Alberta Budget: Electric Vehicle Tax To Be Introduced

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Concerns around fairness are in part fuelling a new tax that people who drive electric vehicles need to pay as early as next year.

In the 2024 Alberta provincial budget, the government introduced a $200 annual tax on electric vehicles. The targeted effective date is Jan. 1, 2025.

This tax will be paid when owners register their vehicles and will be in addition to the existing registration fee, reads the budget.

“EVs tend to be heavier than similar internal combustion vehicles and cause more wear and tear on provincial roadways while their owners pay no fuel tax,” it added.

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The budget notes that, while fuel tax revenue is not dedicated to funding construction and maintenance of provincial roads, “there are nevertheless fairness concerns with drivers of other vehicles and longer-term challenges associated with declining fuel tax revenue.”

More details on the tax will come through when legislation is introduced in fall 2024.

More Low Carbon Solutions: Hydrogen support

There is no funding estimated in this year’s budget capital plan for the Clean Hydrogen Centre of Excellence. It received a budget of $5 million in 2023-24 with a forecast of $9 million.

In response to a question about this change to funding, a spokesperson for the province noted that in 2022, Alberta committed to providing $40 million over four years in operating funding. This includes $10 million that will be provided in 2024-25 under TIER.

“Under Alberta’s government, the Hydrogen Centre of Excellence has awarded $20 million to 21 projects that have a total value of over $129 million,” they added. “A further $25 million will be awarded in another competition via the Technology Innovation and Emissions Reduction fund.”

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