Electric vehicle drivers would face a new tax at the charging stations while those running a combustion engine would see some relief at the pumps under state legislation that earned committee approval on Wednesday.

Rep. Mike Schultz, R-Hooper, said his bill (HB301) is intended to capitalize on Utah's status as the "Crossroads of the West" and capture tax revenue from the high number of out-of-state residents who drive on the state's freeways. He said the bill's five-cents-per-kilowatt tax translates to roughly $5 dollars on a typical electric vehicle (EV) charge, less than the gas tax equivalent paid during a typical fill-up.

The bill would also drop the state's gas tax by 2 cents per gallon, while increasing vehicle registration fees by $5.

"I do think we need to do all we possibly can to make sure the non-residents that are moving through the state pay their fare share," Schultz told members of the House Revenue and Taxation Committee.

But Rep. Joel Briscoe, D-Salt Lake City, questioned whether Utah EV owners would truly be shielded from the burden of the charging tax. He said he was sympathetic to the goal of capturing revenue from out-of-state "Tesla people," but also concerned about locals who power their vehicles through a landlord's onsite charger or other commercial charging station.

"I see some double taxation here and potential for triple taxation here," Briscoe said. "I’d like to avoid nickle-and-diming EV owners."

Schultz reiterated that Utah sees a high number of visitors on its roads, but acknowledged that Utahns would encounter the tax while using commercial chargers.

"I think for the most part it is targeted for people driving [from] out of state," he said. "There is going to be a little bit of spillover."

During public comment, multiple witnesses—representing groups like the Sierra Club, O2 Utah, the Citizens Climate Lobby and HEAL Utah—spoke against the bill, questioning the wisdom of imposing new taxes on EV travel at a time when the state and nation are looking to shift away from reliance on fossil fuels.

"We should be incentivizing the adoption of electric vehicles," said Alex Veilleux, of HEAL. "This is just, plain-and-simple, bad tax policy."

The committee's Republican members lauded the proposal as "measured," while pushing back on the characterization of EV taxes and fees. Rep. Brady Brammer, R-Pleasant Grove, said the electric market has been heavily subsidized by the federal government and that there's a need to "cut people a break" on high fuel costs. And Rep. Kevin Stratton, R-Orem, questioned why the charging tax wasn't set higher, to bring EV use closer to parity with the taxes paid by the drivers of gas-powered cars.

The committee voted 9-2 to recommend the bill to the full House for its consideration.