The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Appropriations
BILL: CS/SB 1070
INTRODUCER: Transportation Committee and Senator Hooper
SUBJECT: License Taxes
DATE: April 24, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Price Vickers TR Fav/CS
2. Nortelus Jerrett ATD Favorable
3. Nortelus Sadberry AP Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1070 imposes specified additional registration fees on certain electric vehicles. The bill
defines the terms “electric vehicle” and “plug-in hybrid electric vehicle,” imposes fees on such
vehicles in addition to registration fees currently assessed against non-electric vehicles, and
authorizes biennial registration of such vehicles. The additional taxes imposed apply to an initial
or renewal registration that has a renewal period beginning on or after October 1, 2023.
The bill provides for distribution of the proceeds of such fees to the State Transportation Trust
Fund and to the county where such a vehicle is registered, and requires the Florida Department
of Transportation to transfer funds allocated to a county to the Florida Department of Revenue
for distribution, as specified. The bill restricts use of the proceeds to transportation expenditures,
as defined in current law; exempts certain electric and plug-in hybrid electric vehicles from the
additional tax; and provides that the additional fees expire on December 31, 2031. The bill also
makes necessary conforming revisions.
The Revenue Estimating Conference has not analyzed the committee substitute however, staff
does not expect the estimate from the prior version of the bill to change. The Revenue Estimating
Conference1 determined, for the prior version of the bill, an increase in receipts to the State
Transportation Trust Fund of $16.4 million in fiscal year 2023-2024 and by $37.1 million
1
See the Revenue Estimating Conference’s adopted consensus estimate available at Microsoft Word - 2 - SB 1070 - Revised
(state.fl.us) (last visited March 10, 2023).
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recurring. Local government revenues were estimated to increase by $9.2 million in fiscal year
2023-2024 and by $20.9 million recurring2.
The bill takes effect July 1, 2023.
II. Present Situation:
The Impact of Electric Vehicles on Revenues
Annual fuel tax revenues at both the state and federal levels are directly based on the number of
gallons of gasoline and diesel fuel consumed. Because some electric vehicles (EVs) are not
powered by gasoline or diesel, and because others use less gasoline or diesel fuel than a
conventional vehicle with only an internal combustion engine, an increase in the number of EVs
operating on the roadways results in less revenue being raised from fuel taxes for comparable
vehicle miles traveled.
Projections for EV sales vary, but a literature review suggests a general consensus that while EV
adoption will not significantly impact state revenues in the near-term, EV sales will continue to
increase over the long-term. The Florida Department of Transportation’s (FDOT’s) EV
Infrastructure Master Plan, completed in July of 2021, concludes that negative impacts to
motor-fuel based revenue streams in Florida could range between 5.6 percent and 20 percent by
the year 2040, depending on the rate of growth of EV sales.3
The National Perspective
Traditional funding for repairs and improvements to the nation’s highways comes primarily from
state and federal taxes collected at the pump. A perceived inequity may exist, in that electric
vehicles do not require motor fuel to operate, or at least as much in the case of vehicles that
operate on a combination of electricity and gasoline or diesel, compared to motor vehicles with
internal combustion engines. The assertion is that EV owners may not be fairly contributing to
the cost of constructing and maintaining public roads through payment of “traditional”
registration fees.
According to the National Conference of State Legislatures (NCSL), a national “growing policy
trend” has developed of imposing a separate registration fee for certain EVs to address the issues
of declining revenues and fair contribution.4 The following may serve to highlight the trend:
 Thirty-one states impose some form of a special registration fee for electric vehicles which is
in addition to the registration fee for motor vehicles with internal combustion engines.
 Of those, 18 states also assess a fee on vehicles that operate on a combination of electricity
and gasoline. The fees range from $48.75 in Iowa to $100 in Alabama, Arkansas, Ohio and
West Virginia.
2
Id.
3
See the FDOT’s EV Infrastructure Master Plan, p. 30 of 52, available at fdotevmp.pdf (windows.net) (last visited February
22, 2023).
4
See ncsl.org, Special Fees on Plug-In Hybrid and Electric Vehicles (ncsl.org) (last visited February 22, 2023).
BILL: CS/SB 1070 Page 3
 Ten states5 enacted laws in 2019 amending or adding new fees for plug-in electric and some
plug-in hybrid vehicles, with fees ranging from $50 per year in Colorado, South Dakota, and
Hawaii, to $225 for a plug-in electric vehicle in Washington.
 The enacted legislation in Alabama, Arkansas, Ohio, and Wyoming set or increased fees for
EVs to $200 annually. In 2021, South Dakota law was revised to impose a fee of $50 for all
plug-in electric vehicles, and Oklahoma tiered its EV fees based on vehicle weight. Louisiana
enacted legislation in 2022 imposing a $110 fee for EVs and a $60 fee for plug-in hybrids.6
 At least five states tie the additional registration fees to the consumer price index or another
inflation-related metric and periodically increase the fees (California, Indiana, Michigan,
Mississippi, and Utah).7
Use of Revenues from Additional Electric Vehicle Registration Fees
Revenue from these additional registration fees is, according to the NCSL, most often directed to
a state transportation trust fund as a fair contribution to the cost of constructing and maintaining
the public roads, with a few states also allocating some of the revenue to support EV charging
infrastructure, for construction and maintenance of highways and bridges, and small amounts to
other uses.8
Types of Electric Vehicles
The U.S. Department of Energy’s Alternative Fuels Data Center uses the term, “electric-drive
vehicles,” to collectively refer to all-electric vehicles (AEVs), hybrid electric vehicles (HEVs),
and plug-in hybrid electric vehicles (PHEVs):
 AEVs use a battery to store the electric energy that powers the motor. AEVs do not have an
internal combustion engine and are solely powered by electricity. AEV batteries are usually
charged by plugging the vehicle into an electric power source.
 PHEVs are powered by an internal combustion engine that can run on conventional or
alternative fuel and an electric motor that uses energy stored in a battery, and are plugged
into an electric power source to charge the battery. PHEVs can travel various distances on
electricity alone but can also operate solely on motor fuel.
 HEVs are primarily powered by an internal combustion engine that runs on conventional or
alternative fuel and an electric motor that uses energy stored in a battery. An HEV battery is
5
Alabama, Arkansas, Hawaii, Illinois, Iowa, Kansas, North Dakota, Ohio, Washing and Wyoming.
6
Supra note 2. Scroll down to the “State Action” heading. The definitions, fees, and fee distributions for each state are
reflected under the heading States With Fees on Plug-In and/or Electric Vehicles.
7
Two states have enacted road user charges (Oregon and Utah), also known as vehicle miles traveled fees or mileage based
user fees and, according to the Transportation Investment Advocacy Center (TIAC), as of May, 2022, three states
(Pennsylvania, Iowa, and Oklahoma) had enacted excise taxes on the electricity that powers electric vehicles. See the TIAC’s
Electric Vehicle Excise Tax Model Language, Appendix B, available at
2022_Electric_Vehicle_Excise_Tax_Model_Language-2.pdf (transportationinvestment.org) (last visited February 22, 2023).
However, legislation enacted in Oklahoma in 2021 imposes additional fees for electric vehicles and plug-in hybrids
dependent upon the weight of the vehicle, ranging from $110 to $2,250 for all-electric vehicles and from $82 to $1,687 for
plug-in hybrid electric vehicles. Supra note 4.
8
Supra note 4.
BILL: CS/SB 1070 Page 4
charged through regenerative braking and by the internal combustion engine and is not
plugged in to charge.9
State definitions are not always consistent with the above definitions and contain some variation.
Careful crafting of a state’s definition is necessary to impose any fees as intended.
Florida’s Registration Structure and Electric Vehicles
Florida’s definition of the term “motor vehicle” for registration purposes is quite broad,10 and all
vehicles meeting the definition, with some exceptions, are required to be registered in this state.11
Current law imposes an initial registration fee (a license tax) of $225 on automobiles and tri-
vehicles for private use, certain trucks, and motor homes and truck campers.12 Thereafter,
registration is generally based on the class and weight of the vehicle. The fees range generally
from $5 for a moped to $1,322 for heavy trucks or truck tractors and wreckers.13
After monthly distributions for education purposes, for completion of the interstate highway
system, and for the Florida Seaport Transportation and Economic Development (FSTED)
Program, the remaining proceeds from registration fees are deposited in the State Transportation
Trust Fund.14
Current law defines the term “electric vehicle” for registration purposes as a motor vehicle that is
powered by an electric motor that draws current from rechargeable storage batteries, fuel cells, or
other sources of electrical current.15 The license tax for an EV is the same as that prescribed in
law for a vehicle that is not electrically powered.16
Thus, Florida law currently makes no distinction between the types of EVs in its definition, as
all-electric and hybrid electric vehicles, plug-in or regenerative, are in fact powered, in whole or
in part, by an electric motor that draws current from rechargeable storage batteries or other
sources of electrical current. The definition does not require that an electric vehicle be solely
powered as described. Additionally, Florida law does not charge a fee in addition to the
registration fee for a “traditional” vehicle as some 31 other states do, for registration of electric
vehicles.
9
See U.S. Department of Energy, Alternative Fuels Data Center: Electric Vehicles (energy.gov) (last visited March 10,
2023).
10
Section 320.01(1), F.S.
11
Section 320.02, F.S.
12
Section 320.072, F.S.
13
Section 320.08, F.S.
14
Section 320.20, F.S.
15
Section 320.01(36), F.S.
16
Section 320.08001, F.S.
BILL: CS/SB 1070 Page 5
Biennial Registration
Currently, any person who owns a specified vehicle17 that is required to be registered18 may
renew the registration biennially during the applicable renewal period upon payment of the two-
year cumulative total; i.e., double the amount of the applicable annual license tax (as well as the
service charge and surcharge).19
Local Option Fuel Taxes
County governments are authorized to levy up to 12 cents of local option fuel taxes in three
separate levies on fuel sold within the county.20 Relevant for purposes of the bill is a tax of one
to six cents on every net gallon of motor and diesel fuel sold within a county. 21 Generally, this
tax is levied by ordinance adopted by a majority vote of the governing body or upon approval by
referendum.22 Revenues from the tax are remitted to the Florida Department of Revenue (FDOR)
by the licensed terminal supplier who owned the fuel immediately prior to removal from
storage23 and transferred to the Local Option Fuel Tax Trust Fund.24
The FDOR distributes the tax proceeds monthly25 according to distribution factors determined at
the local level by interlocal agreement between the county and municipalities within the county’s
boundaries. If no such agreement is established, a local government’s distribution is generally
based on the transportation expenditures of that local government for the immediately preceding
five fiscal years as a proportion of the sum total of such expenditures for the respective county
and all municipalities within the county.26 County and municipal governments may use the
proceeds only for “transportation expenditures.”27
17
Generally, motorcycles and mopeds; automobiles or tri-vehicles for private use; light-duty trucks and heavy duty trucks
and truck tractors of a certain weight; motor vehicles for hire; trailers for private use; trailers for hire; recreational vehicle-
type units; park trailers, travel trailers, and fifth-wheel trailers of a certain length; and mobile homes. Infra note 18.
18
Sections 320.08(1)-(3), (4)(a) or (b), and (6) – (11), F.S.
19
See s. 320.03, F.S.
20
See floridarevenue.com, Florida Dept. of Revenue - Local Option Taxes (floridarevenue.com) (last visited February 24,
2023).
21
Section 336.025(1)(a), F.S. Local option tax rates on diesel fuel are “equalized” statewide, meaning that the full six cents,
and another 1 cent per s. 336.021(1)(a), F.S., is levied on every net gallon of diesel fuel sold in every county. Seven cents’
worth of local option tax revenue on diesel fuel is distributed to local governments, regardless of whether the county is
levying these two taxes. Id.
22
See s. 335.025(3)(a)1.-3. and (3)(b), F.S.
23
Section 206.41(2), F.S.
24
Section 336.025(2)(a), F.S.
25
Id.
26
Section 336.025(4)(a), F.S.
27
Section 336.025(7), F.S. The term includes public transportation operations and maintenance; roadway and right-of-way
maintenance and equipment and structures used primarily for the storage and maintenance of such equipment; roadway and
right-of-way drainage; street lighting installation, operation, maintenance, and repair; traffic signs, traffic engineering,
signalization, and pavement markings, installation, operation, maintenance, and repair; bridge maintenance and operation;
and debt service and current expenditures for transportation capital projects in the foregoing program areas, including
construction or reconstruction of roads and sidewalks. Note that current law authorizes the governing body of a county with a
population of 50,000 or less on April 1, 1992, or the governing body of a municipality within such county to use the proceeds
in any fiscal year to fund “infrastructure projects” under the conditions and as specified in s. 336.025(8), F.S.
BILL: CS/SB 1070 Page 6
III. Effect of Proposed Changes:
Additional License Taxes, Biennial Registration, Distribution, Exemption, and
Applicability (Section 1)
The bill amends s. 320.08001, F.S., defining terms as follows:
 “Electric vehicle” means a motor vehicle that is solely powered by an electric motor that
draws current from rechargeable storage batteries, fuel cells, or other sources of electrical
current.
 “Plug-in hybrid electric vehicle” means a motor vehicle equipped to be propelled by an
internal combustion engine and an electric motor that draws current from rechargeable
storage batteries, fuel cells, or other sources of electrical current that are recharged by an
energy source external to the motor vehicle.
An all-electric (or “battery electric”) vehicle would meet the definition of “electric vehicle,” as it
is solely powered as described, but not meet the definition of “plug-in hybrid electric vehicle,” as
it is not also equipped to be propelled by an internal combustion engine. The definition of “plug-
in hybrid electric vehicle” excludes all-electric vehicles, as they are not equipped to be propelled
by an internal combustion engine, and excludes hybrid electric vehicles, as they are