Oklahoma Supreme Court Strikes Down Electric and Hybrid Vehicle Registration Fees

Score a win for the Sierra Club as the Oklahoma Supreme Court ruled on Tuesday that the electric vehicle registration fee is unconstitutional. The fee was passed in the last five days of the legislative session

“The Sierra Club applauds the Oklahoma Supreme Court for striking down this biased and illegal tax on electric vehicles,” said Johnson Bridgwater, director of the Sierra Club Oklahoma chapter. “There are clear signs that the car industry is poised to go electric quickly and, in Oklahoma, this switch is badly needed. To clean up our dirty air, cut climate emissions and assure Oklahoma is keeping up with the transition to a clean energy economy, we need to accelerate the transition to clean, electric vehicles. With this arbitrary fee removed, Oklahomans can drive down the highway to clean transportation, leaving dirty transportation in the dust.”

The fee would have raked in nearly half a million dollars this budget year and about $1 million in 2018, according to a legislative analysis.

Lawmakers added a $100 annual fee on owners of electric cars and $30 for hybrid vehicles.

In the 6-3 ruling, the court determined the Legislature’s sole purpose on House Bill 1449 was 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.

“Our roads and bridges are taking a beating from these heavier vehicles, yet they do not contribute equitably to maintenance and repair,” said Bobby Stem, executive director of the Association of Oklahoma General Contractors. “I understand and appreciate why people might want to invest in these eco-friendly vehicles, however we must make sure that they pay their fair share for upkeep of the infrastructure.”

“I’m disappointed with the Oklahoma Supreme Court striking down the registration fee for electric and hybrid vehicles,” said Governor Mary Fallin. “Fortunately, lawmakers are in special session now working on how to adjust a shortfall of $215 million of state appropriations caused when the state Supreme Court earlier this year struck down a proposed smoking cessation fee.”