Hybrid drivers in TN surprised by $100 extra fee for registration

KNOXVILLE, Tenn. (WATE) — Drivers of hybrids and electric vehicles in Tennessee are discovering an extra fee tacked on when they get their license plate tag renewed.

Beginning this year, the registration fee for electric vehicles is $200, and $100 for hybrid and hybrid plug- in vehicles. If you own a gas-powered car, there is no extra fee.

The new registration fee for hybrids and plug-in hybrids is $100 dollars. For electric vehicles, it’s even more. Two hybrid owners told WATE’s Don Dare they’re upset by the new fees.

Wayne Guider, a retired Alcoa worker, has owned his hybrid Toyota Avalon for nearly six years. Jason Mullins, a contractor, owns a hybrid as well. It’s an efficient 2016 Toyota Prius.

Around town, Mullins gets nearly 50 miles per gallon. Overall, 44.3 is the average mileage per gallon. Neither Mullins nor Guider were prepared for the surprise when they renewed their tags.

“They said ‘You know you have an extra $100 fee for that Prius.’ I said ‘Excuse me?’ They said ‘yeah, we have another $100 fee for any hybrids,'” Mullins said.

“The first of January 2024, a law went into effect that all hybrid cars are going to have to pay more for their tags because they’re not paying enough tax on the gasoline,” Guider shared.

His fee is now $129in Blount County. It was $29 last year.

“All of the people out there who are driving hybrids that have not had their tags renewed yet… You are in for a surprise,” Guider said.

“It really does feel like you are being penalized for having a lighter carbon footprint,” Mullins added.

A Department of Revenue printout shows the fee for electric vehicles is a hundred bucks more than a hybrid.

“$100 for any kind of hybrid, and 200 extra dollars for an all-electric vehicle. They also have it pro-rated for years to come to know where that is going to escalate to,” Mullins explained.

The justification for the fees is the loss of state revenue that typically comes in from gas taxes. EV drivers, of course, don’t use gasoline, so they aren’t chipping in any gas tax revenues.

Governor Bill Lee signed the Transportation Modernization Act in April of last year, saying the extra revenue will alleviate urban congestion and fund road projects in rural areas.

“When you get our age you try to spend your money to save money in the long run.” Guider explained, saying that was why he bought a hybrid.

Mullins said with some fuel efficient gas powered cars getting nearly as many miles per gallon as his hybrid, he feels like the decision is reinstating “the fact of being bad business on making a [carbon] footprint.”

Although he doesn’t want to, begrudgingly, Guider will pay the $129 registration fee. Mr. Mullins doesn’t like the added fee either.

“Not fair at all, not fair at all,” Mullins said.

The state says in 2028, the renewal price for all electric vehicles will be $274 a year, and after that, the cost will be adjusted for inflation. The cost for hybrids and plug-in hybrids will remain at $100 through 2028 with the cost being adjusted for inflation after that. For those who may also have a vanity or veteran plate, the cost will be even higher

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