Drivers across Tennessee who own hybrid and electric vehicles are discovering an extra fee added to their vehicle registration.

Governor Bill Lee signed the Transportation Modernization Act saying the extra revenue will help to alleviate urban congestion and be used to fund road projects in rural areas. The justification behind the increase in fees is the loss of revenue that the state typically receives from taxes on gasoline. With electric vehicle owners not purchasing gas and hybrid owners purchasing less than those who drive vehicles powered solely by gas, the state is losing revenues for the transportation department.

Before January 1, 2024, electric vehicle owners were charged a $100 fee on top of the usual $71 registration fee. This year, the state raised the fee to $200, making registration of an electric vehicle cost $271 per year.

For registration renewals on or after January 1, 2027, and before January 1, 2028, the registration fee jumps again to $274 per year. After January 1, 2028, and thereafter, the fee stays $274 but is subject to adjustment annually for inflation.

The registration fee for hybrid electric vehicles and plug-in hybrid vehicles on or after January 1, 2024, and before January 1, 2028, is $100 a year.

Registration renewals for hybrid electric vehicles and plug-in hybrid vehicles on or after January 1, 2028, and thereafter will be $100, adjusted annually for inflation.