Court unplugs electric car fee
Another fee adopted in the closing days of the Oklahoma Legislature’s regular session this year has been ruled unconstitutional.
The Oklahoma Supreme Court ruled a fee that would have been charged to drivers of electric and hybrid vehicles is an unconstitutional tax, mirroring an earlier ruling on the cigarette fee.
Unlike the $215 million in revenue expected from the cigarette fee, this ruling won’t take such a large chunk out of the budget. If it were allowed to stand, the fee would have brought in about half a million dollars this budget year and about $1 million next year, according to a legislative analysis.
Revenue from the fee was expected to rise as more drivers switch from gas tanks to batteries.
Lawmakers approved the bill in May, adding a $100 annual fee on owners of electric cars and $30 for hybrid vehicles. Supporters said the fees would have helped make up for lost fuel tax revenue that is earmarked for road repair and construction.
In the 6-3 ruling, the court said the Legislature did not create extra regulations or
show any other purpose with the bill than to raise revenue.
House Bill 1449 “clearly levies a tax in the strict sense of the word and the incurred revenue from it is not incidental to its purpose,” wrote Justice Joseph Watt.
Tax hikes must meet a set of strict constitutional requirements to become law. Along with receiving a threefourths majority vote in each legislative chamber, bills must be adopted at least a week before session ends and can only be introduced in the House.
The electric and hybrid vehicle fee bill was passed with a slim majority in the last week of session. Bobby Stem, executive director of the Association of Oklahoma General Contractors, said he was discouraged by the ruling.
“Our roads and bridges are taking a beating from these heavier vehicles, yet they do not contribute equitably to maintenance and repair,” said Stem, who represents road builders. “I understand and appreciate why people might want to invest in these ecofriendly vehicles, however we must make sure that they pay their fair share for upkeep of the infrastructure.”
The lawsuit was filed by the Sierra Club. Another challenge waiting for the court’s decision is a lawsuit filed by gubernatorial candidate Gary Richardson.
Richardson sued to block an automobile sales tax, the electric and hybrid vehicle fee and a freeze on the standard deduction taken on income tax returns. Justices have already upheld the auto sales tax.