Electric vehicle (EV) owners in Saskatchewan will soon pay twice as much to register their vehicles, jumping from $150 to $300 per year.
The new fee is set to begin June 1 and is intended to help cover road maintenance, according to the province.
In a statement, the Saskatchewan government said EVs are growing in popularity, yet their drivers do not pay fuel tax, which is typically used to maintain highways.
Officials said that the new $300 annual Road Use Charge forces owners of EVs to contribute their fair share of road maintenance costs compared with those who drive gasoline-powered vehicles.
Saskatchewan introduced the original $150 annual fee in its 2021-2022 budget, calling itself the first province to place such a charge.
By raising it to $300 in its 2025-2026 budget, the government says the cost better reflects damage caused by all vehicles, including EVs.
The province maintains that EVs still contribute to wear and tear, even though they do not use traditional fuels.
The fee hike follows Alberta’s move earlier this year to add a $200 charge on top of its standard vehicle registration costs, which start at $93.
Alberta’s 2024 budget said EVs “tend to be heavier” and put more stress on roads.
The $200 annual tax was described as roughly equal to what regular drivers pay in provincial fuel tax, though none of that tax is exclusively set aside for road repairs.
Critics point out that Saskatchewan and Alberta are the only provinces charging extra registration fees for electric vehicles.
While Ontario no longer offers rebates, British Columbia, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador still provide incentives for new EV buyers.
Some federal rebates have been paused, raising concerns among environmental groups that adding extra provincial fees without offsetting incentives could slow EV sales.
In the United States, more than half of the states have extra fees for EVs, generally ranging from $50 to $200 USD per year.
However, there are federal tax credits of up to $7,500 USD for new EVs, along with other incentives.