Does NC have a vehicle tax for electric vehicles?

With North Carolina’s recent increase in gas taxes, some are wondering how the state will recoup tax dollars lost on electric vehicles.

CHARLOTTE, NC – A recent Bloomberg study shows that by 2040, 58% of vehicle sales will come from electric vehicles.

With North Carolina’s recent increase in gas taxes, which help fund road construction and maintenance, some are wondering how the state is going to recoup taxpayers’ money that’s being lost because electric vehicles don’t run on gasoline.

Viewer Duane K emailed WCNC and asked that state vehicle taxes increased by two cents starting Jan. 1 with the push for electric cars. Can the state get back the road tax for electric vehicles?

WCNC brought up this question at the NCDOT conference in Raleigh. Here, NCDOT executives and some legislators and corporations met to discuss problems and solutions for North Carolina’s roads. Electric vehicles are a big topic.


“Businesses are demanding their fleets be electric, more people are buying electric vehicles,” Gov. Cooper said.

Governor Cooper said it himself: North Carolina is in the fast lane when it comes to electric vehicle purchases. The latest NCDOT statistics for October show 51,000 registered electric or hybrid vehicles on North Carolina’s roads. Hopkins said lawmakers are currently working on ways to make up for lost gas tax revenue because EV users never pay a dime of it.

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β€œIt’s something our leaders in the Legislature have been talking about as more people start driving electric vehicles. A lot of our funding comes from the gas tax, so you have a loss there,” Hopkins said.

NCDOT notifies WCNC that effective immediately, there will be a $140 annual registration fee for electric vehicles. This is intended to help replace the revenue foregone normally generated by the gas tax. However, as more people buy electric vehicles, Hopkins says the state is looking at more ways to evenly share the load.

“It would maybe be something like a user tax, but that’s still being worked through,” Hopkins said.

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