Michigan Has Increased the Costs of Owning an EV | Carscoops

      Going green will be more expensive in Michigan, while vehicles powered by internal combustion engines remain unaffected.

      The registration cost for electric vehicles (EVs) in Michigan is rising by $100, making the state tied for having the highest EV fee in the nation. EV owners were already facing higher costs compared to those driving ICE cars.

      With tariffs, inflation, and the removal of the clean vehicle tax credit, going electric is becoming increasingly costly. Michigan is adding more fees to support road funding, as the substantial tax on marijuana wasn't sufficient.

      The situation is quite complex, but MLive reports that Michigan has decided to eliminate the sales tax on gasoline while introducing a higher fuel tax. This increase mirrors the tax that was removed, effectively negating each other. This indirect approach will, however, lead to more funds being allocated to the repair of Michigan roads.

      According to sources, state law mandates an increase of $5 to the EV registration fee and a $2.50 increase for plug-in hybrid vehicle registration for every 1-cent rise in the state’s gas tax. As a result, while traditional gas vehicle drivers remain unaffected, owners of eco-friendly vehicles face steeper fees.

      As a result, registering an EV will now cost Michigan drivers an additional $100 each year, bringing the total fee to $260, in addition to standard registration costs. Similarly, the registration fee for electric trucks is expected to rise to $360.

      Sophia Schuster, a policy principal at the Michigan Energy Innovation Business Council, stated that by imposing the highest EV fees in the country, Michigan is discouraging adoption and signaling to automakers that the state is not committed to leading in transportation electrification.

      The organization also noted that prior to these fee increases, Michigan EV drivers were already paying about $20 more in state taxes than those with ICE vehicles. Additionally, they highlighted that EVs are typically driven 4,500 miles (7,242 km) less per year than ICE vehicles, meaning their owners are “paying more for roads they use less.”

      There may be relief on the horizon with a proposal to significantly reduce fees for plug-in hybrids and EVs, but only time will reveal if these changes will be implemented.