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Alberta’s new electric vehicle tax takes effect next week

Western Standard News Services

Alberta’s new $200 annual tax on electric vehicles (EVs) will take effect on Feb. 13, requiring owners to pay the fee when registering or renewing their vehicle registrations.

The tax is intended to ensure EV owners contribute to road maintenance and other public services, similar to drivers of gasoline-powered vehicles who pay fuel taxes.

“This is a fair way for all drivers to contribute to public services and to help keep roads and highways safe and smooth,” said Nate Horner, Alberta’s Minister of Finance.

“Alberta is joining a growing number of places across North America introducing this tax so that drivers of both electric and gas vehicles are treated the same.”

The fee will be collected by registry agents and online through MyAlberta eService. Exemptions apply to electric motorcycles, electric off-highway vehicles such as ATVs, and hybrid vehicles.

Dale Nally, Minister of Service Alberta and Red Tape Reduction, said the tax ensures EV owners pay their share for Alberta’s road system.

“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.”

The tax was introduced in Budget 2024 and passed last fall as part of the Financial Statutes Amendment Act. The legislation also includes provisions for refunds and exemptions for the federal government, diplomats, and First Nations individuals living on reserve.