Ohio introduces bill to reduce EV tax

Ohio is one of several US states that impose taxes on EVs that are far higher than the amount paid in gas taxes by a typical driver of a legacy vehicle. A recently introduced bill aims to change that.

Ohio’s current EV tax, which was enacted in 2019, imposes an annual fee of $200 on electric drivers. The new bill (HB546) would reduce the fee to $100 for EVs and $50 for PHEVs.

According to a recent analysis from Consumer Reports, Ohio’s existing EV tax is considerably higher than the annual gas tax for a typical new gas-burning car.

Ohio’s punitive fee is particularly ironic considering that the state is counting on a growing EV industry to replace jobs lost when a major GM plant in Lordstown closed in 2019.

“The tax is terrible policy in a state like Ohio, which is looking to EV manufacturing and associated battery and auto supply industries to create the skilled, middle-class jobs that our state sorely needs,” wrote the NRDC’s Mark Nabong. “Our focus ought to be on how we can help Ohio startups like Workhorse Trucks and Lordstown Motors become the next Tesla and to ensure that our state is the kind of place that companies like GM, BASF and Dana want to grow their EV businesses.”

Ohio residents can find contact information for their state Representatives on the Ohio Legislature’s web site.

Source: National Resources Defense Council