EV Tax ?

EV Tax ?

Having received my $7500 federal tax credit for a zero emission vehicle; I read now how some states are considering a "mileage fee" for EV cars because EV drivers are not paying gas tax for road repairs. Wasn't that the EV point to wean off fossil fuels dependency/ reduce greenhouse pollution...

Would hybrid cars be exempt then ?

ICEMAN giveth and ICEMAN taketh ...

( sorry if this was discussed before)

kwoo4424 | June 22, 2014

PS Has anyone got this EV fee yet?

How much and from which state?

Kimscar | June 22, 2014

It makes perfect sense to put an EV tax on cars to fix roads. However the whole system for gas taxes and road repairs is falling apart due to vehicles that get better gas millage. So the whole road repair tax issue needs to be looked at and revised.

DTsea | June 22, 2014

Washington charges $100 per year on EVs added to license plate renewal in lieu of gas tax. Seems reasonable to me. Washington currently waives it's over 9% sales tax on EVs so seems like plenty of favorable tax treatment.

johncrab | June 22, 2014

A flat fee makes more sense than trying to determine mileage on every car. Oregon is going to the extreme and wants to outfit every car with a GPS tracking device to follow drivers around and mail out monthly road tax bills. Whatever they get will be eaten up in administration.

A flat fee or replacement of the petrol tax with a tire tax would make the most sense. A tire tax would leave the novel of those who use, pay, intact. The size of the tire could reflect a heavier vehicle like a construction truck which does more damage. Everyone uses tires. Simple.

In AZ, our registration fees are the highest in the country. An EV is currently an exception. A MS can be registered for about $35/yr. A comparably-priced ICE car would be about $3500/yr. The whole point right now is to clean the air. Petrol taxes have not been raised in 20 years and that's the problem, not the fact that cars are more efficient.

Taxing EV drivers would also create a double-taxation model which would be actionable in court. We pay all kinds of taxes and fees for the electricity, so if they want to hit us with road tax, we should get a rebate on the electricity tax rather than pay two taxes. There is a lot to work out but for now it makes sense to promote EVs and clean the air and deal with how to tax later on when they become a significant portion of cars on the road.

Kimscar | June 22, 2014

A flat fee would disproportionately affect those that don't drive much. The analysis does show that improved milage has reduced money collected. But as pointed out the taxes collected for gas hasn't been raised for a long time. I believe that Congress is in process of raising the gas tax. I think one possible solution would be based on miles driven. some Insurance companies collect that already . | June 22, 2014

I have no problem with an EV road tax. The trick is making any system fair to all, which I suppose it never can be.

Mileage is a primary item, but there are many other variables. Heavy vehicles wear the road more than light ones. Cars that leak oil onto the roadway can't be good either (and most older ICE cars leak oil). Soft tires also are easier on the road than long-wearing hard ones. I'm sure there are factors, but these all add complications that are difficult to manage or even rate.

As an EV fan, I would support mileage fee for all vehicles to pay for road maintenance. Shift the gas taxes to be a pollution tax that would fund EV rebates. As more owners convert to EVs and gas tax receipts go down, the rebate fund would slowly diminish and the rebates would get smaller.

Ok, I'm in a dream world. The various oil and ICE lobbies would never allow this to happen. | June 22, 2014

...are other factors...

TeslaMD | June 22, 2014

As has been discussed on this site before, there are states (such as Maryland) where the gas tax fund is robbed for everything but road use. The shortfall that states have each year, because of their own misuse of funds, make it very enticing for them to dip into that fat gas tax pool and then complain that the gas tax isn't covering road repairs! Most of the population seems totally unaware of the truth and is all too quick to open their wallets to buy into that shortfall nonsense.

If they wanted "fair to be fair" (they don't) the Feds should make it illegal for States to touch the gas tax for anything but road use, which is what that tax is for.

Bighorn | June 22, 2014

As has been discussed, raising the fuel tax is currently being debated in Congress. Other than a sense of equity, there is nothing that can be done with electric vehicles tax-wise to improve the situation. As Gadfly likes to triumphantly point out in the literature, nobody drives electric cars. Zero (rounding error) times(X) a big tax is still a small number.

Edison_Who | June 22, 2014

"Washington charges $100 per year on EVs added to license plate renewal in lieu of gas tax. Seems reasonable to me. Washington currently waives it's over 9% sales tax on EVs so seems like plenty of favorable tax treatment."

Agreed - and while $100 surcharge seems reasonable, what would be more reasonable would be an additional surcharge on those who insist on running studded snow tires for 6 months out of the year (or alternatively, a credit for those of us who manage to exist without running studded snow tires).

sklancha | June 22, 2014

I am too ignorant on this topic to have my opinion taken as anything more than a subjective perspective, but I offer it anyways.

1. If the government is genuinely trying to encourage us into considering going electric, I think it is to soon to start coming up with ways to extrapolate tax from those who made that leap of faith.

2. if truly 99% of vehicles are ICE, then 99% of the cost of road maintenance should come from ICE vehicles.

3. The idea of a flat tax has some merit, as this may encourage low mileage consumers from using private versus public transportation.

negarholger | June 22, 2014

The "road use tax" is broken and needs fixing - regardless of ICE, Hybrid or EV.

David70 | June 23, 2014

I'm in WA too, and as DTsea notes, $100 per year is quite reasonable. I'll be be ahead for at least 65 years with the money I saved on sales taxes. Of course, it depends on the state. Also, I save at least $2500/year on fuel.

Brian H | June 23, 2014

A tax proportional to the cube of the sum of tire diameters would take truck wear on the roads into account.

Brian H | June 23, 2014

It would also cost 21" tire users 35% more than 19" users, which is only fair considering the extra damage they do to the rims of potholes. ;)

Roamer@AZ USA | June 24, 2014

Brian, Careful, the way you are thinking you might be qualified for government employment. Finding the most complex least functional way to do something is the hallmark of good government.

Not sure I comprehend the purpose of the original post. How did you "receive" your tax credit. I used /applied my tax credit but I didn't "receive" a tax credit.

Steve1501 | June 24, 2014

The EV road tax has not come up in Tennessee, but I assume that it will. Here, road taxes are sacred cows because of how many roads transect the state. Tennessee is long and thin and every major North South corridor has to cut through the state as well as the diagonal to St. Louis and Chicago as well as the east west route. TM has announced its first Supercharger in the state to be built in Chattanooga. Sooner or later, someone is going to look at a map and realize that Tennessee is a natural to have multiple SC stations on each route.

Koz | June 24, 2014

Put the VIN in view of the odometer and require an image with registration renewal as verification of current mileage. Require current owners to bring vehicles to tag/licensing offices in order for vehicle title transfers to validate and validate mileage at that time.

DonS | June 24, 2014

Half the lawmakers want to give EVs incentives, and the other half want to tax EVs because they do not buy gas. Isn't democracy wonderful?

Mileage monitoring is very "big brother." If it were to happen, it would never be manual (too expensive). There would be electronic monitoring, and then the NSA and any hacker could see where you drive and how fast you get there.

Raising existing taxes is always better than creating a new tax because new taxes require new government organizations to administer them. We already have way too many people that don't actually produce anything, but either comply with or enforce compliance of taxes and regulations.

DTsea | June 24, 2014

Edison who +1. Studded snow tires should be banned or taxed very heavily...they are really hard on the roads.