Vermont’s New EV Tax: Where’s the Equity?

Montpelier promised a more equitable approach, but many Vermont electric and hybrid vehicle owners received an unwelcome surprise this year: a new tax, effective January 1st. It’s $89 for fully electric vehicles and $44.50 for hybrids, in addition to the regular vehicle registration fee. And it comes on top of already rising property taxes – with more increases expected.

This “infrastructure fee,” as it’s been called, appeared seemingly out of nowhere. the Department of Motor Vehicles created it in 2024 without any public input or prospect for comment. It’s unusual; most agencies announce new fees and allow for feedback beforehand. Even Green Mountain Power needs Public Utility Commission approval – and public comment – before raising rates.

But it truly seems the state can create a tax, give it a new name, and impose it on Vermonters without warning.

Governor Scott quietly signed this EV tax into law late in 2024, without any public declaration. It wasn’t until EV owners began receiving notices in January that the anger and confusion began. Local news outlets were quickly contacted.

One local station picked up the story, and it sparked a debate. Some argue the fee is necessary to fund road maintenance, as EV owners don’t pay gas taxes. But many EV owners feel betrayed. They purchased thes vehicles believing they were contributing to a greener future, and now they’re facing an unexpected financial burden.

It’s not just about the money, tho. It’s about clarity and fairness. why wasn’t there a public discussion? Why wasn’t this fee debated in the legislature? It appears the state prioritized expediency over engagement.

The state argues this fee will help maintain roads. However, it’s unclear how the funds will be allocated. One might suggest a more transparent accounting of these funds would ease concerns. Vermonters deserve to know exactly where their money is going.

This situation raises a crucial question: is Vermont truly committed to promoting electric vehicles, or is it simply shifting the tax burden onto a specific group of drivers? It’s a question that deserves a clear and honest answer.