EV Registration Fees

[summakor]

My state, Maryland, just instituted a $250 biannual ($125/yr) registration surcharge for EVs and $200 ($100/yr) for PHEVs. It's to offset lack of revenue from gasoline taxes used for road maintenance. Gas tax in Maryland is 46 cents a gallon so $125 would be 272 gallons of gas. That's the equivalent of

8,100mi at 30mpg
12,200mi at 45mpg

So I suppose that's.... fair?

Here's a list of what other states have done:

https://taxfoundation.org/data/all/state/electric-vehicles-ev-taxes-state/

Is it fair?

 

[Drew21]

Recently, there was a similar discussion here that might be of interest to you.
https://mynissanleaf.com/threads/really-200-gas-tax.35305/

 

[ADAM'S LEAF]

My state, Maryland, just instituted a $250 biannual ($125/yr) registration surcharge for EVs and $200 ($100/yr) for PHEVs. It's to offset lack of revenue from gasoline taxes used for road maintenance. Gas tax in Maryland is 46 cents a gallon so $125 would be 272 gallons of gas. That's the equivalent of

8,100mi at 30mpg
12,200mi at 45mpg

So I suppose that's.... fair?

Here's a list of what other states have done:

https://taxfoundation.org/data/all/state/electric-vehicles-ev-taxes-state/

Is it fair?

The only “fair” way is to charge based on miles driven. With all the technology in new vehicles (ev and ic) , it seems that it would be possible. I have an ev which gets driven about 4,000 miles a year. GA just charges a flat fee. My cost per mile feels like it’s excessive.

 

[ibeckerman]

My state, Maryland, just instituted a $250 biannual ($125/yr) registration surcharge for EVs and $200 ($100/yr) for PHEVs. It's to offset lack of revenue from gasoline taxes used for road maintenance. Gas tax in Maryland is 46 cents a gallon so $125 would be 272 gallons of gas. That's the equivalent of

8,100mi at 30mpg
12,200mi at 45mpg

So I suppose that's.... fair?

Here's a list of what other states have done:

https://taxfoundation.org/data/all/state/electric-vehicles-ev-taxes-state/

Is it fair?

would you be happier if it were $250 a year as is being proposed in Pennsylvania? As is noted in other posts, the only fair solution is a fee per mile basis. Taxing gasoline is unsustainable for generating revenue. In addition to the EV's, there are fuel efficient cars like the Prius and plug-in hybrids get very good fuel economy. The real problem is the fuel tax model presumes all cars are getting about the same mpg. This is no longer the case.

My state, Maryland, just instituted a $250 biannual ($125/yr) registration surcharge for EVs and $200 ($100/yr) for PHEVs. It's to offset lack of revenue from gasoline taxes used for road maintenance. Gas tax in Maryland is 46 cents a gallon so $125 would be 272 gallons of gas. That's the equivalent of

8,100mi at 30mpg
12,200mi at 45mpg

So I suppose that's.... fair?

Here's a list of what other states have done:

https://taxfoundation.org/data/all/state/electric-vehicles-ev-taxes-state/

Is it fair?

 

[Chad E. Mo]

Fee per mile per pound, methinks.

No one could argue that's unfair, it's the assessment logistics that are the conundrum.

The tax on fuel was/is a no-brainer, because it's consumed proportional to road use and collected at the pump. If EVs charged only at commercial DCFC, there would be no discussion either... tax at point of sale.

 

[MikeinPA]

I am OK with fee per mile with adjustment for vehicle weight PLUS some sort of societal charge for keeping the roads in good condition everywhere. Easiest to just pay as part of the vehicle registration and also the most honest way to let drivers know what they are funding. After a lot of thought I feel like gas taxes at the pump are just sneaky and get in under peoples radar too easily.

But, after some other thoughts, I realize I drive almost entirely on local roads that are paid for by local government--which I already pay handsomely through property and wage taxes....

 

[Burt]

I realize I drive almost entirely on local roads that are paid for by local government--which I already pay handsomely through property and wage taxes....

You need to get out and about more.

 

[wmcbrine]

As is noted in other posts, the only fair solution is a fee per mile basis.

It is not the only fair solution. What would be at least as fair, would be to do away with the entire notion that roads need to be funded by user fees, and instead, fund them out of the general budget.

 

[cornbinder89]

It is not the only fair solution. What would be at least as fair, would be to do away with the entire notion that roads need to be funded by user fees, and instead, fund them out of the general budget.

Truckers would love that!
I have nothing against per mile funding, but the devil is in the details, and how the miles are assessed is what worries me.

 

[MikeinPA]

You need to get out and about more.

You need to see where I live!

 

[Drew21]

It is not the only fair solution. What would be at least as fair, would be to do away with the entire notion that roads need to be funded by user fees, and instead, fund them out of the general budget.

This would require way more taxes to build a functional (i.e., non-deficit) general budget.

In many parts of Europe, tax rates are much higher than they are in the US, and that money is used to pay for public-use infrastructure such as roads, public transportation, education, equitable health care systems, etc. That seems pretty good to me, but is derisively referred to as socialism by many.

I figure that you pay one way or another. We could all pay more in taxes to fix the horrible roads where I (and probably you) live. Alternatively, each road user can regularly replace damaged tires, wheels, and suspension components out of their own pocket. One of those seems more efficient and relaxing than the other to me.

Wait, there's a third option I always forget about: the mysterious and mythologized "trickle-down economy."
1) Give all the money to Bezos, Gates, Musk, Zuckerburg, et al.
2) Visit upon them a series of ghosts from their past, present, and future urging them to use most of the money (e.g., the >90% left over after they each have six houses, three private jets, two mega-yachts, and three secret mistresses) to benefit society.
3) (Evocative hand waving.)
4) Smooth roads.

 

[Dooglas]

But, after some other thoughts, I realize I drive almost entirely on local roads that are paid for by local government--which I already pay handsomely through property and wage taxes....

I know nothing about how gasoline taxes are shared in Pennsylvania, but I do know how they are shared in Oregon. The federal gas tax (Federal Highway Trust Fund) is proportionally shared among the states. The state gas tax likewise goes into a state highway fund. The State Highway Department then allocates the fund for repairs of Interstate Highway repairs/renovation within the state and for state highway and bridge repairs/renovation. A portion of the repair funds does go to local governments - cities and counties. The local share is used for repair of local roads. So around here, local road maintenance definitely is assisted with state and federal gas tax funds.

 

[bmuckley]

If you live in a state that still has required inspections, the milage could be taken at that time. Or at point of sale/re-registration. The issue is as it stands now, if you don't drive a lot of miles it is still worth buying a gas car, if you still buy cars under 30k. My cars usually cost me 27-29k new and I get a new one every 20-30 years. Now when I drove 300k miles in that timeframe an ev would make sense but now that I drive 4k miles a year, which isn't even enough for an oil change. It doesn't make a lot of sense. But back to subject at hand. Maryland could definitely do it a inspection time, especially since it is state run inspection stations.

 

[MikeinPA]

I know nothing about how gasoline taxes are shared in Pennsylvania, but I do know how they are shared in Oregon. The federal gas tax (Federal Highway Trust Fund) is proportionally shared among the states. The state gas tax likewise goes into a state highway fund. The State Highway Department then allocates the fund for repairs of Interstate Highway repairs/renovation within the state and for state highway and bridge repairs/renovation. A portion of the repair funds does go to local governments - cities and counties. The local share is used for repair of local roads. So around here, local road maintenance definitely is assisted with state and federal gas tax funds.

Pennsylvania joins the club. $200/ year first year, going up after that. https://electrificationcoalition.org/pennsylvania-passes-annual-tax-on-electric-vehicles/

Edit: For me, this works out to an ICE equivalent tax of $1.50/gallon, based on my miles per year, number of EVs and 30 mpg ICE. Pennsylvania's has one of the highest fuel taxes in the USA at $0.56/gallon.

 

[Burt]

They won’t change it to a fairer system until EV owners are no longer a small minority or they wake up and realize it is keeping less than wealthy people from buying EVs.

 

[MikeinPA]

I know nothing about how gasoline taxes are shared in Pennsylvania, but I do know how they are shared in Oregon. The federal gas tax (Federal Highway Trust Fund) is proportionally shared among the states. The state gas tax likewise goes into a state highway fund. The State Highway Department then allocates the fund for repairs of Interstate Highway repairs/renovation within the state and for state highway and bridge repairs/renovation. A portion of the repair funds does go to local governments - cities and counties. The local share is used for repair of local roads. So around here, local road maintenance definitely is assisted with state and federal gas tax funds.

You are correct! Half of PA's "Liquid Fuels Funds" (gas tax) is distributed to municipalities based on population and road miles. https://gis.penndot.gov/BPR_PDF_FILES/Documents/LTAP/TechSheets/TechSheet_170color.pdf