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AZ: Proposed new taxes on electric vehicles

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TMBURNSY

3/22 MX LR 6 Seats - ED Dec-Mar 2023
Apr 19, 2019
15
4
Naples, FL
Arizona gasoline tax would double under bill advancing in House

The proposed new taxes on electric vehicles drew opposition from Tesla.

Lobbyist Meghaen Dell’Artino said she believes the formula for the levy, based on electricity used, would have Tesla owners pay more than the owners of gasoline-powered vehicles.


Arizona would double its gas tax to pay for road repair under bill at Legislature

House Bill 2899 passed the House Transportation Committee Wednesday with a 6-0 vote, with three Republican members absent.

The bill also would add an annual tax for registering an electric car of $111 next year, $139 in 2022 and $166 in 2023. No such tax exists today.

Hybrid vehicles would see a new tax of $45 a year rising to $67 in 2023 under the bill.

All the taxes listed in the bill would increase with inflation each year after 2023.
 
Say an average ICE car puts on 10,000 miles per year at 20 mpg - that means it will consume 500 gallons of gasoline.
0.36 cents per gallon would be $180 per year for an ICE of those specs.

The EV tax seems fair in comparison.

There should be some credit though for lessening the need for oil disposal, brake pads, cleaner air, etc.

All in all, there are too few EVs on the road in AZ to make a difference in revenue (I think ).

Phase in the EV tax slower, I'd recommend.
 
The Governor has consistently opposed any tax increases and has opposed this type of tax increase in the past. He certainly should veto this measure if it passes. Of course with any politician, nothing is a sure thing — other than pandering to their base.
 
We enacted SB1 three years ago, and CalTrans is everywhere these days. I forget how much our gasoline tax increased, but it was quite a bit. It has been very contentious here. Many people think that a lot of the tax revenue is going to non-highway use. They exaggerate the dollars that are diverted to the highly unpopular bullet train to and from nowhere and other public transit projects. Off the top of my head, at least 3/4 of the tax collected goes to roads and highways.

Many of the projects are unseen by most as they are in the more remote areas of the state, or they are local projects within cities. In addition, some projects are completing deferred maintenance that has languished for decades. Culverts, bridge buttressing, shoulders, striping, and other projects just don't seem to have the same cachet as improving congestion or smoothing out freeway lanes.

But our roads are getting better. There ain't no free lunch, and a lot of folks don't like paying more at the pump because they would rather spend their money on themselves instead of on the greater good.
 
I am curious if that will be included with the 2024 ballot for that half cent tax extension? Looking at the 2040 plan, nearly every valley freeway is going to be expanded. You would figure the rubberized black top would be reinstalled properly then. In the meantime, they should be doing timely spot repairs IMO.