---
title: HB 261. Motor vehicles; annual reduction of licensing fees for alternative fueled vehicles; provide
collection: bills
id: 2025-2026/hb261
cite_as: HB 261, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb261
md_url: https://georgiacommons.org/bills/2025-2026/hb261.md
text_url: https://georgiacommons.org/bills/2025-2026/hb261/text
source_url: https://www.legis.ga.gov/legislation/69874
date: 2025-02-06
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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next: https://georgiacommons.org/bills/2025-2026/hb262.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb261.md?full=1
bill_number: HB 261
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-04
last_action: House Second Readers
sponsors:
  - Spencer Frye
  - Lisa Campbell
  - Saira Draper
  - Gabriel Sanchez
  - Ruwa Romman
  - Karla Drenner
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB261/2025
upstream_id: 1955593
summaries_model: claude-sonnet-5
topic_tags:
  - electric vehicles
  - vehicle registration fees
  - alternative fuel vehicles
  - license plates
  - motor vehicle law
---

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

## Text

House Bill 261
By: Representatives Frye of the 122nd, Campbell of the 35th, Draper of the 90th, Sanchez of
the 42nd, Romman of the 97th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 2 of Title 40 of the Official Code of Georgia Annotated, relating to
registration and licensing of motor vehicles, so as to provide for annual reduction of licensing
fees for alternative fueled vehicles; to provide for a waiver of the fee for an alternative fueled
specialty license plate upon proof of payment of the required licensing fee; to provide for
related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 2 of Title 40 of the Official Code of Georgia Annotated, relating to registration and
licensing of motor vehicles, is amended in Code Section 40-2-86.1, relating to license plates
promoting or supporting certain agencies, funds, or nonprofit corporations or issued to
qualified motor vehicles or owners with proceeds deposited in the general fund, by revising
paragraph (7) of subsection (l) as follows:
"(7)(A) A special license plate to be issued for alternative fueled vehicles, which
license plate shall be similar in design to the license plate issued to all other residents
of this state except that the commissioner shall place a distinctive logo or emblem on
the license plate which shall distinguish the vehicle as an alternative fueled vehicle
eligible to travel in travel lanes designated for such vehicles under paragraph (4) of
subsection (a) of Code Section 32-9-4. The words 'alternative fueled vehicle' shall be
imprinted on such special license plate in lieu of the county name decal. <del>The funds
raised by the sale of this license plate shall be deposited in the general fund.
</del> (B) As used in this paragraph, the term:
(i) 'Alternative fuel' means electricity, natural gas, and propane.
(ii) 'Alternative fueled vehicle' means any vehicle fueled solely by alternative fuel as
defined in division (i) of this subparagraph, bi-fuel, or dual fuel.
(C) Pursuant to paragraph (19) of subsection (a) of Code Section 40-2-151, the
applicant for a special license plate for any alternative fueled vehicle shall provide
proof that he or she has paid the registration fee prescribed therein prior to the issuance
of any special license plate under this paragraph. <ins>Upon showing proof of such
payment, any fees associated with the issuance, manufacture, and renewal of such
special license plate shall be waived."
</ins> SECTION 2.
Said chapter is further amended in Code Section 40-2-151, relating to annual license fees for
operation of vehicles, fee for permanent licensing of certain trailers, and fee for new
passenger car with paid title ad valorem taxes, by revising paragraph (19) of subsection (a)
as follows:
"(19)(A)(i) Upon registration of an alternative fueled vehicle not operated
for commercial purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00
(ii) Upon registration of an alternative fueled vehicle operated for
commercial purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.00
(iii) Upon registration of an alternative fueled vehicle that is a low-speed
vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
(B)(i) As used in this paragraph, the term 'alternative fueled vehicle' shall
have the same meaning as in division (l)(7)(B)(ii) of Code Section 40-2-86.1;
provided, however, that the fees in this paragraph shall not be assessed on
vehicles which operate primarily on compressed natural gas, liquefied
natural gas, or liquefied petroleum gas.
(ii) The fees in this paragraph shall be in addition to any other fee imposed
on the vehicle by this Code section.
(iii) The fees in this paragraph shall be automatically adjusted on an annual
basis by <del>multiplying the percentage of increase or decrease in fuel efficiency
from the previous year as measured by using the average of combined miles
per gallon published in the United States Department of Energy Fuel
Economy Guide against the current fee, and the resulting increase or
decrease shall be added or subtracted from the fee. This preliminary fee
adjustment shall then be multiplied by the increase or decrease in the
Consumer Price Index percentage for the applicable year, and the result will
be added or subtracted from the preliminary fee to produce the fee for the
year</del> <ins>reducing the fee by 5 percent annually until such fee equals zero.</ins> The
first adjustment shall be calculated and implemented on July 1, <del>2016</del> <ins>2026."
</ins> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

House Bill 261 would gradually phase out Georgia's extra annual registration fee on electric, natural gas, and propane vehicles, cutting it 5 percent a year until it disappears, and waive special license plate fees for owners who already pay that fee.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## Status

- Status: Introduced (2025-02-04)
- Last action: House Second Readers (2025-02-06)
- Sponsors: Spencer Frye, Lisa Campbell, Saira Draper, Gabriel Sanchez, Ruwa Romman, Karla Drenner
- Official page: https://www.legis.ga.gov/legislation/69874

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb261.md?full=1