New taxes on electric cars

[Atman]

New Jersey Considering Electric Vehicle Tax

States and municipalities are getting creative as they look for ways to raise tax revenues from electric cars. More and more plug-in vehicles are on the roads each year, and as gasoline-engine vehicles become more fuel efficient, there's simply less fuel tax revenue coming in. New Jersey is considering a tax scheme that will seem more reasonable to some and unfair to others.

The average EV driver would pay over $100 in extra taxes each year.

New Jersey state Sen. James Whelan (D-Atlantic) has sponsored S2531, which, if enacted would charge EVs a fee of 0.00839 cents per mile. For the average EV being driven about 12,000 miles per year, that comes out to $100.68 in tax. That's higher than what gasoline-powered vehicle drivers are paying. New Jersey's current state tax is 14.5 cents per gallon. If that car drives 12,000 miles per year and gets an average of 25 miles per gallon, that would come out to $69.60 in taxes per year. Of course, federal taxes increase the overall amount for gasoline-engines, making the gasoline tax fairly close to what electric vehicles would be taxed if the bill becomes law.

<snip>

Oregon government officials are considering a bill that would enact a per-mile tax for plug-in and highly fuel efficient vehicles. Fees would be charged for vehicles that get at least 55 mpg. The fee would be about a cent and a half per mile, coming out to about $230 annually for cars being driven about 15,000 miles per year. Ouch.

Officials in the San Francisco bay area are taking a more "technology neutral" approach to raising transportation taxes. They're studying a plan to tax drivers by the number of miles driven instead of number of gallons burned - drivers could be charged less than a penny or up to a dime per mile. To determine mileage, cars registered in the area would be fitted with a GPS device to track the number of miles traveled. Double ouch.

http://plugineurope.com/2013/05/new-jersey-considering-electric-vehicle-tax-autobloggreen/

[retired rooster]

1. taxes

The next thing you know they'll pass a walking tax.

[Atman]

4. I think I'm more concerned about the GPS tracking device.

I supposed it's inevitable in our brave new world. Insurance companies are moving that way, too. Of course, the government never use the information improperly? Right?

People are worried about kicking in their doors and taking their guns. Yet, they allow state legislators and big insurance companies to track their every move. Oy.

[pipoman]

9. Yeah, notice the GPS idea

is in San Fran..not exactly known for it's hunting and recreational shooters..If it was proposed in my state I suspect there would be some elected officials seeking employment after the next election cycle..

[House of Roberts]

2. If electric cars are taxed in lieu of fuel taxes,

they should get a tax credit for utility taxes paid for plug-in charging. Anything else is double taxation.

Any highly fuel efficient car is inevitably very light weight, hence they aren't damaging the road surface significantly. Tax the heavier vehicles higher instead.

Taxing by mileage is an attempt by the fossil fuel industry to cripple the increase of vehicles that don't depend on them for fuel.

[Honeycombe8]

5. +1! Yes, the idea is to kill EVs, so they don't take hold.

They won't tax by mileage, I think, since most EVs can't travel very far on one charge. So they can be used only if you don't travel many miles in a day, or it's your second vehicle to use for short distances.

[Yo_Mama]

12. No it isn't

Obviously these taxes have to be at moderate levels, but we face a world in which EVs and hybrids are going to become increasingly common, and as things now stand, we have no way to fund the road system upon which those vehicles must travel.

EVs and hybrids aren't being charged higher taxes overall. If you figure 25 miles a gallon, federal fuel taxes per gallon are 18.4 cents plus state taxes, so at 9 cents state plus 18.4 cents federal, the tax per mile would be close to 1 cent a gallon.

Since all the federal taxes go into the highway fund and from there are distributed to the states, the state is really just trying to recoup the lost money.

There are federal subsidies for EVs and hybrids, and some states have them too.

Given US CAFE standards, we expect to see rapid increases in these types of vehicles. It is public policy. We also have to find a way to fund the road system under that public policy. $100 or $200 a year is not an unreasonable fee to pay for roads, and if those using the roads aren't paying for them, who will?

Trucks are already paying higher fuel taxes federally (24.4 cents a gallon).

It is not reasonable for EV owners to expect to drive on the roads for nothing - maintaining that mindset will just get us decaying roadways, more car accidents and more destroyed vehicles.

[n2doc]

3. Way to go, NJ, in discouraging electric car use!

We need to keep those gas guzzling cars on the road as long as possible! USA USA USA

[AlbertCat]

7. in discouraging electric car use!

Well, the electricity is made mostly by burning coal.... so....

[n2doc]

8. Doesn't have to be

And cars burn gas from tar sands oil. Feel better?

[AlbertCat]

11. Feel better?

Why would I feel better? Explain.

[IDemo]

15. Not so much any more,

http://thinkprogress.org/climate/2012/05/14/483432/us-coal-generation-drops-19-percent-in-one-year-leaving-coal-with-36-percent-share-of-electricity/

Power generation from coal is falling quickly. According to new figures from the U.S. Energy Information Administration, coal made up 36 percent of U.S. electricity in the first quarter of 2012 — down from 44.6 percent in the first quarter of 2011.

And the per-mile CO2 output of EV's running on electricity from coal power is still lower than that of internal combustion cars.

The CO2 equation for electric vehicles in areas served by hydro, natural gas, nuclear, wind or solar is not even close.

[madville]

6. About like electronic cigarettes

A bunch of proposed taxes coming down the pipe for them, less people are smoking less every year so lower revenues are becoming a problem.

[Rain Mcloud]

10. They will stop at nothing to get even more tax cuts for the Koch's,Adelsons,Bin Whatevers.

The tax money raised by this act will then be used for subsidies to make up for lost profits.

[gejohnston]

13. Road repair taxes come from fuel sales

People who use B-100 have been known to have the state tax man show up at the door. It looks like time to change the way we pay for road maintenance. When I lived in Japan, they had an, IIRC, annual road tax based on engine size. The more ccs, the more you paid.

[IDemo]

16. Which may be fine

except for people like me who drive only an average of 3,000 miles per year, or those who may drive much more than the average.

[Posteritatis]

14. I'm waiting for people to just tax pedestrians for not consuming their fair share. (nt)

[Heywood J]

17. "To determine mileage, cars registered in the area would be fitted with a GPS device"

Sounds like it should be called San Bushcisco instead. Any elected official who proposes GPS-tagging private citizens should lose any D beside their name for any future election.