New state law will affect owners of electric vehicles

The Iowa Department of Transportation estimates there are about 800 battery-driven electric vehicles and about 1,900 plug-in hybrid electric vehicles owned by state residents.

That's not a lot of impact, but DOT officials are worried that future increases in the ownership of EVs would lead to a shortfall in the state road fund.  So the DOT recommended to the State Legislature that a 26 2.6 cent per kilowatt hour excise tax be charged in order to collect road funds.  The excise tax would not apply to home charging, which accounts for 80 to 90 percent of passenger electric vehicle charging.  It would also implement a $130 annual registration fee for battery electric vehicles, a $65 annual fee for plug-in hybrid electric vehicles, and a $9 annual fee for electric motorcycles.  Governor Kim Reynolds has now signed House File 767 into law.

Iowa Environmental Council staffer Kerri Johannsen says EV owners "totally agree…they should be paying their fair share."  But Johannsen, on a trip to Decorah this week, said the new law could have the impact of slowing down sales of EVs.  Johannsen is also concerned about the impact the law will have on public recharging stations.  She says the new law will charge hotels and other business offering a recharging station fees "as if they were a gas station."  She's concerned that will dissuade many people from buying electric vehicles.  She says a fairer system would be to charge on the basis of mileage traveled by EV cars.