Alberta’s $200 electric vehicle tax to start in 1 week

A Chevrolet Bolt electric vehicle (EV) at a dealership in Colma, California, US, on Friday, Jan. 26, 2024. General Motors Co. is expected to release earnings figures on January 30. Photographer: David Paul Morris/Bloomberg (David Paul Morris/Bloomberg)

Alberta will start collecting a $200 tax on electric vehicles next Thursday.

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Albertans will need to pay the annual fee when they register their electric vehicle.

The government introduced the tax as part of the 2024 provincial budget as a way to make up for the fuel tax electric vehicle owners are no longer paying.

The government says $200 is “in line” with what drivers of vehicles with combustion engines would pay in fuel tax.

“This is a fair way for all drivers to contribute to public services, and to help keep roads and highways safe and smooth,” Finance Minister and Treasury Board president Nate Horner said in a statement on Thursday.

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The Electric Vehicle Association of Alberta has accused the Alberta government of being motivated by ideology. It agrees there is a revenue shortfall, but says the fee is punitive to low-mileage drivers and owners of small vehicles that weigh less than gas and diesel vehicles, and is additionally poorly timed given other jurisdictions are incentivizing electric vehicles.

Hybrid vehicles are exempt from the tax.