States charge more for electric cars as new laws take effect

[Judi Lynn]

Source: Associated Press


David A. Lieb, Associated Press Updated 7:02 pm CST, Sunday, December 29, 2019

The new year will bring new charges for some owners of electric vehicles, as an increasing number of states seek to plug in to fresh revenue sources to offset forgone gas taxes.

In Hawaii, the charge will be $50. In Kansas, $100. In Alabama and Ohio, $200.

New or higher registration fees go into effect Wednesday for electric vehicle owners in at least eight states. For the first time, a majority of U.S. states will impose special fees on gas-free cars, SUVs and trucks — a significant milestone as the trend toward green technology intersects with the mounting need to pay for upgrades and repairs to the nation's infrastructure.

Though electric and plug-in hybrid vehicles comprised less than 2% of new vehicle sales in 2018, their market share is projected to rise substantially in the coming decade. State officials hope the new fees will make up for at least part of the lost gas tax revenue that is essential to their road and bridge programs.


Read more: https://www.chron.com/news/crime/article/States-charge-more-for-electric-cars-as-new-laws-14937509.php

[Ohiya]

1. Ohio is $100 for hybrids and $200 for electrics.

I have a hybrid Camry it has averaged 47 mph over the last two years.

[TreasonousBastard]

3. I have a plain ol' Chevy Cruz that gets me in the high 30s-- better overall gas mileage...

is large part of this.

[Ohiya]

4. I Just did some rough calculations...

I saved about $150 a year on gas over a regular Camry and had to stop for gas about six less times a year.

[TreasonousBastard]

2. This has been an issue for a while, even though some states can't...

prove just how much they have lost through electric vehicles vs less driving in general.

But, no states have seen the need for a special tax to fund additional police forces, etc., nor has the federal gummint come up with a special tax for the military.

How abut we dedicate 1% of the military budget to give to the states for infrastructure?

[eggplant]

6. Seems like a no-brainer -- it should be considered part of national defense

like the interstate system.

[Miguelito Loveless]

20. In NC I currently pay more with this fee

Than an SUV does in gas taxes.

[erlewyne]

5. Would raising petroleum taxes be easier?

I have a big pickup 4x4 gas guzzler and have sworn off
driving. Oh, I go a few miles to the grocery and a few
blocks to the carry-out .... but I save money not traveling.
Just stay home and don't worry about gas prices.

Retired! Hermit. Never dreamed of this great life.

[bitterross]

7. No, the whole point is to replace those taxes.

The electric and hybrid vehicles use the same infrastructure as the fossil-fuel vehicles. Most states levy a tax on gas and diesel to help pay for that infrastructure. It is only fair that the people with electric and hybrid vehicles pay their share for using the same infrastructure. They should not get it for free.

[TeamPooka]

8. and that's why toll roads and Toll House cookies were invented

[csziggy]

15. One theory is to tax tires

That money could be used to pay for roads as hybrids and electric vehicles replace gas powered ones. As with gas and diesel, vehicles only used off public roads, such as farm vehicles, could get an exemption.

It would be a reasonable way to finance roads, since the rate of wear on the tires would be roughly equivalent to the time on roads.

[jberryhill]

29. The problem there is that tires are essential safety equipment

I'd just as soon not have another reason for someone to be careening around a blind corner toward me on bald tires, or dodgy used ones.

[csziggy]

36. True, but maybe then we should go back to inspections in all states.

Florida dropped them years ago and I see many cars and trucks that should not be on the road at all - dripping fluids, belching oily smoke, and riding on bald tires. I'm not sure tires costing a bit more would matter to those folks since they are already a danger to themselves and others.

[pbmus]

39. Just take your helicopter..

[rockfordfile]

16. That's not really what's behind this. It's the fossil fuel industry.

[Eliot Rosewater]

28. That was my first thought. Although a loss in tax revenue is obviously part of it.

We are overall rather dumb animals, us humans, and we are going to kill ourselves with global warming while we whine about taxes.

[Miguelito Loveless]

21. I do not advocate "getting it for free"

But why am I paying more than SUVs and pickups driving similar miles.

Also, why are we not taxing oil burners for the damage done to the environment and human health? Last time gas taxes were hiked in my state was 1992.

[bitterross]

25. You are not paying more. On average, you are paying less.

The Federal Government imposes an 18.4cent tax before the state tax. For a car that drives the rough annual of about 13,500 miles per year and gets the average 25 MPG here is the calculation: 13,500/25 = 536 gallons of fuel. 536 * 18.4c = 98.62 dollars. That's just on federal taxes. If you live in Ohio, the state with the largest fee mentioned, the state tacks on another 38.51c/gal. That works out to 206.41 in state fuel taxes. So, if you live in OH, drive a gas-powered vehicle, get the average 25MPG and drive the average 13,500 miles per year your bill is: $98.62 federal plus $206.41 state for a total of $305.04. Take the $305.04 and subtract out the $200 fee and you are still ahead by $105.04.

The cheapest state fuel taxes are in Alaska. There, if you use the averages as above, you'd pay $177.20 in fuel taxes for a gas-powered car. An electric vehicle would have to have a fee of more than $177.20 to be getting a bad deal. Which they do not in AK.

For hybrid vehicles that get an average of 40MPG the annual fee of $100 is still less than if they drove a gas-powered vehicle that got 40mpg.

You can do the math for you state to see how you really fare. Here's where I got the data on state fuel taxes.
https://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States

[Miguelito Loveless]

26. We currently have a bill pending to double the EV tex

to $400. And there is discussion to introduce a bill at the federal level to impose additional taxes, ONLY on EVs.

Our legislature has also prevented Tesla from having more than one sales point in our state. NC auto dealers do NOT want any competition.

[X_Digger]

9. Good. You use public roads, you should have to pay to support them. n/t

[progree]

10. FINE, but they should also get a tax credit for polluting less and fewer greenhouse gas emissions

(one must of course include the pollution and emissions from the sources of the electricity - the electric power plants - in such a calculation).

If we ever get to the point where we decarbonize the electric grid (or at least greatly reduce its carbon footprint), then electric vehicles are the only way we have (besides some stuff in some labs) that seems economical to decarbonize the ground transportation sector. {1}

We must decarbonize both the electric power and transportation sectors -- the electric power sector contributes about 1/4 of the greenhouse gasses, so decarbonizing it entirely still leaves us with 3/4 of the problem. We must decarbonize the transportation sector in order to cut another 1/4 or thereabouts. And even that is not enough. We must do even better than this.

Are not people aware of the growing climate crisis?

{1} Well hydrogen powered cars might also be a contender, but only as long as the hydrogen is produced without substantial GHG emissions -- currently most of it is produced from natural gas, oops.

[ZERTErYNOthe]

11. Serious Question

Serious Question, but with ev's, how do we pay for road's? I was involved in the fuels business when leaded gas was a thing. I've see how the Fuel Tax (cents/gallon) has changed over the years, and it hasn't changed much. That formula doesn't work: We pay the same amount for miles/gallon, even though we put many more miles and wear and tear on the roads per gallon than we did when the rates were set. And now we have ev's that pay no road tax, but still need the same infrastructure, and incur the same infrastructure costs. Next are electric semis, a class of vehicles that usually pays a much higher road tax, making the problem worse.

While I suppose this could be discussed as "revenue sources", I think we should discuss why we are still funding our roads the same way we have for the last 50 years now that we know it no longer works, and will be nonfunctional in the next few years.

Can anyone point me to a solution that is better than a Flat Tax? I drive abut 3,000 miles per year, my bro drives over 200,000+ per year. Should we pay the same flat tax?

[progree]

12. Taxes should be proportional to who causes the pollution and GHG problems and road wear and

road congestion problems.

A little electric weenie-mobile causes far less pollution and greenhouse gasses than a monster SUV driven the same number of miles. Even including the electric power plant emissions that power the electric weenie-mobile.

Less road wear but about the same congestion problem (arguably on the congestion - its easier to see around and over a weenie-mobile than a monster SUV, the profile of big vehicles probably slows down traffic)

And, for the same vehicle, one driven 3,000 miles per year causes 1.5% as much pollution as one being driven 200,000 miles per year. And 1.5% of the road wear and road congestion problem (assuming the same time-of-day driving pattern).

We're not going to solve the climate crisis unless we decarbonize both the electric power sectors and the transportation sectors.

Can anyone point me to a solution that is better than a Flat Tax? I drive abut 3,000 miles per year, my bro drives over 200,000+ per year. Should we pay the same flat tax?

Of course not.

[muriel_volestrangler]

17. In the long term, with a progressive income tax

That way, the people with the most money to spare pay it. They typically get their money through commerce, which depends on the roads.

For now, it should be paid for through fuel taxes - because the incentive to stop using fossil fuels is vital for the survival of a working economy. The USA has very low fuel taxes, and it shows - it produces too much carbon dioxide.

[orleans]

13. illinois is going from $35 for electric cars

to $251 in 2020

[not fooled]

14. I smell

the stench of ALEC and the 666kook666/fossil fuel oligarchs behind this.

Can't get to the article but usually the $$$$$ behind these laws doesn't get mentioned.

[DBoon]

18. Another example of government as a vending machine

The libertarian idea that government provides services on the marketplace, and must charge fees to users for these services.

No notion that government has a role in steering society towards better use of resources.

No notion that such a thing as the common good exists, and that government should steer use towards that common good.

This right wing theory of government should not have any supporters at DU.

We should be opposing these taxes, as they discourage a transition away from fossil fuels. The tax system should be used to discourage fossil fuel use, not to penalize those who use clean alternatives.

[not fooled]

19. Yes

A disincentive to use electric vehicles masquerading as "tax fairness" towards gas vehicle drivers.

Excellent post.

[uncle ray]

23. there are other mechanisms that do what you propose.

for example, if fuel mileage standards didn't exist, ICE cars and trucks would be cheaper, giving them a (larger) price advantage over electric cars. the forced cost of developing more efficient cars is a backdoor tax that all car buyers pay, that ensures we drive more efficient vehicles.

besides, if we are to use taxation as a cudgel, we should be encouraging less driving, period. sure, electric cars are better than ICE cars, but carpooling and public transportation are far better choices that we should be encouraging. you seem to want to choose who to penalize. it is not a binary difference that electric cars are categorically better than ICE cars. should the guy who will buy a Tesla truck for his solo daily commute as a status symbol not be "encouraged" to take the bus too? he could be car pooling in an econobox.

perhaps the fairest road use tax would be calculated from vehicle weight and mileage driven. this would be challenging to implement, as it would be easy to cheat and fairly expensive. this should be supplemented by taxing fuel, whether it's fossil fuel, electricity, or a nuclear reactor in your trunk. also tax tires, since every road going vehicle uses them. tax new car purchases, and registration of vehicles. toll certain roads. tax vehicle insurance. spread it all around to make it impossible to dodge paying your fair share. from ALL of those pools we invest in better alternatives.

[scarytomcat]

30. thank you... you are correct

I did get a rebate for my Volt when I bought it so I am still ahead and I drove 1200 miles last year. These fees are wrong on so many levels

[Tracer]

22. Curious questions for those of you who have electric cars:

1. If you have an outlet at your house --- what has it done to your electric bills?

2. If you usually charge at one of those charging stations, what is the cost to "fill up"?

Thanks in advance.

[scarytomcat]

31. I live in an older condo and the building will have to upgrade the electric grid

so I get no charge at home
So I pay a premium for electric for my car and it is still much cheaper than gas for a the 20 year old Toyota I had.
If I could get electric at home it averages 8 cents a kwh. I think I get between 2 and 3 miles per kwh.

[Steelrolled]

44. I have an electric car

My electric bills went up, but much less than my gasoline bill has gone done (to zero).

I've never really changed on the road. Once I tried it for fun, and there was no cost.

I don't think an electric car is really practical unless you have a charging setup at home. The nice thing about this is you always leave the house with a full "tank".

It gas really would have gone to $5 or more per gallon as we once predicted, I think EVs would be much more popular. At $2.40 or whatever it is a much harder sell.

[TheFourthMind]

24. They'll keep us stuck in the mud until the last drop of oil is sucked from the earth. n/t

[scarytomcat]

32. if they do they will kill us all

people need to get serious
Pay the fee, buy electric and save the planet seems clear to me.

[scarytomcat]

34. I do not understand why Americans think they need SUVs

gas alone should stop them
Time for some sanity

[Jimbo S]

38. It's a scary world out there.

Some people need big cars to protect themselves, along with border walls and owning sixteen firearms.

[ffr]

27. What a joke! That's still only a fraction of what it costs to fill up a gasoline vehicle.

$50, $100, $200 That's like the expense of filling an expensive ICE vehicle for a week or two or four. Big deal. I'll take the electric vehicle and its muscle power any day!

[scarytomcat]

33. my volt has so much pick-up it is unbelievable

and makes no sound, I have trouble telling if it is on.

[PoindexterOglethorpe]

37. Not necessarily.

I drive a Honda Fit. Small gas tank which is mildly annoying, but excellent gas mileage. When I'm not on a road trip I put in gas every third or fourth week. For $20 or less. I do make any number of road trips a year (to Kansas City, to Denver, to Tucson), but even including those I'd say at the end of a year my weekly fuel bill is not over $20. Actually, I should put a small notebook in the car and keep track of every fill up for the next year. Then at the end of 2020 I can report actual figures.

If I did have an electric vehicle I'd cheerfully pay an additional tax. But most of them are hideously expensive, and when a new EV is about the cost of a new Honda Fit, then I'll get one. Oh, and it needs to be as easy and quick to recharge as it is to pump gas. Every time I do a bit of online research about this topic, I'm horrified. My trip to Kansas, which I currently take two days to make although it can be done in one long, if realistic, driving day, would take three, probably four days. So EVs are wonderful for short trips, but not so much for anything longer than a couple of hundred miles.

[ffr]

42. So mostly necessarily, for the rest of us not driving a Honda Fit on $20 ever 3rd or 4th week.

I have a case in point where I've driven an EV 1,000 miles each way, it just makes for a longer day, but best broken into two, at the moment. EV charging at hotels is free for guests, which has the added benefit of not having to fill up with gas, like the old way. You just wake up in the morning and leave with a vehicle fully charged.

Hideously expensive no more. If you're willing to pick up a used Tesla, you're looking at only twice what you paid for your tiny Honda Fit. Used Teslas with unlimited charging are like gold, their ownership cost goes down with use and are utterly and completely addicting to own.

My point is, EVs are the wave that's going to swamp crappy dirty ICE vehicles. Every generation is better than the last. Battery life is increasing, range is increasing, engine output is increasing, and the amount of time it takes to charge them is decreasing. The more people adopt EVs, the quicker the evolution or revolution to EVs goes and we all reap the benefits.

[PoindexterOglethorpe]

46. Did the EV you're citing go four or five hundred miles

between charges? Which is about how far I drive each day on a road trip. Yeah, I stop to get gas a couple of times, but that takes less than five minutes. When I look up "typical range for an electric car" I find articles swooning over a 200 mile range. Even my tiny Honda with its tiny gas tank goes farther than that. And then when I look up recharge time, apparently you can get another 100 miles in 35 minutes, but a full recharge takes 8 hours. So, yeah, that's definitely a longer day. And how common are recharge places? I am aware of a couple in my city, so there are probably more, but still not as readily available as a gas station. And when I'm driving on secondary roads as I do for much of the trip to Kansas, I don't think charging stations are very common.

And I'm still not willing to pay twice what I did for the Honda on a replacement car. Especially since I bought it just over a year ago and will probably keep it for at least five more years, possibly much longer. In my financial world $36k (I spent half that on my current car) is not my definition of affordable.

Yes, I do understand that EVs will become very common, but there are a lot of us for whom they make no sense and won't until they have the price point of our gas cars and can be recharged as conveniently as we can currently get gas.

The "Everybody will soon drive an electric car" is right up there with "No one will ever read a physical book any more". Simply not true.

[sdfernando]

35. As electric vehicles becomre more prevalent states will need to make up for the lost gas tax revenue

Why not do away with the tax on gas and exchange it for a mileage tax? Get mileage recorded with your yearly registration and either get bill for that tax or have that amount added on for the next year's registration fee.

[pbmus]

40. That sounds much to fair and reasonable...

Also politicians would not have a cookie jar of money they could delve into for furnishings...

[sdfernando]

41. It would have the benefit making

those how use the roads the most bear a greater portion of the cost.


And don’t kid yourself, politicians will always find a way to take tax $$ for purposes other than what it was allocated for.

[pbmus]

43. Not sure how you could keep track of mileage...

Unless you put chip in car or something not hackable...

[roamer65]

45. The solution is open road tolling like Illinois.

I love their system. You just keep driving. I have no problem paying for driving on good roads. Just give the poor credits on their toll accounts.

[MichMan]

47. How do you make every mile of roads subject to tolls ?

[roamer65]

48. You don't.

You make the freeways open road tolling. Then use the gas taxes and electric car levies to fix the secondary roads. Let the tolls do the freeways.

Michigan roads need work BAD.

[DUar17]

49. A lot of chat about Toll Roads, how will the state get it's money from foreign owners?

Foreign Company Now Owns Six Major US Tolls Roads (1999)
https://www.thetruckersreport.com/foreign-company-now-owns-six-major-us-tolls-roads/

In a short-sighted attempt to fill holes in their budgets, some states have been selling the control over their toll roads to private foreign investors. The most famous case is the Indiana Toll road 75-year lease that started back in 2006. During the first five years of control, the company in charge more than doubled the toll for five-axel trucks from $14 to $32. That same company has been buying up control of U.S. toll roads since 1999 and now controls 6 major U.S. roadways.