Wisconsin Hybrid Tax

[SDP40F501]

Any of you Madison folks know anything more about what was discussed yesterday in either Budget or Joint Finance? According to the State Journal, a number of proposals (suggested by oil interests) are on the table to plug leaks in revenues from the gas tax and prevent taxes from being levied on big oil, trucking, etc. These include:

• Raise $15 million by putting a $50 annual surcharge on hybrid vehicles.

My boss listened to the proceedings online yesterday and he thought it sounded like it would be a fee tacked on to the registration. That's on top of a proposed $25 increase in all auto registrations.

How bass-ackwards! We use less fuel, so we need to pay more for the privilege? Puts a new spin on the term "hybrid premium!"

Anyone know anything more on this one?

Jim

WISCONSIN STATE JOURNAL

[yardman 49]

Using that logic, they should consider having an "ex-smokers" tax, since they no longer pay into the cigarette tax! :-)

[Toothydaclown]

Originally Posted by SDP40F501

Any of you Madison folks know anything more about what was discussed yesterday in either Budget or Joint Finance? According to the State Journal, a number of proposals (suggested by oil interests) are on the table to plug leaks in revenues from the gas tax and prevent taxes from being levied on big oil, trucking, etc. These include:

• Raise $15 million by putting a $50 annual surcharge on hybrid vehicles.

My boss listened to the proceedings online yesterday and he thought it sounded like it would be a fee tacked on to the registration. That's on top of a proposed $25 increase in all auto registrations.

How bass-ackwards! We use less fuel, so we need to pay more for the privilege? Puts a new spin on the term "hybrid premium!"

Anyone know anything more on this one?

Jim

WISCONSIN STATE JOURNAL

This sounds like it came from the mind of Governor Doyle (the boil on the seat of Wisconsin government).
I hope it isn't true. Or doesn't happen.

[donee]

Hi Wisconsinites,,

Last time I checked, you paid more sales tax for your Prius than a lower mileage car. Make that point. The State already got their money. If the sales tax was 10 % , that is about $300 they got at registration over what you would have given them.

Your need to remind them of that. And then only have the extra $50 per year paid after 6 years.

[TonyPSchaefer]

Sounds like someone's not up for re-election.

What a stupid suggestion.

[SDP40F501]

This morning's Milwaukee Journal Sentinel shows that this proposal has now morphed into a "$50 annual surcharge on plug-in electric vehicles." I wonder how many Teslas are registered in Wisconsin?

Doyle seems to be open to any proposal to increase transportation taxes, so ideas like these get considered. Guess we'll be paying more, one way or another (probably increased gas tax).

Doyle says raising gas tax 'worthy of consideration' - JSOnline

[donee]

Hi SDP40F501,

Its reasonable to tax Plug-ins electric consumption for road repair. Electricity does not have any road tax on it right now.

Let's figure out at what point $50 / year matches the average Prius driver's tax payment in fuel taxes. This web site ( Gasoline tax information - Wisconsin Gas Prices ) says Wisconsin drivers pay $.513 per gallon in tax. In 12000 miles, the Prius at 50 mpg yearly average pays $123.12 (here in Chicagoland I pay about twice this in tollway fees alone!). A Plug-in Prius at 100 mpg in summer driving, and a yearly average of about 75 mpg (Last I checked, it gets plenty cold in the winter in Wisconsin) is going to pay $82.08. So, the 50 dollar fee seems to overtax the Plug-in driver by $28. Scaling things, it works out break even is at 14620 miles.


Remember, we cannot compare this to the 25 mpg car driver, because, he did not pay the sales tax equivalent of a Prius at purchase time.

[accordingly]

Originally Posted by donee

Remember, we cannot compare this to the 25 mpg car driver, because, he did not pay the sales tax equivalent of a Prius at purchase time.

Sorry, I'm new here and considering buying a Prius in WI. I can't find anything on Google about this... it seems to me you're implying that there is additional tax on a Prius at the time of purchase that a 'regular' car would not have. Can you explain further please? I assumed 5.5% was the sales tax rate regardless of vehicle.

[Mike Dimmick]

Originally Posted by accordingly

Sorry, I'm new here and considering buying a Prius in WI. I can't find anything on Google about this... it seems to me you're implying that there is additional tax on a Prius at the time of purchase that a 'regular' car would not have. Can you explain further please? I assumed 5.5% was the sales tax rate regardless of vehicle.

The Prius is typically more expensive, therefore 5.5% of the Prius sticker price is higher than 5.5% of the gas-guzzler sticker price.

Over here we have road tax banded by CO2 emissions, and an additional 'alternative fuel' discount. Currently the Prius emits 104g/km CO2 on the EU standard test, so is in Band B (100-110g/km), and attracts a base tax of £35/year. However, hybrids count as 'alternative fuel', so get a £20 discount for an actual price of £15/year.

The new Prius emits a stunning 89g/km (92g/km with 17" wheels) and so falls into Band A, which is free.

Unfortunately the Lexus RX 400h still gets a £15 discount despite emitting 192g/km CO2, for a cost of £200/year.

The worst offenders emitting over 226g/km CO2 pay £405 this year. Next year the prices for the bands are changed and the 226-255 band goes to £425, while over 255 goes to £435. There will also be special 'first year' rates with less-polluting cars not paying road tax in their first year, while the worst offenders will pay higher - in some cases much higher - rates in the first year.

I personally don't think the bands should be capped - a Lamborghini Diablo emits 500g/km CO2 and should be punished more than a car that emits 256g/km.

[galaxee]

i don't know how/why doyle is still in office.