Province starts up tax for EV owners

By Al Beeber - Lethbridge Herald on February 13, 2025.

LETHBRIDGE HERALDabeeber@lethbridgeherald.com

Starting today, owners of electric vehicles in Alberta will be paying an annual $200 tax when they register them.
The province says the $200 is in line with the amount owners of internal combustion engine vehicles pay annually in fuel taxes.
The tax comes just several weeks after the federal government put a pause on its Zero Emissions Vehicle fund rebate program.
Prior to that pause up to $5,000 was available at the point of sale to individuals and businesses for the purchase or lease of light-duty zero emissions vehicles such as cars, sport utility vehicles and light pickup trucks.
Up to $200,000 was available at point of sale to Canadian businesses and organizations for the purchase or lease of medium and heavy-duty ZEVs such as cargo vans, shuttles, trucks and other commercial vehicles.
While some provinces still offer rebates to EV buyers, Alberta doesn’t.
A survey conducted last fall by the Canadian Automobile Association and PlugShare Research suggested 87 per cent of Alberta EV owners are likely to replace their present models with a new one.
But the survey showed only 53 per cent of the province’s EV owners are satisfied with their overall experience at direct current fast-charging stations in Alberta. And only 47 per cent are completely satisfied with public Level 2 charging systems.
The new provincial tax on EVs will be collected by registry agents and online via the MyAlberta eService when owners renew their registrations.
The tax exempts electric motorcycles and electric off-highway vehicles as well as hybrid vehicles.
The new tax was announced in last year’s provincial budget and passed in the legislature in the fall as part of the UCP government’s Financial Statutes Amendment Act.
“This is a fair way for all drivers to contribute to public services, and to help keep roads and highways safe and smooth. Alberta is joining a growing number of places across North America introducing this tax so that drivers of both electric and gas vehicles are treated the same,” said Minister of Finance and president of the Treasury Board Nate Horner in a statement.
Owners of electric vehicles use the same roads as other Albertan drivers. It’s only fair they contribute to public services including those that ensure the continued safety and upkeep of Alberta’s roads. I’m pleased that Alberta registries have stepped up and made it easier for Albertans to comply by providing convenient locations to pay,” added Minister of Service Alberta and Red Tape Reduction Dale Nally.
Almost 15,000 electric vehicles were registered in Alberta last year which the Alberta Motor Association says is a 150 per cent increase from two years ago and that number is increasing.
While the federal government has mandated all new vehicles to be sold in Canada in 2035 to be zero emissions, not everyone is jumping onto the electric bandwagon. In 2023 roughly nine out of 10 new vehicle buyers were sticking with internal combustion rather than going the plug-in route.
In the first nine months of 2023, though, 132,783 new battery-electrics or plug-in hybrids were registered in Canada — for a total of 10.3 per cent of all new vehicle registrations. For 2024, the number of EV units expected to be sold was up to 139,000 units. South of the 49th parallel, Americans bought 1.2 million electric vehicles in 2023 alone.
An EV tax isn’t exclusive to Alberta. Saskatchewan charges $150 to register an EV while multiple American states have taxes, as well. They range in price from $50 to $200 annually while several states also collect a tax at charging stations.

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