EV Tax Penalty

[SlaterGS]

That may be only one horse-powered but the tailpipe emissions are a real shitshow.

I was honestly trying to come up with a good joke involving shit and you nailed it. Well done lol

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[lefkonj]

It isn't a penalty but a road use tax. Makes complete sense because gas taxes pay for road maintenance and building. You don't pay for gas so that tax is lost. They need the funds to maintain your roads. I know the Rivian is amazing off road but you must admit it is fine. You aren't paying for gas so this is great, when you think that an average full tank of gas is $40 then that is 10 tanks, or on average 12 weeks of gas.

 

[sub]

Don't view this as an intentional penalty for EV ownership.

Instead, think of it as the government taking the long view and playing politics to avoid taking blame for doing what needs to be done. The current source of funding is insufficient to actually maintain road infrastructure. Need proof, just look at the crumbling roads and bridges.

But if politicians raise gas tax enough to actually cover the expenses a big chunk of the electorate will freak out. However if they introduce a high EV tax, many of the people who would freak out by a higher gas tax will applaud the move. Some EV owners will be annoyed, but they are few in number, and generally less adverse to paying their fair share so politicians are less afraid to introduce a new tax that only effects EV owners.

And in a few years, when a majority of vehicles are EV's, the road fund will be adequately funded, and the politicians won't have to take any blame for raising taxes.

 

[Zoidz]

Offsets the lack of gas tax revenue. Multiple states are doing this due to perceived reduction in revenue from ICE consumption.

But there is limited transparency on how the amount is set. Let’s use a hypothetical example:

State tax on a gallon on gas = 0.52

$400 EV equivalent / 0.52 = ~769 gallons annual consumption

average ICE fill up : 18 gallons

fill ups per year: ~42

YMMV

It obviously varies widely based on consumption. A flat tax that disregards usage is “regressive” and favors the government coffers.. I expect politicians will find a way to make it “progressive” based on income.

Pennsylvania has a bill that is moving forward and will likely beome effective. It's named "Elimination of Alternate Fuel Tax on Electric Vehicles" which everyone is supposed to voluntarilly pay but no one does. The new flat tax is $290 per year. I read an article that it supposedly is based on the average mileage driven per year times the state fuel tax of $0.611 divided by average fuel mileage.

Example: (12k miles X 0.611 tax per gal ) / 25 mpg = $293.25

That's pretty close to the numbers they used.

There's also this obscure section. Pennsylvania has an alternate fuels tax in section 9004(D) - I believe this is indicating that if you use a public charger, the alternate fuels tax must be paid by the network, which you are obviously paying for in the end. So effectively, you are double taxed?? I'm not good with legalese, perhaps I'm wrong....

(G) RESIDENTIAL EXEMPTION FROM ALTERNATIVE FUELS TAX.-- ELECTRIC VEHICLES SUBJECT TO THE ELECTRIC VEHICLE ROAD USER CHARGE UNDER SUBSECTION (A) ARE EXEMPT FROM THE TAX IMPOSED UNDER SECTION 9004(D) (RELATING TO IMPOSITION OF TAX, EXEMPTIONS AND DEDUCTIONS) ONLY IF THE ELECTRICITY IS DERIVED FROM THE LEGAL RESIDENCE OF THE OWNER OR REGISTRANT.

 

[Throwdown]

Colorado is $50 per year at the moment

 

[runwithscissors]

All states will probably do this once EV's reach critical mass, just a matter of time.

Not only that but they'll task Rivian/Tesla/Others with submitting how many miles you drive so they can tax you based on that. Time of use charging and possibly controlling when we can drive. The end goal is not to have us drive $80k electric vehicles, it's mass transportation that they are aiming for. Electric is just a stop-gap measure in the meantime to force everyone off ICE.

 

[kylealden]

My only complaint about these is they should really be restructured holistically - to eliminate gas taxes and EV fees and replace them with a mileage tax indexed to the weight of the vehicle. Couple that with carbon and particulate emission taxes on all energy.

Externalities need to be priced in across the board.

 

[Hillbilly]

These are some heavy vehicles. I get it.

 

[NY_Rob]

Not only that but they'll task Rivian/Tesla/Others with submitting how many miles you drive so they can tax you based on that.

As you are from NY.. you know in our state the DMV already knows exactly how many miles we drive every year as your odometer reading gets punched in every year when you do your state inspection and that record gets uploaded to Albany instantly.

 

[PappaBolt]

Not only that but they'll task Rivian/Tesla/Others with submitting how many miles you drive so they can tax you based on that. Time of use charging and possibly controlling when we can drive. The end goal is not to have us drive $80k electric vehicles, it's mass transportation that they are aiming for. Electric is just a stop-gap measure in the meantime to force everyone off ICE.

I hope your magic eight ball is wrong about that dystopian future. If it comes to that we can all immigrate to what’s left of Canada.

 

[PappaBolt]

…every year when you do your state inspection

Can we just call it a tax and dispense with the “inspection” formalities?

 

[WSea]

They are but not fairly, they need to remove the gas tax and add the same amount to all vehicle registrations. Alternatively device a charge per mile on registration for EVs so you pay per use like ICE. I’m all for paying for road maintenance but make it fair. That $400 is like driving a Jeep Grand Cherokee at 20 mpg 42k a year, that is 2.4 times the average in Oklahoma of 17.7k a year. Should be closer to $200.

Looks like they are trying to make local EVs pay for out of state registrations that use the roads but do not consume fuel.

This!
"They are but not fairly, they need to remove the gas tax and add the same amount to all vehicle registrations."

 

[Mathme]

I think it should be a per mile tax that's levied at registration time for ALL vehicles -- BEV and ICE. People state their mileage annually or when the vehicle is sold, and that tax then paid.

 

[SANZC02]

I think it should be a per mile tax that's levied at registration time for ALL vehicles -- BEV and ICE. People state their mileage annually or when the vehicle is sold, and that tax then paid.

I agree, only think I would add is it should have tiered pricing based on weight.

 

[SoCal Rob]

But does it have CarPlay?

It has CarriagePlay. The interface is simple because they reined in the updates.

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