State lawmakers have proposed significant increases for registration fees for electric and plug-in hybrid vehicles, a move intended to offset declining gasoline tax revenues as more drivers shift to alternative fuel cars.
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State lawmakers have proposed significant increases for registration fees for electric and plug-in hybrid vehicles, a move intended to offset declining gasoline tax revenues as more drivers shift to alternative fuel cars.
House Bill 5568, introduced by the legislature’s Finance, Revenue and Bonding Committee, would raise the cost of registering battery electric vehicles, fuel cell vehicles and range-extended electric vehicles in the state to $345 every three years. For plug-in hybrid vehicles, the fee would be $233 every three years.
The standard registration fee for most gas-powered passenger vehicles would remain $120 every three years.
If approved, the increases would take effect Oct. 1, 2026.
The bill does not yet include a fiscal note, but the higher fees would likely generate additional revenue for the state as Connecticut grapples with long-term transportation funding challenges.
Because electric vehicles do not use gasoline and hybrids use a reduced amount, their owners contribute little or nothing to the state’s fuel tax, a primary source of transportation revenue.
Lawmakers in other states have increasingly looked to registration fees as a way to ensure electric vehicle owners contribute to maintaining roads and infrastructure.
According to the Tax Foundation, 40 states impose a higher annual vehicle registration fee for EVs and some hybrid vehicles to help offset lost gas tax revenue
Under the state’s bill, drivers aged 65 and older would have the option to renew registrations annually instead of every three years, with fees prorated.
The bill also closes a potential loophole involving special license plates. While vehicles with certain specialty plates typically pay the standard $120 registration fee, the legislation specifies that electric and plug-in hybrid vehicles would not qualify for that lower rate.
If approved, fees paid by owners of electric vehicles would be nearly three times the standard registration fee, while plug-in hybrid owners would face roughly double the current cost.
The proposal comes as Connecticut continues to encourage adoption of zero-emission vehicles as part of its climate goals, raising questions about how to balance environmental incentives with transportation funding needs.
