HARRISBURG – PA’s Alternative Fuels Tax on electric vehicle owners will be eliminated and replaced with a flat fee under a bill signed into law by the governor. Senate Bill 656, now Act 85, reduces the burden on electric vehicle owners, simplifies the process, and eliminates the need for monthly reports. Currently, owners of EVs are required to file monthly statements with the PA Department of Revenue and remit the alternative fuel tax on how much electricity their vehicle uses. However, most EV owners don’t do this, or are inconsistent at doing so, due to the cumbersome process or simply being unaware. The annual flat fee would be $200 in 2025, $250 in 2026, and then tied to a Consumer Price Index increase thereafter. Like PA’s gas tax, the revenue from the flat EV fee will be deposited into the Motor License Fund for highway maintenance and construction.
