By Anthony Capkun
April 21, 2021 – Owners of electric passenger vehicles registered in Saskatchewan will begin paying a new annual road-use fee of $150 to help pay for the maintenance of the province’s roadways.
“These vehicles contribute to wear and tear on provincial roadways but, because they do not consume traditional fossil fuels, their registered owners are not contributing to highway maintenance through the provincial fuel tax,” said Donna Harpauer, Deputy Premier and Finance Minister.
The Ministry of Finance says all road-use fuel tax revenue is dedicated to provincial highway maintenance. In the 2019-20 fiscal year, road-use fuel tax revenue totalled about $454 million in Saskatchewan, while road maintenance expenditures totalled nearly $616 million.
The average annual fuel tax paid by owners of non-electric vehicles in Saskatchewan is estimated at about $150 per vehicle. The revenue from this fee will be dedicated to provincial highway maintenance, says the ministry.
Saskatchewan’s 2021-22 Budget included this new road-use fee, and the necessary amendments to the Fuel Tax Act (2000) were introduced yesterday. The new annual fee becomes effective October 1, 2021, and will be collected by Saskatchewan Government Insurance when the vehicle is registered.
“While this new fee will only apply to passenger vehicles, our government will continue to examine the potential for expanding it to commercial vehicles and inter-jurisdictional trucking,” Harpauer added. “Our government will also consider options to apply a tax at charging stations.”