New gas tax will now charge, at time of plate renewals, a tax on EV in the amount of $150 a year and subject to at least a 1 percent raise per year. Indiana really does not care for Electric Vehicles. Hybrid car tax is $50. They say the average gas drivers will pay roughly $63. The tax will be 10 cents per gallon to improve roads. They must think EV’s owners should be buying 1500 gallons of gas or own cars that only get 10 mpgs !
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BozieBeMe2
May I have this dance?
An average EV does not weigh enough to cause road deterioration. Trucks cause road damages but, facts are not the issue here.
The ability to raise funds is the real objective. Especially, as you have noted, the ratio of tax collected on a EV, versus the amount collected on a gallon of gas, is very heavy handed.
Indiana, The Land of Taxes ( and not much to show for it
Not adequately caffeinated yet but aren't your calculations based solely on the dime raise rather than the actual total tax?
Looks like gas tax went from $.18 to $.28 last year and will go up a penny a year till 2024.
You divide $150 by $.28 and you get 535gallons multiply that by 25mpg and get 13,400miles a year.
So it seems to me they a re asking EV owners to pay road tax on roughly 13k miles worth of use which is reasonable.
Far as road damage, how about expansion for congenstion. People here want to say only trucks beat up roads but if only trucks we need fewer lanes and a whole host of other reasons why cars should help pay for roads too.
Move one state over. Say to Chicago, Illinois. That will show them. I hear their taxes are really low.
Will be $0.28/gal state plus $0.184/gal Federal.
Total $0.464/gal.
$150 ~ 323.28 gallons
$50 ~ 107.76 gallons
30mpg x 323.28gal = 9698.28miles
Now let's do some hybrid difference math:
(1/35mpg - 1/50mpg) = 1/75 gpm
$50/$0.464/gal/(1/35mpg - 1/50mpg) = 12571.84 miles
$50/$0.464/gal/(1/30mpg - 1/45mpg) = 9698.28miles
It's a continuation of the now-usual dumbness. If one group pays based on (fuel economy, miles traveled) and another pays based on a fixed fee or fixed supplement, something's broken.
Nobody has bothered to ask the simple question: Given that fuel consumption does not directly correlate to the impact of a vehicle on road construction and maintenance costs, for what is it acting as a proxy? Answer that question and it tells you how to match the system for other vehicles.
The politicians fail to recognize or simply don't care about the actual effects of plug-ins and hybrids on fuel consumption and the trends in electrification:
- PHEVs in particular have a disproportionate impact on fuel consumption in heavier traffic.
- PEVs ranges are increasing
- BEVs are going from short range to long-range
- Per mile driving costs are lower
- The price of electrification is decreasing
The effects and trends point to more electric miles per PEV, self-selection of higher-mileage drivers and the possibility of a catastrophic (in the mathematical sense) increase in electrified miles. They haven't fixed the pricing problem. Surprise, surprise.
What's really needed is a ground-up review of the source of road costs, from which they can calculate an ideal pricing formula, from which they can _then_ come up with a simplified system that won't cause hand-wringing and self-made funding crises.
Total $0.464/gal.
$150 ~ 323.28 gallons
$50 ~ 107.76 gallons
30mpg x 323.28gal = 9698.28miles
Now let's do some hybrid difference math:
(1/35mpg - 1/50mpg) = 1/75 gpm
$50/$0.464/gal/(1/35mpg - 1/50mpg) = 12571.84 miles
$50/$0.464/gal/(1/30mpg - 1/45mpg) = 9698.28miles
It's a continuation of the now-usual dumbness. If one group pays based on (fuel economy, miles traveled) and another pays based on a fixed fee or fixed supplement, something's broken.
Nobody has bothered to ask the simple question: Given that fuel consumption does not directly correlate to the impact of a vehicle on road construction and maintenance costs, for what is it acting as a proxy? Answer that question and it tells you how to match the system for other vehicles.
The politicians fail to recognize or simply don't care about the actual effects of plug-ins and hybrids on fuel consumption and the trends in electrification:
- PHEVs in particular have a disproportionate impact on fuel consumption in heavier traffic.
- PEVs ranges are increasing
- BEVs are going from short range to long-range
- Per mile driving costs are lower
- The price of electrification is decreasing
The effects and trends point to more electric miles per PEV, self-selection of higher-mileage drivers and the possibility of a catastrophic (in the mathematical sense) increase in electrified miles. They haven't fixed the pricing problem. Surprise, surprise.
What's really needed is a ground-up review of the source of road costs, from which they can calculate an ideal pricing formula, from which they can _then_ come up with a simplified system that won't cause hand-wringing and self-made funding crises.
Issue with actually taxing milage is the amount the government will spend to find out your milage. Government does basically nothing well.
Semis get bad milage, pickups pulling trailers get bad mileage, gas tax is somewhat promotional to road use, luxury ICE get poor mileage so taxing the rich is good right?
As I said the fixation on semis is unwarranted, yes they do more damage, but we are all also buying the products they move, jacking taxes on them penalizes who?
Doesn't taxing gas encourage less recreational driving and reduce congestion?
Semis get bad milage, pickups pulling trailers get bad mileage, gas tax is somewhat promotional to road use, luxury ICE get poor mileage so taxing the rich is good right?
As I said the fixation on semis is unwarranted, yes they do more damage, but we are all also buying the products they move, jacking taxes on them penalizes who?
Doesn't taxing gas encourage less recreational driving and reduce congestion?
BozieBeMe2
May I have this dance?
As you can see from these posts, taxing EV's is not as straightforward and fair as they would have you believe. In my case, I only average 7,000 on our EV, but I will be taxed as if it were 12,000 miles of use (give or take) . The only recourse is to give up some privacy and account for my average electrical consumption for the car. This would entail using a form of net metering, both at home and dragging Tesla into it, via, Super Charge use. One thing you can be sure of, the powers that control taxation, will come up with something because, they won't let the loss of taxation go uncontrolled.
Well maybe it’s time to pick up a dodge hellcat red eye or the demon
Oregon is rolling out a similar $110 per year fee for EVs as well. I'm actually OK with it. While they don't damage the road on a per mile basis, there's still the fixed costs (lighting, signals, signage and so forth). So I have no problem paying for my fair share. Now what I would really like to see is a large tax on studded tires. Those suckers cause a lot of damage! Stud-less winter tires should not be to encourage people to use them instead.
Lasairfion
Member
You're still using the road, which requires upkeep: at least the funds actually go towards road upkeep. The vehicle licensing tax here isn't necessarily spent on anything to do with roads, it's just another tax.
Annual rates depend on fuel type with Petrol or Diesel cars at £140 a year, electric at £0 a year and alternative fuels at £130 a year.
But don't think you've escaped with your shiny EV.
Annual tax additions accrue for any car with a list price of more than £40,000. You have to pay the following for 5 years (on top of regular vehicle tax): £450 for Petrol or Diesel, £310 for Electric, £440 for alternative fuels.
There is a separate First Year tax which is in the below link, which accrues a chunk of change for new non-electric vehicles.
Vehicle tax rates
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Aside: Just be glad you don't have Television Tax!
Official TV Licensing website - Home
Annual rates depend on fuel type with Petrol or Diesel cars at £140 a year, electric at £0 a year and alternative fuels at £130 a year.
But don't think you've escaped with your shiny EV.
Annual tax additions accrue for any car with a list price of more than £40,000. You have to pay the following for 5 years (on top of regular vehicle tax): £450 for Petrol or Diesel, £310 for Electric, £440 for alternative fuels.
There is a separate First Year tax which is in the below link, which accrues a chunk of change for new non-electric vehicles.
Vehicle tax rates
---
Aside: Just be glad you don't have Television Tax!
Official TV Licensing website - Home
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