Are Annual Hybrid/EV Owner Fees Fair?

^^^here is another tax formula that came to me on I95 yesterday:

Avoided Road Tax Approximation Formula:
Green Car Road Tax = $50 + (EVBatt kWhr/20) x $100 {for VA - low tax state}
Green Car Road Tax = $150 + (EV Batt kWhr/20) x $250 {for CA - high tax state}

where: EV batt size kWhr: use 20 for the maximum size for all BEV's

Sample Calcs:
Prius (in low tax state) = $50/yr road tax fee
Leaf (in low tax state) = $150/yr road tax fee
Prius (in high tax state) = $150
Leaf (in high tax state) = $400

Discussion:
> This formula is for states who don't want to measure actual miles traveled (best idea is measure miles used)
> Assumes a green car getting better than 30 MPG needs to pay extra road tax (Fed+State)
> Assumes 12000 miles per year avg car use

HIDDEN TAXES- Let's define "Hidden Green Car Taxes" (HGT) as excess taxes on green cars such as higher sales tax, higher annual property taxes, and electricity taxes.

HIDDEN TAX RULE: If green car owners are getting Tax Relief for Hidden Taxes, then the above formula applies to compensate the states for lost road use taxes

STATE POLICY COMMENT: The formula above just provides a mechanism to hold green car owners aproximately "neutral" on taxes. If the state wants to encourage green cars, then they can add some extra credits.

Or in Virginia's case, the Hidden Taxes on green cars is substantial already (HGT=$$$$). But they still want to charge a extra road tax fee to green cars. That is punitive and retaliatory and will hurt green car sales, which is apparently the political choice in VA (hope not though).

 

A SIMPLE road use tax is the best. Just increase the gasoline tax if you need revenue to fix roads/bridges. Any other use of the road use revenue should be grounds for criminal prosecution of the officials in charge!

Fair is a four letter word! It is used to foist stupidity on us by our politicians.

JeffD

 

I hear you Jeff, but Grover Norquist is pressuring repubs to hold the line on taxes.
Grover's organziation followed the VA case closely (and were not happy last time I checked).
Therefore increasing road taxes is not an easy option for many states. Is regressive too.
Also green cars do face possible outrage if we keep avoiding the heavy taxes on others.

So I am saying, maybe we are better off as green car owners, explicitly paying the avoided road tax, assuming we also get tax relief on hidden taxes on green cars.

 

Ugh, I read somewhere they were not part of the package.... wonder how much Big Oil paid the Governor for his ridiculous suggestion.

 

Well, most people think the primary motive was to hit the blue side of the state (Northern Virginia) harder with the overall tax bite. Happily we have at least have two Richmond Prius owners (you and your spouse) to share the tax burden with us. But please go to NoHybridTax.com and move up here and help us out.