mmarshall

Well, since localities obviously can't tax gasoline that electric cars don't use, guess what your friends down at city hall are coming up with?



http://grist.org/news/ev-owners-jolted-by-new-taxes/


States have begun introducing taxes on not using gasoline.
As the number of electric vehicles on the roads starts to climb, a number of states are introducing new fees to offset the projected losses in gas-tax revenues. The AP reports that at least 10 states have considered or passed legislation that would impose such fees on electric or hybrid cars. The new charges could help governments build and maintain the roads and bridges upon which the new generation of vehicles are being driven. But it seems that owners of gas-free cars are also being eyed to plug holes left in government budgets by the improved efficiency of traditional vehicles.

From Bloomberg Businessweek:
Gas taxes are one of the main sources of funding for bridges and roads. But people are driving more fuel-efficient cars, and many states’ tax rates haven’t kept up with inflation during the past decade. That’s left less money available for repairs. Nationwide, gas tax revenue declined every year from $40.7 billion in 2004 to $37.9 billion in 2010, according to inflation-adjusted data from the Institute on Taxation and Economic Policy, a research group in Washington. That’s a big reason Virginia and Washington State are levying green-car taxes and New Jersey, North Carolina, Indiana, and at least four other states are considering doing the same. “The intent is that people who use the roads pay for them,” says Arizona State Senator Steve Farley, a Democrat who wrote a bill to tax electric-car drivers 1¢ for every mile they log on state highways under a yet-to-be-devised tracking system. “Just because we have somebody who is getting out of doing it because they have an alternative form of fuel, that doesn’t mean they shouldn’t pay for the roads.”

From the AP article:
Ryan Turner, an IT professional in Chapel Hill, said he and many other drivers of alternative-fuel vehicles chose their cars because they’re concerned about the environment and the country’s dependence on oil. The Chevrolet Volt driver helped advocate for a statewide plug-in vehicle readiness plan. “On its face, it’s reasonable for electric owners to contribute toward road tax in some way,” he said. “I think what’s suspect is that, given all the issues we have in this state, given the state’s woeful effort so far to promote electric vehicles as part of some statewide agenda, it is suspect that this vehicle tax is a priority given the small amount of the revenue it will bring in.” The policy looks especially arbitrary when more and more conventional cars are achieving fuel efficiency that’s comparable to some hybrid cars, Turner added.
Jay Friedland, legislative director for the advocacy group Plug In America, has asked legislators in other states to phase in special fees after the number of alternative-fuel vehicles reaches 100,000, arguing administrative costs make such policies counter-productive before states reach a critical mass. “We generally say this is a period of time when you should be incentivizing these vehicles, but after a while, yes, everyone should be paying their fair share,” he said. Some states have been mulling taxes based on the number of miles driven each year in each electric or hybrid vehicle. That may seem the fairest way of levying such charges, but it requires government monitoring that many regard as creepy and intrusive. As a result, annual fees are proving more popular with state legislatures.

Sulu

Why not take a holistic approach to paying for roads?

I agree with “The intent is that people who use the roads pay for them” but do not agree with the bandaid approach that seems to be happening. If drivers of ever more fuel efficient cars (including hybrids and EVs) are starting to pay less than their "fair share" of road taxes (which for all purposes is the fuel tax on gasoline and diesel), why not be innovative, "think outside of the box" and come up with a new system of road tax(es) that is fair to everyone -- shared by all road users -- rather than slapping a new, dedicated tax on this new group of road users?

For example, the road use tax seems like a good idea, but don't just slap it on EV and hybrid drivers, implement it across the board, on ALL drivers. Why not reduce fuel taxes at the pump so you do not unfairly tax people who DO NOT (or cannot) drive EVs and hybrids (they would otherwise be hit by the road use tax AND a high fuel tax)? If you take a holistic approach that is implemented across the board, you can also use the road tax system to both encourage "good habits" and discourage "bad habits": reward people who buy smaller cars, EVs, fuel efficient cars, etc. while having people who wish to buy the big gas guzzlers pay more.

Inventing a new road tax system will take hard work and creativity, but that is why we have government: They must lead and act on our behalf, in a manner that benefits the many (not just the few); they should not be puppets who merely sit out their term without getting anything done.

Hoovey689

iTrader: (16)

You make a good point but it comes down to the government we're talking about. I don't think "Holistic" is in their vocabulary. "Reaming" on the other hand..

mmarshall

American roads, IMO, shouldn't need as many repairs today as they actually do. The fact that they do shows that something isn't being done correctly in their construction to start with. Decades ago, I can remember that, outside of Snow-Belt areas where a lot of salt and freezing/thawing occured, once a road was newly-constructed or repaved, it took a LONG time for cracks, potholes, chips, and general deterioration to occur. Also, utility companies weren't constantly digging into the roads (and making lousy surface-repairs) like they are today. I personally think that what has happened is that sub-standard paving materials are being used more and more these days, and that they just can't take the pounding from traffic and weather that they once did without wearing out prematurely. Today, even in the D.C. area (which though some snow/salt occurs, is not considered Snow Belt by any means), I see brand-new and repaved roads in lousy shape in as little as 3-5 years later, where they once lasted 10-15 years.

If those doing the actual paving/construction/repairs would just spend a little more money today on better materials and do the job right to start wth, it would save a whole lot of money later on (more than the extra-spend in the first place) and these road-use taxes wouldn't be needed as much.

bitkahuna

iTrader: (20)

bold things are not typically associated.

Aron9000

The way we tax fuel to pay for road construction is flawed, as pointed out earlier.

If you really want a fair way to pay for road construction, tax people based on number of miles driven. Those who use the roads more often pay more. Guaranteed if we had a tax system like this in place back in the 1940's/50's, there wouldn't be a such thing a suburban sprawl.

Of course tracking number of miles driven is kind of a hard thing to do. You could put GPS trackers in cars, but IMO that's way too big brother. I know if you had yearly inspections and recorded the miles on the odometer, people would find a way to cheat at that(roll back their odometers). Best I can figure is that you enter your VIN and mileage every time you purchase gas, pretty hard to cheat the system that way. Still that's a big invasion of privacy, the government can still kind of track your habits that way.

Sens4Miles

Ha, repairs? that's a laugh. Anyone that's driven in the NYC metro area in the past couple of years know that they don't repair these roads anymore. Every day around here is like driving through a war zone (no exaggeration). The roads are absolutely horrendous. No, they simply want more tax dollars. Has nothing to do with repairs (although a very good excuse to rip off EV buyers).

Whitigir

LOL...This is funny, kinda see where this is Heading.

AMAZING!!! that Toyota Foresee this, and has been always doing Hybrids Vehicles instead of Plug-In, or EV

Way to go Toyota!!!

mmarshall

Agreed....but I wasn't the one who actually made that reference. It was quoted from the original article. I simply tried, IMO, to explain why many roads, today, need repairs that they shouldn't need.

I8ABMR

WOW a tax on not using gas?!?!

How about we tax the crap out of nonsmokers for not smoking ??

Allen K

iTrader: (4)

Hey now, let's not give them ideas...

Sens4Miles

I know, I wasn't implying that you did. I just wanted to highlight that section of the article and the ridiculousness of it all.

mmarshall

Many places already do. Non-smokers, especially when first quitting, often tend to eat more, and they pay a local sales-tax on grocery-food sales and a local meals tax on restaurant bills.

I8ABMR

I see your point but it wasnt done intentionally

bruce van

What about bicyclists? They use the roads and pay ZERO taxes.

Should there be a road bike tax then? What's fair is fair right?