LINCOLN, Neb. (AP) — Motorists who register an electric car in Nebraska could end up paying higher fees under a bill presented to a legislative committee Tuesday as a way to compensate for lost gas tax revenue.
Supporters said the measure would help the state and local governments preserve Nebraska’s roads as electric vehicles grow increasingly popular.
The bill would gradually raise the registration fee for alternative-fuel vehicles from the current $75 to $125 by 2024. The extra revenue would go into the state Highway Trust Fund, which is used to maintain state, city and county roads.
The increase “is a fair way for everyone to fund the Department of Transportation and the roads we all drive on,” said Sen. Bruce Bostelman, of Brainard, who sponsored the bill. “As long as we continue to drive on our roads, we must continue to pay for the maintenance and upkeep of those roads going forward.”
Bostelman said the proposed increase was based on the average $150 in gas taxes that gas-vehicle drivers pay in Nebraska each year.
He said the increase would bring Nebraska into alignment with the rates many states already charge. Bostelman said 19 states, including Nebraska, charge an annual fee for alternative-fuel vehicles, and most of those charge between $100 and $150.
The bill wouldn’t apply to hybrid vehicles or those that run on diesel or compressed natural gas.
Nebraska will register an estimated 1,250 alternative fuel vehicles in 2020 and another 1,500 by 2021, according to the state Department of Motor Vehicles. The number of registered alternative fuel vehicles in Nebraska surged last year, from 405 in 2017 to 772 in 2018.
“Should alternative fuel vehicle use increase, the tax revenue generated from the motor vehicle fuel tax will decrease,” Bostelman said.
Nebraska has more than 100,000 miles of roads and 20,000 bridges, mostly owned by counties and cities. Roughly 10,000 miles of road and 3,500 bridges belong to the state.
Michael O’Hara, a lobbyist for the Sierra Club’s Nebraska chapter, said his group supports the increase “and if anything, it’s too low.”
Loy Todd, president of the Nebraska New Car and Truck Dealers Association, said the bill was an important way to capture state revenue as consumers gradually shift to electric vehicles.
“If we want good roads in the state, we’ve got to pay for them. No question about it,” he said.
No one testified against the bill. Members of the Transportation and Telecommunications Committee took no immediate action.