HB 261: Motor vehicles; annual reduction of licensing fees for alternative fueled vehicles; provide

Georgia currently charges owners of alternative fueled vehicles (electric, natural gas, or propane powered) an extra annual registration fee on top of normal vehicle fees: $200 for personal use, $300 for commercial use, and $100 for low-speed vehicles. That fee is currently adjusted each year using a formula tied to changes in fuel efficiency and the Consumer Price Index. This bill replaces that formula with a simple annual 5 percent reduction, starting July 1, 2026, until the fee eventually reaches zero. It also changes the rules for the special 'alternative fueled vehicle' license plate: currently, money from selling that plate goes to the general fund. The bill removes that general fund provision and instead says that once an owner proves they paid the required annual registration fee, any fees for issuing, manufacturing, or renewing that special plate are waived.

• Replaces the current fuel-efficiency and inflation based formula for adjusting alternative fueled vehicle fees with a flat 5 percent annual reduction, starting July 1, 2026, until the fee reaches zero.
• Removes the requirement that funds from selling the alternative fueled vehicle license plate be deposited into the state general fund.
• Waives the fees for issuing, manufacturing, and renewing an alternative fueled vehicle special license plate once the owner shows proof they paid the separate annual registration fee.
• Keeps in place the existing $200, $300, and $100 registration fees for personal, commercial, and low-speed alternative fueled vehicles as the starting point before the annual reductions begin.

Owners of electric, natural gas, and propane vehicles in Georgia, including both personal and commercial vehicle owners, as well as the Georgia Department of Revenue, which administers vehicle registration and issues the special alternative fueled vehicle license plates.

Owners of electric and other alternative fueled vehicles would see their extra annual state registration fee shrink every year instead of fluctuating with fuel efficiency and inflation data, and some owners would no longer pay separate fees for their special license plate, lowering the overall cost of owning these vehicles over time.

• Section 1 amends O.C.G.A. § 40-2-86.1 to remove the rule sending alternative fueled vehicle license plate proceeds to the general fund.
• Section 1 adds a waiver: once proof of paying the required registration fee is shown, plate issuance, manufacturing, and renewal fees are waived.
• Section 2 amends O.C.G.A. § 40-2-151 to keep the $200, $300, and $100 base fees for personal, commercial, and low-speed alternative fueled vehicles.
• Section 2 replaces the old fuel-efficiency and Consumer Price Index based annual fee adjustment with a flat 5 percent annual reduction until the fee reaches zero.
• Section 2 moves the first annual adjustment date 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
• alternative fuel vehicles
• license plates
• motor vehicle law