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Government of Alberta hikes cost of electric vehicle registration

EV advocates call $200 registration tax a 'political stunt'
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Registering electric vehicles is going to cost Albertans an extra $200.

Owners of electric vehicles in St. Albert will now pay more to register their vehicles as the Government of Alberta puts its $200 EV registration tax into effect on Thursday.

Harry Wagensveld, a St. Albert resident and Great West Media employee has owned a Tesla Model Y since March 2023. He doesn't think the tax is very fair.

"I don't think it's equitable," Wagensveld said. "Somebody who drives a lot will be paying too little and somebody who drives very little will be paying too much for it."

According to a government news release, the registration tax offsets the fact EV drivers do not pay a fuel tax. 

"Starting on Feb. 13, Albertans will be charged a $200 tax when they register their electric vehicles. This amount is in line with what drivers of a typical internal combustion engine vehicle would be expected to pay each year in fuel tax," the release said.

The tax will be collected by registry agents and online via MyAlberta eService.

"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 Nate Horner said in the news release.

"Owners of electric vehicles use the same roads as other Albertan drivers. It's only fair they contribute to public services including those that ensure the continued safety and upkeep of Alberta's roads," Service Alberta and Red Tape Reduction Minister Dale Nally.

However, the Electric Vehicle Association of Alberta and some EV owners find the proposal unfair and not equitable to their gasoline counterparts.

"We're a little bemused that they're actually putting this through, given it's the only jurisdiction in Canada that's actually doing this other than Saskatchewan," association director Andrew Bell said. 

Bell said Alberta has one of the lowest electric vehicle uptakes in Canada, and is significantly behind British Columbia, which has a much more robust charging system. He said the government's claim the tax will go to road maintenance is a small part of the story.

"Only a small percentage of that is actually going to road maintenance for provincial roads," he said, adding road maintenance is partially paid for by various forms of income taxes. "Electric vehicle owners, we pay municipal taxes and income taxes like everybody else."

"We largely see this as a political stunt to appease their base," he said.

He also said he doesn't believe that the extra weight of electric vehicles is adding more strain on the roads.

"The UCP is trying to claim that the weight of two adults in my electric vehicle is causing extra wear and tear, compared to what freight trucks are doing to our roads? We have a hard time swallowing that one," he said.

Not all electric vehicle owners are opposed to the tax, though. St. Albert resident Jerry Veldhuis has owned a 2020 Hyundai Kona Electric for around four years, and he'll pay the tax happily, as long as it goes to road maintenance like the province is saying. 

"I try not to grumble too much about things that I can't control. A tax is a tax, and when I renew my registration, I'll pay that $200," Veldhuis said. "All I can do is cross my fingers and hope that it goes to the right place."

He also thinks the tax is mostly a political move.

"I don't know why they're in the midst of adding taxes, although they got rid of other renewable programs, so it doesn't really surprise me that they want to put some tax on EVs to please their base, I guess," he said.

He also feels this is another barrier for potential electric vehicle owners.

Service Alberta and Red Tape Reduction press secretary Brandon Aboultaif responded to the Gazette's inquiry about the tax with a statement:

"The rate of $200 per year for the electric vehicle tax was calculated based on the average amount a driver of a gas or diesel vehicle would be expected to pay in provincial fuel tax throughout the year. Revenue from the tax will be used to fund programs, services and infrastructure that Albertans rely on every day, including provincial roadways. 
 
Alberta is not alone in doing so in Canada. The province of Saskatchewan and almost all U.S. jurisdictions impose a tax or fee on electric vehicles."

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