Arkansas Considers EV Tax for "Fairness"

[alderct]

Arkansas roads agency looks at fee levy for electric, hybrid vehicles

From today's Democrat-Gazette, the increased fee would make up for fuel taxes the state doesn't collect on those vehicles because, well, they don't use fuel:

"A lot of that is a policy issue and a fairness issue that we think needs to be set now before that sector really continues to grow so it is already in place because it's fair -- it really levels everything out," Bennett, the department director, told the Arkansas Highway Commission at a meeting to discuss legislative priorities earlier this month.

Under the preliminary proposal, registration fees also will go up for hybrid vehicles, which use regular gasoline but pay less in taxes because they get significantly improved mileage per gallon.

No bill has been filed yet, but preliminary estimates for the annual registration fee for electric vehicles would rise to $180 a year, according to one department official.​

Also of note, there are 333 EVs registered in Arkansas, according to the story.

 

[102owner]

I think it is sad that EV owners have "other fees" just because governments arent adjusting to the changing renewable landscape, but I guess its OK since when they do we will see things adjust back down right? LOL

 

[SageBrush]

Arkansas roads agency looks at fee levy for electric, hybrid vehicles

"A lot of that is a policy issue and a fairness issue ... ... because it's fair​

Another moron at the helm who cannot think himself out of a paper bag.

Here is what it comes down to: red states ideologically opposed to taxes are making themselves look stupid while they try to collect fees. A "fair" approach would be to assess road wear by vehicle and charge in proportion. Of course that would highlight the subsidy that heavy vehicles currently enjoy.​

 

[Lloyd]

Arkansas roads agency looks at fee levy for electric, hybrid vehicles

From today's Democrat-Gazette, the increased fee would make up for fuel taxes the state doesn't collect on those vehicles because, well, they don't use fuel:

"A lot of that is a policy issue and a fairness issue that we think needs to be set now before that sector really continues to grow so it is already in place because it's fair -- it really levels everything out," Bennett, the department director, told the Arkansas Highway Commission at a meeting to discuss legislative priorities earlier this month.

Under the preliminary proposal, registration fees also will go up for hybrid vehicles, which use regular gasoline but pay less in taxes because they get significantly improved mileage per gallon.

No bill has been filed yet, but preliminary estimates for the annual registration fee for electric vehicles would rise to $180 a year, according to one department official.​

Also of note, there are 333 EVs registered in Arkansas, according to the story.

I'll bet that is a LOT more than they collect from the average ICE car. CA found the equal figure to be $100 per year with much higher fuel and road taxes than Arkansas!

 

[Haxster]

A "fair" approach would be to assess road wear by vehicle and charge in proportion. Of course that would highlight the subsidy that heavy vehicles currently enjoy.​

I seem to remember, from an ancient engineering class, that road wear was approximately the CUBE of vehicle weight. So, vehicle-related wear is virtually all from heavy vehicles on highways. One qualitative observation is the often radical difference in smoothness between the right lane (where lots of truck spend their time) and the left lane.

Before putting all the blame on trucks, however, consider that our Teslas are nearly double the weight of many smaller ICE cars. Using the cube estimate, Teslas are nearly 8x the road abuse factor of Honda Civics.

 

[Zythryn]

If it were about being fair, they would charge by weight and miles traveled.
Charging EVs twice what ICE drivers pay is anything but fair.

 

[Haxster]

Gas taxes are a complicated issue. At least in the pre-Trump world, cars continued to get better mileage.and an increasing number of alternative energy vehicles (like Teslas) are spending less or no time at gas stations. Meanwhile roads in many states are deteriorating faster than they can be repaired or upgraded with fuel tax revenues. So, how to make up these shortfalls in a fair way? That's the challenge.

In the past, fuel taxes were sort of a "sin" tax for burning oil and wrecking our planet. And they seemed like a fair way to allocate tax burdens for roads. That's changing.

People think electric vehicles are clean energy. If you get your juice from your roof-top solar panels; yes. If you charge your battery from coal-fired electric plants; no. So, should you pay a "highway" tax in West Virginia but not in another state or city? And should you be taxed for wrecking the planet or supporting the roads? Time will tell...though in a few days, it's surely going to start a shift toward the later (at least at the national level).

 

[jsmay311]

I'll bet that is a LOT more than they collect from the average ICE car. CA found the equal figure to be $100 per year with much higher fuel and road taxes than Arkansas!

It's $0.215/gal in Arkansas. So if the average vehicle gets 25mpg, $100 would pay for 11,628 miles of driving per year. That lines up well with the average miles per year per vehicle.

 

[thx1139]

Funny Arkansas already ready to tax EV and Hybrid cars, but support for EV car owners is pitiful.

 

[N4HHE]

Either you believe government makes everything better with the levy of taxes, or you believe taxes makes everything worse and scarce.

 

[Drone Flyer]

And doesn't Arkansas not allow Teslas for direct sales?
Double standard if you ask me!

 

[jsmay311]

Either you believe government makes everything better with the levy of taxes, or you believe taxes makes everything worse and scarce.

Or you're a rational person and you believe neither of those things.

 

[bevguy]

The Tennessee governor has proposed a $100 fee for BEV based on the fact that they use roads but don't pay gasoline taxes
I don't think this is unfair. The tax would be dedicated to road repair and development just as the gasoline tax is. OTOH I would like to see the state spend some money to encourage BEV use. Maybe encouraging chargers faster than L2.
He also supports an increase in gasoline taxes and even bigger tax increase for diesel.
Fact is big trucks don't even come close to paying taxes proportionate to road damage. They have good lobbies and spread campaign funds around to bot parties.