States Consider Taxing Electric Vehicle Owners

Some states may decide to start taxing electric vehicle owners in an effort to regain lost revenue at the pump.

May 14, 2013

NEW YORK – Until now, electric vehicle owners have been immune from paying taxes at the pump, revenue that largely pays for public infrastructure. That’s about to change, Wired reports.

Washington state is assessing a $100 annual tax for residents driving certain electric vehicles (EVs), an effort to recoup some of the money lost to those who drive zero-emission vehicles. While the typical resident pays roughly $182 per year in state gas taxes, the EV owner is still better off, an imbalance that some are trying to address. 

"EV drivers want to pay their fair share," said Jay Friedland, legislative director of Plug-In America. "We want the roads to be supported, but we're still in a phase of early adoption and there's a greater public good."

The advocacy group said a flat road tax is more equitable — taxing all drivers equally, regardless of how it is powered. It’s an idea that is gaining momentum. 

New Jersey state Sen. James Whelan has proposed a road tax that charges all drivers 0.00839 cents per mile driven, or roughly $100 for those who travel 12,000 per year. The idea is for the state to collect revenue from EV drivers without singling them out.

Virginia’s House Bill 2313 is also seeking revenue from EV drivers. The bill seeks to eliminate the $0.175/gallon tax in favor of a tax of 3.5% for gasoline and 6% for diesel fuel, and a $64 per year tax for EV, hybrids and alternate fuel vehicles. 

In addition to promoting a flat road tax, Plug-In America argues for a tax that is based on vehicle miles traveled plus a vehicle’s weight, and that incentives should be enacted to motivate EV adoption. 

"Washington state is the shining non-beacon," Friedland said. Meanwhile, Arizona, Michigan, Oregon and Texas, are proposing similar legislation.

"Everyone's looking for money from anywhere right now," Friedland said, "but there's a difference between a revenue source and a political straw man."

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