The Alberta government plans to impose a $200 annual tax on electric vehicle owners starting next year. This is news that will alarm many.
The new measure was introduced in the province's latest budget, presented on February 29. To justify their decision, officials argue that the extra weight of electric vehicles will accelerate wear and tear on roads, and that those with gasoline engines are already subject to fuel taxes.
"While fuel tax revenues are not earmarked to fund provincial road construction and maintenance, there are equity concerns with drivers of other vehicles and longer-term challenges associated with declining fuel tax revenues," the government's 2024-25 budget states.
Alberta claims the $200 amount represents the annual fuel tax paid by drivers of gasoline and diesel vehicles. Note that owners of hybrid vehicles will not have to pay an additional tax.
The new fees will be added to the registration fees for existing vehicles.
The Automotive News Canada website, which reported the news, explains that the measure is expected to bring in one million for the province's next fiscal year. It is estimated that this amount will increase to 5 million in 2025-2026, and then to 8 million for the following period. By comparison, provincial fuel taxes will raise 1.4, 1.44 and 1.46 billion over the next three years.
The Alberta government says it will monitor the situation closely over the next few years to protect its tax revenues. More details will be released in the fall about the new tax, which is scheduled to take effect on January 1, 2025.
Will other jurisdictions follow?