The Oklahoma Supreme Court overturned Tuesday another fee lawmakers passed at the end of regular session.
More than two months after hearing arguments, the justices have struck down annual registration fee increases of $30 for hybrid and $100 for electric cars.
"Here, what you see is not that it’s trying to exact a general taxation for the benefit of the general public but, rather, a specific fee in exchange for the services the state provided," state General Counsel Abby Dillsaver argued in August.
The state's argument hinged on the fact the increased revenues were earmarked for road maintenance.
"They’re not deposited into the general fund. They’re deposited into the state transportation fund, so they go specifically to uphold the costs that the state incurs in maintaining the wear and tear. This court has long held that this is an acceptable fee," Dillsaver said.
Justice Patrick Wyrick seemed to disagree at the August hearing.
"An electric vehicle may never drive on our roads, or it may drive on them a whole lot. They pay the same fee, regardless, and that’s why it starts to sound a whole lot like a tax, rather than a fee," Wyrick said.
The decision represents a much smaller chunk of revenue lost to the state than the $1.50 cigarette tax challenged in the Oklahoma Supreme Court at the same time. The increased hybrid and electric vehicle fees would have brought in $422,000 this year and $1 million next year.
