House Joint Resolution No. 2025HJ0008.2 requests an interim study by the Legislative Council to examine the current system of electric vehicle registration fees and taxation in Montana. The resolution highlights the growing gap in transportation infrastructure funding due to stagnant motor fuel tax revenues, inflation, and improvements in fuel economy. It notes that electric vehicles, which constituted about 0.5% of Montana vehicle registrations in 2022, contribute minimally to road funding, yet owners face additional registration fees and taxes that exceed those of average internal combustion engine vehicle owners by $152.46 annually. The resolution emphasizes the need for a fairer approach to road funding that does not disproportionately penalize electric vehicle owners compared to high-efficiency gas-powered vehicle owners.
The study will focus on comparing the fairness of registration fees and taxation methods for electric vehicles versus internal combustion engine vehicles, as well as reviewing tax and fee structures from other states. The resolution deletes the previous directive to design a taxation system for high-efficiency light vehicles that is equitable and nondiscriminatory. It also removes the requirement for a subcommittee to include nonlegislative members in the study process. The final results of the study, including findings and recommendations, are to be reported to the 70th Legislature by September 15, 2026.