A new per-mile usage charge on electric vehicles takes effect in 2027—and it affects how Vermont's transportation sector plans fleet costs.
Most Vermont trucking and transportation owners haven't heard about a quiet but significant change buried in H0944, the fiscal year 2027 Transportation Program bill. Starting January 1, 2027, battery electric vehicles registered in Vermont will face a mileage-based user fee that replaces the current flat annual charge. For small businesses running or leasing BEV fleets, or those whose operations depend on electric vehicle adoption, this provision matters now.
Under Section 8 of H0944 (codified at 23 V.S.A. § 4302(e), page 22), Vermont is replacing its existing $89 annual EV infrastructure fee with a per-mile charge of $0.014 per mile driven. The new fee takes effect January 1, 2027.
Here's the math: a vehicle driven 12,000 miles per year would owe $168 annually under the new system—close to the old flat fee for average drivers, but higher for high-mileage commercial use. The fee is capped at $178 per mileage reporting period, which prevents unlimited accumulation but still represents a significant jump for vehicles exceeding roughly 12,700 miles per period.
The mileage-based fee is tracked via odometer readings reported to the state. This is a shift from the old model: instead of a one-time annual payment, owners report actual miles driven during a defined period and pay accordingly. For businesses managing multiple BEVs, this means new administrative processes for tracking and reporting vehicle mileage.
The law includes a transition period. During the first year (calendar year 2027), owners can choose either a $89 one-year option or a $178 two-year option while the new per-mile system is being implemented. After that transition, the per-mile calculation becomes the standard.
The provision applies to battery electric vehicle pleasure cars registered in Vermont. Small businesses that own or lease BEV fleets are directly affected. Transportation companies whose customers or operations increasingly rely on electric vehicles should also pay attention, since the fee structure may influence adoption decisions and cost planning.
If your business is considering adding electric vehicles to your fleet, or if you already operate BEVs, the 2027 effective date gives you time to model the cost impact. A vehicle driven 20,000 miles annually—not unusual for commercial use—would owe $280 under the new system, significantly higher than the old $89 flat fee.
The provision is law as of H0944's passage. Businesses should factor the 1.4-cent-per-mile fee into fleet electrification decisions and budget planning for 2027 and beyond. The transition year (2027) offers flexibility, but the per-mile model becomes permanent after that.
For detailed guidance specific to your operation—whether you manage a small BEV fleet, work in logistics, or advise on vehicle purchasing—Vermont's Agency of Transportation has published technical guidance on the mileage reporting requirements and transition options.
Source: H0944, An act relating to the fiscal year 2027 Transportation Program and miscellaneous changes to laws related to transportation, Section 8, 23 V.S.A. § 4302(e).