Alberta EV owners won’t face new tax January 1

Media misinformation has caused a buzz in the electric vehicle owners community, but it appears EV drivers still have some time.

In the Alberta budget announced in the spring, Finance Minister Nate Horner proposed a $200 tax when registering an electric vehicle, on top of the standard registration fees.

That bill, Bill 32 has not been proclaimed into law. However, it was reported by various media outlets that the $200 tax would come into effect on January 1, 2025, causing many EV owners to rush to the registry to try and save money by registering their vehicles early, and for two years instead of one.

That information is incorrect – Bill 32 has indeed passed legislation but has not yet been proclaimed into law and will not come into effect on January 1st.

When the tax was proposed, Minister Horner said the $200 fee was to offset the fact that electric vehicle owners don’t pay fuel tax, which is used to maintain provincial highways.

Additionally, electric vehicles cause more wear and tear on the roads due to the weight of their batteries.

Alberta’s electric vehicle drivers are not thrilled with the extra cost.

In a statement to CityNews, the Electrical Vehicle Association of Alberta’s President William York wrote: “We also take issue with the flat $200 fee and the reason given that evs are heavier and therefore cause more road damage. The flat fee is punitive to small ev drivers or low mileage. There are many, if not the majority, evs that weigh less than gas vehicles.”

The tax is expected to come into effect sometime in early 2025.

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