HB261: HB261 Motor vehicles; annual reduction of licensing fees for alternative fueled vehicles; provide

Georgia currently charges electric, natural gas, propane, and other alternative fueled vehicles an extra annual registration fee on top of normal vehicle fees, currently $200 for personal vehicles, $300 for commercial vehicles, and $100 for low-speed vehicles. Under existing law, that fee is supposed to adjust each year based on changes in vehicle fuel efficiency and the Consumer Price Index, with the first adjustment set for July 1, 2016. House Bill 261 rewrites that adjustment rule. Instead of tying the fee to fuel efficiency and inflation data, the bill says the fee will simply drop by 5 percent every year until it reaches zero, with the first such reduction now starting July 1, 2026 instead of 2016. The bill also amends the special alternative fueled vehicle license plate rules so that once a driver shows proof they paid the required registration fee, any additional fees for issuing, manufacturing, or renewing that special plate are waived.

• Replaces the current fuel-efficiency and Consumer Price Index based formula for adjusting alternative fueled vehicle registration fees with a flat 5 percent annual reduction.
• Sets the fee reduction to continue each year until the extra registration fee for alternative fueled vehicles equals zero.
• Moves the start date for the first fee adjustment from July 1, 2016 to July 1, 2026.
• Waives any fees for issuing, manufacturing, or renewing the special alternative fueled vehicle license plate once a driver proves they paid the required registration fee.
• Keeps the underlying registration fee amounts of $200 for personal alternative fueled vehicles, $300 for commercial ones, and $100 for low-speed alternative fueled vehicles as the starting point before reductions apply.

Owners of electric, natural gas, propane, and other alternative fueled vehicles in Georgia who pay the extra annual registration fee and who may seek the special alternative fueled vehicle license plate, as well as the Georgia Department of Revenue, which administers these fees and plates.

Drivers of alternative fueled vehicles would see their extra annual registration fee shrink by a predictable 5 percent each year rather than fluctuating with fuel efficiency and inflation data, and those who already pay the registration fee would no longer pay a separate charge for the special license plate.

• Section 1 amends O.C.G.A. § 40-2-86.1 so that once an applicant proves they paid the alternative fueled vehicle registration fee under Code Section 40-2-151, any fees for issuing, manufacturing, or renewing the special license plate are waived.
• Section 2 amends O.C.G.A. § 40-2-151 to keep the existing extra registration fees of $200 (personal), $300 (commercial), and $100 (low-speed) for alternative fueled vehicles.
• Section 2 replaces the prior fuel-efficiency and Consumer Price Index adjustment formula with a flat annual 5 percent reduction in the fee until it reaches zero.
• Section 2 changes the date of the first fee adjustment from July 1, 2016 to July 1, 2026.
• Section 3 repeals any conflicting laws.

1. 2025-02-06House Second Readers (House)
2. 2025-02-05House First Readers (House)
3. 2025-02-04House Hopper (House)

• Spencer Frye (D, HD-122)Primary sponsor
• Lisa Campbell (D, HD-035)
• Saira Draper (D, HD-090)
• Gabriel Sanchez (D, HD-042)
• Ruwa Romman (D, HD-097)
• Karla Drenner (D, HD-085)

• electric vehicles
• vehicle registration fees
• license plates
• alternative fuel vehicles