle in the same weight category would pay $70.

The law goes into effect July 1.

The legislature is also considering a bill to establish a tax on electric vehicle charging stations to collect revenue from out-of-state travelers. House Bill 55 passed out of a senate committee Tuesday and heads next to the Senate floor.

Kayla writes about energy policy, the oil and gas industry and new electricity developments.