Pennsylvania Act 2024-85 — VEHICLE CODE (75 PA.C.S.) - IMPOSTION OF TAX, EXEMPTIONS AND DEDUCTIONS, ELECTRIC VEHICLE ROAD USER CHARGE AND PENALTY

Act text

Session of 2024

No. 2024-85

SB 656

AN ACT

Amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in general provisions, further providing for definitions; in liquid fuels and fuels tax, further providing for definitions and for imposition of tax, exemptions and deductions and providing for electric vehicle road user charge; and imposing a penalty.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1. The definitions of "electric vehicle" and "hybrid electric vehicle" in section 102 of Title 75 of the Pennsylvania Consolidated Statutes are amended and the section is amended by adding definitions to read:

§ 102. Definitions.

Subject to additional definitions contained in subsequent provisions of this title which are applicable to specific provisions of this title, the following words and phrases when used in this title shall have, unless the context clearly indicates otherwise, the meanings given to them in this section:

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"Battery." An energy power storage system that stores electrical energy within the system's constituent parts.

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"Electric vehicle." [A motor vehicle which operates solely by use of a battery or battery pack and which meets the applicable Federal motor vehicle safety standards. The term includes a motor vehicle which is powered mainly through the use of an electric battery or battery pack but which uses a flywheel that stores energy produced by the electric motor or through regenerative braking to assist in operation of the motor vehicle.] A motor vehicle that delivers power to its drive wheel or wheels solely by use of a battery-powered electric motor.

"Electric vehicle charging station." A facility or equipment designed to charge, by connective or inductive means, a battery within an electric vehicle or plug-in hybrid electric vehicle by permitting the transfer of electricity to a battery or other storage device in an electric vehicle.

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"Hybrid electric vehicle." [An electric vehicle which allows power to be delivered to the drive wheels solely by a battery-powered electric motor but which also incorporates the use of a combustion engine to provide power to the battery and which meets the applicable Federal motor vehicle safety standards. The primary source of power for the motor must be the electric battery or battery pack and not the combustion engine.] As follows:

(1) A motor vehicle using a combustion engine or regenerative braking to charge a battery to deliver power to:

(i) the drive wheel or wheels; or

(ii) vehicle systems other than propulsion.

(2) The term does not include motor vehicles capable of receiving energy from an external source such as an outlet or charging station.

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"Plug-in hybrid electric vehicle." A motor vehicle that can deliver power to the drive wheels solely by a battery-powered electric motor but which also incorporates the use of another fuel to power a combustion engine. The battery of the vehicle must be capable of receiving energy from an external source, such as an outlet or charging station.

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Section 2. The definitions of "alternative fuel dealer-user" and "person" in section 9002 of Title 75 are amended and the section is amended by adding a definition to read:

§ 9002. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

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"Alternative fuel dealer-user." As follows:

(1) Any person who delivers or places alternative fuels into the fuel supply tank or other device of a vehicle for use on the public highways.

(2) The term includes a person that provides an electric vehicle charging station for public use, regardless of whether compensation is received for the public use.

(3) The term does not include a person that provides an electric vehicle charging station used exclusively to charge:

(i) Electric vehicles or plug-in hybrid electric vehicles at a private residence.

(ii) Electric vehicles or plug-in hybrid electric vehicles owned by tenants, residents or nonlocal visitors of a common interest development or other group of private residences within a geographic location.

(4) The term does not include an owner or registrant of an electric vehicle or plug-in hybrid electric vehicle subject to an electric vehicle road user charge under section 9024 (relating to electric vehicle road user charge).

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"Exempt entity." A person exempt under section 9004(e) (relating to imposition of tax, exemptions and deductions) from reporting and paying a tax on liquid fuels, fuels or alternative fuels imposed by this chapter.

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"Person." Every natural person, firm, copartnership, association or corporation. Whenever used in any provision prescribing and imposing a fine or imprisonment, the [term as applied to associations means the partners or members and as applied to corporations means the officers thereof.] terms firm, copartnership, association and corporation shall be subject to 18 Pa.C.S. § 307 (relating to liability of organizations and certain related persons). With respect only to the sale of alternative fuels, a Commonwealth agency and a political subdivision may be considered a " person. "

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Section 3. Section 9004(e)(4) of Title 75 is amended and subsection (d) is amended by adding a paragraph to read:

§ 9004. Imposition of tax, exemptions and deductions.

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(d) Alternative fuels tax.--

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(3) Nothing contained in this chapter shall be construed to:

(i) Affect the duty of an alternative fuel dealer-user to report and pay to the department the tax under this subsection for electricity delivered through an electric vehicle charging station provided by the alternative fuel dealer-user to the owner or registrant of an electric vehicle or plug-in hybrid electric vehicle that is subject to the electric vehicle road user charge.

(ii) Prohibit the alternative fuel dealer-user from passing onto the owner or registrant of an electric vehicle or plug-in hybrid electric vehicle that is subject to the electric vehicle road user charge any costs associated with the reporting and payment of the tax under this subsection.

(e) Exceptions.--The tax imposed under subsections (b), (c) and (d) shall not apply to liquid fuels, fuels or alternative fuels:

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(4) Delivered to this Commonwealth, a political subdivision, a volunteer fire company, a volunteer ambulance service, a volunteer rescue squad, a second class county port authority , an electric cooperative corporation as defined under 15 Pa.C.S. § 7302(a) (relating to application of chapter) or a nonpublic school not operated for profit on presentation of evidence satisfactory to the department.

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Section 4. Title 75 is amended by adding a section to read:

§ 9024. Electric vehicle road user charge.

(a) Imposition.--Owners or registrants of electric vehicles and plug-in hybrid electric vehicles with a gross vehicle weight rating of not more than 14,000 pounds shall pay an annual electric vehicle road user charge as provided under subsection (c.1), which shall be concurrent with paying the vehicle registration fee imposed under Chapter 13 (relating to registration of vehicles).

(b) New or temporary vehicle registration.--New or temporary registration for an electric vehicle or plug-in hybrid electric vehicle issued on or after the effective date of this subsection shall be subject to the electric vehicle road user charge imposed under subsection (a). The Department of Transportation shall send a form to the owner or registrant for the payment of the electric vehicle road user charge for the initial registration consistent with Chapter 13.

(c) Renewal of vehicle registration.--At least 60 days prior to the expiration of registration for an electric vehicle or plug-in hybrid electric vehicle under subsection (a), the Department of Transportation shall send to the owner or registrant a form for the payment of the electric vehicle road user charge for the renewal of registration consistent with Chapter 13.

(c.1) Computation of electric vehicle road user charge.--

(1) The electric vehicle road user charge for an electric vehicle shall be as follows:

(i) $200 upon initial registration in 2025 or upon renewal of registration submitted to the Department of Transportation for a registration that expires in 2025.

(ii) $250 upon initial registration in 2026 or upon renewal of registration submitted to the Department of Transportation for a registration that expires in 2026.

(iii) The amount under paragraph (2) upon initial registration in 2027 and each year thereafter or upon renewal of registration submitted to the Department of Transportation for a registration that expires in 2027 and each year thereafter.

(2) On January 1, 2027, and each January 1 thereafter, the electric vehicle road user charge shall be fixed annually by the Department of Transportation based upon the electric vehicle road user charge in the prior year as adjusted to reflect the change in the Consumer Price Index for All Urban Consumers (CPI-U) for the United States for all items as published by the United States Department of Labor, Bureau of Labor Statistics, for the previous 12-month period. The electric vehicle road user charge as adjusted shall be rounded to the nearest multiple of $1. The Department of Transportation shall transmit notice of the new electric vehicle road user charge to the Legislative Reference Bureau by the preceding December 1 for publication in the next available issue of the Pennsylvania Bulletin no later than the preceding December 15.

(3) The electric vehicle road user charge for a plug-in hybrid electric vehicle shall be 25% of the electric vehicle road user charge for an electric vehicle under paragraph (1) and shall be rounded to the nearest multiple of $1 as determined by the Department of Transportation.

(4) If an owner or registrant of an electric vehicle or plug-in hybrid electric vehicle elects to pay an annual registration fee for a two-year registration period as provided under section 1307(g) (relating to period of registration), the electric vehicle road user charge shall be two times the amount required by this section as determined by the Department of Transportation.

(d) Enrollment.--

(1) The Department of Transportation shall permit owners or registrants of electric vehicles and plug-in hybrid electric vehicles under subsection (a) to pay the electric vehicle road user charge as follows:

(i) Enroll in a flat charge of the amount required under subsection (c.1) per year to the Department of Transportation provided by credit or debit card, check or money order or any other payment method approved by the Department of Transportation. Owners or registrants who elect this option may enroll in a paper form prescribed and furnished by the Department of Transportation instead of electronically.

(ii) Enroll in a payment plan of the amount required under subsection (c.1) divided into monthly payments during the registration period to the Department of Transportation by credit or debit card, check or money order or any other payment method approved by the Department of Transportation. Owners or registrants who elect this option may enroll in a paper form prescribed and furnished by the Department of Transportation instead of electronically.

(2) The charges under paragraph (1) shall not include a Federal tax, fee, levy or charge, and an owner or registrant of an electric vehicle or plug-in hybrid electric vehicle shall be responsible for paying any tax, fee, levy or charge imposed by the Congress of the United States after the effective date of this paragraph.

(e) Concurrent registration.--The registration of electric vehicles and plug-in hybrid electric vehicles shall not be valid unless the owner or registrant enrolls in a payment option under subsection (d).

(f) Penalty.--Failure to pay the electric vehicle road user charge within 30 days of the enrollment date established by the Department of Transportation shall result in a prohibition on renewal of the electric vehicle's or plug-in hybrid electric vehicle's registration. The Department of Transportation may not prohibit the renewal of a vehicle registration under subsection (d)(1)(ii) if the electric vehicle's or plug-in hybrid electric vehicle's owner or registrant is enrolled in a payment plan and makes timely payments according to the schedule established by the Department of Transportation.

(g) Liability for unpaid tax amounts.--The owner or registrant of a vehicle subject to the electric vehicle road user charge under this section shall not be liable for any unpaid tax amount owed to the department prior to the effective date of this section for the tax imposed under section 9004(d) (relating to imposition of tax, exemptions and deductions).

(h) Liens, penalties and interest prohibited.--The department may not impose liens, penalties or interest on the owner or registrant of a vehicle subject to the electric vehicle road user charge under this section for any unpaid tax amount owed to the department prior to the effective date of this subsection for the tax imposed under section 9004(d).

(i) Criminal penalties and fines prohibited.--The owner of a vehicle subject to the electric vehicle road user charge under this section shall not be subject to any criminal penalties or fines under this chapter for any unpaid tax amounts owed to the department prior to the effective date of this section for the tax imposed under section 9004(d).

(j) Charges for highway maintenance and construction.--The electric vehicle road user charge collected by the Department of Transportation under this section shall be transmitted to the State Treasurer for deposit into the Motor License Fund in accordance with the allocations under section 9511 (relating to allocation of proceeds). For purposes of aligning the electric vehicle road user charge with the allocations of proceeds, the electric vehicle road user charge must be allocated in accordance with the oil company franchise tax for highway maintenance and construction under section 9502 (relating to imposition of tax).

(k) Exceptions.--The following electric vehicles and plug-in hybrid electric vehicles shall not be required to pay the electric vehicle road user charge under this section:

(1) A golf cart.

(2) A neighborhood electric vehicle.

(3) A motorcycle or other vehicle with less than four wheels.

(4) A vehicle that is not required to be registered with the Department of Transportation under this title.

(5) A vehicle registered to a person exempt under section 9004(e) from reporting and paying a tax on liquid fuels, fuels or alternative fuels.

(6) Qualified motor vehicles as defined under section 2101.1 (relating to definitions).

(7) A motor vehicle with a model year of 1990 or older.

(l) Exempt entities.--

(1) If a vehicle registered to an exempt entity is used for a nonexempt purpose during the registration year, the exempt entity shall pay an administrative penalty of $500 to the department. An exempt entity that improperly uses a vehicle for nonexempt purposes is not eligible to claim a refund for the vehicle under the provisions of section 9017 (relating to refunds).

(2) An exempt entity applying for a refund under subsection (m) shall maintain records of vehicle usage certifying that an individual trip made by the vehicle was for a qualified exempt use. Individual trip logs, odometer readings and driver signatures shall be among the records required to substantiate exempt use.

(3) The department may inspect the substantiating records for an exempt entity at any time.

(4) The exempt entity shall cooperate with an agent of the department in an inspection under paragraph (3).

(5) An exempt entity that refuses to permit the department or an agent appointed by the department in writing to examine the books, records, papers or other equipment associated with the operation of an electric vehicle or plug-in hybrid electric vehicle as permitted under paragraph (3) commits a summary offense and shall pay a fine of $500 for each electric vehicle and plug-in hybrid electric vehicle owned or operated by the exempt entity.

(m) Refunds.--A person may be entitled to a refund of the electric vehicle road user charge paid for a vehicle that would otherwise have been exempt under section 9004. A person entitled to a refund of the electric vehicle road use fee shall apply for an annual refund in a manner similar to the refund process used for liquid fuels, fuels and alternative fuels under section 9017.

(n) Rental vehicles.--The electric vehicle road user charge under this section shall be considered a rental vehicle licensing and title fee imposed by the Commonwealth under this title for the purposes of section 1603-A of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

(o) Regulations.--The Department of Transportation, in consultation with the department, may promulgate regulations to implement this section.

(p) Temporary regulations.--In order to facilitate the prompt implementation of this section, regulations promulgated by the Department of Transportation in consultation with the department under this section during the two years following the effective date of this subsection shall be deemed temporary regulations, which shall expire no later than three years following the effective date of this subsection or upon the prompt promulgation of final regulations. The temporary regulations may not be subject to:

(1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law.

(2) Section 204(b) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act.

(3) The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

Section 5. This act shall take effect as follows:

(1) The addition of 75 Pa.C.S. § 9024(d)(1)(ii) shall take effect in 24 months.

(2) This section shall take effect immediately.

(3) The remainder of this act shall take effect January 1, 2025.

APPROVED--The 17th day of July, A.D. 2024.

JOSH SHAPIRO