Mississippi imposes new tax on hybrid, electric vehicles

JACKSON, MS (WLBT) - Owners of hybrid and electric vehicles in Mississippi received a notice from the state Department of Revenue informing them of the new annual tax on their vehicles.

The new tax, which took effect on October 1, will tax $75 for hybrid vehicles and $150 for total electric vehicles annually.

The tax is in addition to regular tag fees and must be paid at vehicle registration or renewal.

Cathy Waterbury, The associate commissioner of the Department of Revenue and she said the revenue attained from the tax will go towards the state’s highway fund, infrastructure and the Department of Transportation.

State residents that drive gas-required vehicles are taxed 18 cents for every gallon of gas they purchase. The revenue collected goes toward the state’s transportation and infrastructure fund.

“Raise the gas tax, I don’t know," said hybrid car owner Harry Baldwin. "There’s got to be other ways, but I always thought the gas tax was a fair way to go. You pay for what you use.”

State leaders adopted this new tax as an alternative to raising the gas tax.

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