Virginia approves USD64 annual fee on HEV & EV owners

Virginia approves USD64 annual fee on HEV & EV owners

Virginia approves USD64 annual fee on HEV & EV owners
30/04/2013 08:36 GMT

New Jersey senator tables pay per mile bill

Virginia Governor Bob McDonnell signed the amended transportation bill into law last month, legalising a USD64 annual Alternative Fuel Vehicles Fee on owners of hybrid and electric cars in the state, states a USA Today report. The new fee forms part of a broader Transportation package announced by McDonnell in January this year.

DTsea | May 1, 2013

Seems reasonable.

PaceyWhitter | May 1, 2013

Sucks for the gas guzzling hybrid SUV's

jchangyy | May 1, 2013

Reasonable way to KILL electric revolution. I wonder if someone from the big oil pushed for the legislation. wouldn't surprise me.

mrspaghetti | May 1, 2013

$64/year isn't going to kill anything. EVs do use the road, but don't pay gas taxes so that doesn't seem unreasonable to me (assuming gas taxes fund road building & maintenance).

DTsea | May 1, 2013

COme on jchangyy fair is fair. ICE drivers pay gas tax. VA gas tax (state portion) is 20 cents a gallon. in a 25 mpg ICE car, 12000 miles a year, they pay the state $96. That pays for road and bridge maintenance. Why is it unfair for EV drivers to pay 2/3 of that? And a Model S is a very heavy car.... it still represents a tax break.

It gets worse if you drive an SUV a lot. 15000 miles at 16 mpg would mean $187 per year in state gas tax.

Plus the Federal government adds another 18 cents.... so the 25 mpg guy pays about $180 in gas tax a year, and the SUV guy about $300.

When we EV owners demand special breaks for everything- THAT's how we kill EVs, by making everybody else either a) feel like they subsidize us unfairly and b) don't want to be 'takers' and c) think that EVs dont make sense without subsidy.

My state didnt even charge our (9.6%) sales tax on my Model S. I can pay a yearly road fee for a LONG TIME with that money.

MS-lover | May 1, 2013

how much extra will it cost the state to collect the taxes? not sure ROI is worth states enacting such laws at this point

dlewis | May 1, 2013

Actually VA gas tax is 17.5 cents per gallon and if I understand correctly it is changing to 3% of the wholesale price of gas (6% for diesel) so it will be going down, but they also upped the sales tax by .3% to offset it. So, as an EV owner I get to pay the EV fee, which by itself I consider reasonable and justifiable, AND the higher sales tax while ICE vehicles get a reduction in tax at the pump.

hfcolvin | May 1, 2013

The original version of the bill did away with the gas tax entirely and included a $100 alternative fuel vehicle fee, so I'm OK with this as long as a gas tax is still around. I think the funds from the fee are (supposed to) going toward mass transit funding.

Pungoteague_Dave | May 1, 2013

As a Virginia Model S owner I support this fee. It is only fair - and the whiners don't get it in my view - we own an expensive, heavy car and should pay our share of road usage. Let's not be sanctimonious about owning green vehicles and expect subsidies for driving our rich people toys...

L8MDL | May 2, 2013

Interesting that you folks in Virginia will be paying a tax on a car that cannot be sold in your state. Something is wrong with that picture. "Taxation without representation" comes to mind!

Doug H | May 2, 2013

And Republican say we are Taxed Enough Already (TEA). As long as they like the tax, new taxes are fine.

What hypocrites.

GReese | May 2, 2013

It's bad policy.

In the long-term, it makes total sense.

In the short-term, while we are trying to move people away from fossil fuels, it's stupid.

The government obviously needs to pay for the infrastructure on which we drive, regardless of what powers the things we drive. If everyone were driving EVs and the financing model were based on gasoline taxes, we'd have no roads on which to drive. But that's not the case. The situation is that we need to build out a commercial infrastructure to support EVs. Today, there should be no tax. Tomorrow, there should be one.

draymond | May 2, 2013

Pungoteague_Dave - you are the one who doesn't get it. They didn't create this tax just for rich guys like you who consider your cars to be toys. It affects everyone, those who own an EV/hybrid and those who are considering purchasing one.

Even as the federal government is providing subsidies to encourage EV adoption we see states like Virginia passing measures to discourage it. Why is that?

It's not about fair taxation. The gas tax doesn't just target drivers. Also, there are plenty of tax sources (such as federal highway funds) that are used to build and maintain the roads and these are paid by everyone regardless of how often they drive.

rgreenway | May 2, 2013

I think that in most if not all states, we pay taxes on our electricity generation and distribution, so EV owners are paying taxes of a different sort.

It might make more sense, since we do want to encourage EV adoption, to allocate a portion of the taxes on electricity generation to highway maintenance!

I would also encourage states to use a portion of the Utility taxes to fund charging stations in public places.

jamestily | May 2, 2013

The fee might seem reasonable now, but wait until they need more money and start raising the rate. With the small number of vehicles on the road now and in the immediate future, the income for the state is minimal and the cost to those ev owners is annoying. Other states offer incentives. And lets not forget the personal property tax, for a car like the tesla, how much is that, and what is that money spent for? They should have waited for a while. Just my personal opinion, please do not take offense.

Sudre_ | May 2, 2013

Did I read that right above. They are reducing taxes on gas only vehicles and increasing taxes on gas saving vehicles. Now that sound real smart. At least most states are just adding a tax not encourging people to buy low mpg cars. To me this does have big oil written all over it.

jamestily | May 2, 2013

Maybe it was advice from Romney to the governor, since Tesla is a loser in his opinion.

holstein13 | May 2, 2013

In South Florida, I already pay 18% taxes on my electricity used. How much taxes do you pay on your electricity in Virginia? For the same 12,000 miles of charging your Tesla, how much money will the state get from your electric tax?

Seems to me that they are double dipping, pending your calculations.

holstein13 | May 2, 2013

OK, I just ran the numbers. If your car gets 22 MPG you would use about 682 gallons of fuel a year to drive 15,000 miles. That's $116 per year in fuel tax.

The cost of electricity is $467 with 18% of that going to taxes, so it's $84.06 the state will get from the Tesla for the same mileage.

I don't see why they need to charge an additional $64 dollars to electric vehicle users. These are not the correct incentives that we should have as a society.

ColonyGolfer | May 2, 2013

This girl, Virginia......Isn't she the same one that won't let Tesla sell cars?????

hfcolvin | May 2, 2013

Doug H

The Republican governor has caught some heat for this and I've enjoyed watching the squirming.

Good point, all, about the Tesla dealer issue. I might have to point that out to m state rep and DMV commissioner.