Mississippi Imposes Annual Taxes on Electric and Hybrid Vehicles

Mississippi will impose new annual taxes on electric and hybrid vehicles. Effective October 1, 2018, the electric car tax is $150, while the hybrid car tax is $75. Mississippi imposes the new taxes in addition to other taxes on these vehicles.

Scheduled Increase for Electric Car and Hybrid Taxes

Beginning July 1, 2021, and each following July 1, the taxes will increase. The increase will be a percentage equal to the U.S. inflation rate for the prior calendar year.

Payment of Annual Taxes

Taxpayers pay these taxes to the county tax collector the same way they pay the annual highway privilege tax.

Electric Vehicles Subject to Tax

An “electric vehicle” means a vehicle that is powered by an electric motor drawing current from:

  • rechargeable batteries;
  • fuel cells; or
  • other portable sources of electrical current.

In addition, the electric vehicle must be:

  • manufactured for use on public streets, roads and highways; and
  • required to have a license for operation.

Hybrid Vehicles Subject to Tax

A “hybrid vehicle” means a vehicle that:

  • uses more than one form of onboard energy to achieve propulsion;
  • is manufactured for use on public streets, roads and highways; and
  • is required to have a license for operation.

H.B. 1, Laws 2018, First Extraordinary Session, effective as noted

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