Iowa to begin electric vehicle taxes and charging fees

[Iowa2]

I can understand states needing to create some type of fee structure for electric vehicles since the current state of fees relies on collecting gas taxes. But it seems Iowa is piling on both sides. Beginning Jan 1 2020 and increasing each year in three stages fees for BEVs are $65.00 (2020), $97.50 (2021), and $130.00 (2022 and later). Additionally they are adding a charging fee starting July 1, 2023 of $0.026 per kilowatt hour for non home charging.

In my case they will be collecting more from me than if I drove an ICE vehicle since I only go about 20,000 miles per year between both of my cars (S and Roadster). The also have a registration fee that is based on the value of the car (based on the state of Iowa formula) which already is significant (a 2008 Roadster and a 2017 S total yearly registration fee is well over $1300.00 for me).

I am not complaining about having fees but it seems these are quite excessive.

I would be interested in hearing how other states compare.

 

[TheTalkingMule]

Iowa politics(I assume) pushes tax burden toward anything competing with corn. EVs displace the source of most ethanol demand.

Most people seem fine with adding an EV tax to level the playing field for folks who pay gasoline taxes. To me, passenger vehicles cause nearly zero road damage so it's as arbitrary as taxing fish tank owners to fix roads.

 

[dabbler]

Ohio is charging $200 for BEV and less for PHEV as of 2020. 2019 registration fee was $65 for all cars. Not sure I understand about the "non-home" charging fee. If you use a public charger you are charged an additional $.026 per kilowatt hour?

 

[Iowa2]

Ohio is charging $200 for BEV and less for PHEV as of 2020. 2019 registration fee was $65 for all cars. Not sure I understand about the "non-home" charging fee. If you use a public charger you are charged an additional $.026 per kilowatt hour?

Yes that is correct. It appears at home charging does not get the additional fee. I am guessing it is because it would be a nightmare for the power company to separate the charging usage from other home usage. Stand alone chargers are obviously for charging vehicles which would be easier to tax directly.

 

[Iowa2]

Iowa politics(I assume) pushes tax burden toward anything competing with corn. EVs displace the source of most ethanol demand.

Most people seem fine with adding an EV tax to level the playing field for folks who pay gasoline taxes. To me, passenger vehicles cause nearly zero road damage so it's as arbitrary as taxing fish tank owners to fix roads.

I may or may not agree with your damage assessment but time alone deteriorates roads and the money to repair and/or build needs to come from someplace - in my opinion the people/equipment that use it.

 

[SSedan]

Iowa politics(I assume) pushes tax burden toward anything competing with corn. EVs displace the source of most ethanol demand.

Most people seem fine with adding an EV tax to level the playing field for folks who pay gasoline taxes. To me, passenger vehicles cause nearly zero road damage so it's as arbitrary as taxing fish tank owners to fix roads.

And your "justification" for why you shouldn't pay for the roads you use is why some ICE driver's have a problem with EV driver's.
There are a lot of roads trucks don't use much, and cars cause more congestion and need for more lanes. So even if your belief that cars don't cause any damage was true cars still cause road costs.

 

[ItsNotAboutTheMoney]

Yes that is correct. It appears at home charging does not get the additional fee. I am guessing it is because it would be a nightmare for the power company to separate the charging usage from other home usage. Stand alone chargers are obviously for charging vehicles which would be easier to tax directly.

The other reason for wanting to tax public charger use is that it's more likely to be used by out-of-staters coming to see the flatness.

It's sad to me. It seems that states are trying to wish EVs away instead of realizing that gasoline taxes suck as a way to calculate road usage costs and trying to come up with a better system.

 

[dgpcolorado]

Those fees do seem excessive to me.

For many years we in Colorado have had an extra plug-in car registration fee of $50 a year. The money goes to roads, $30, and a charge station grant fund, $20. The latter is used to 80% subsidize charge stations installed for EV use and has led to a robust network of Level 2 public charge stations around the state. The grants can also be used by apartment/condo complexes for resident charging, although I'm not aware of any in my remote rural area.

One other big difference between the Colorado fee and other states is that for many years Colorado has had one of the most generous state tax credits (refundable, unlike the federal one) in the country. While the tax credit is gradually phasing out now, this state has been serious about supporting EVs, so I don't have a problem with a modest $50 plug-in car extra registration fee.

 

[tjkessler]

That sounds pretty reasonable. No charge for home charging. The per kwh charge seems to be maybe a 10% surcharge on the supercharger rate.

 

[drtimhill]

I'm fine with paying a road-tax fee for my EV, provided they add a tax to ICE cars for pollution, smog and CO2 emissions.

 

[SSedan]

If you own an EV today you are likely in solid financial position and honestly likely to be of the belief the "rich" should pay more in taxes. Well I have news for you a lot of folks consider you rich.

Households below median are buying sub-$10k cars that are cheap to repair, not EVs.

So when you make statements like tax all the ICE driver's most of those folks will be making less than you.........

 

[DSolie]

WA State has an annual EV registration (yes, we have to re-register annually in WA) of $150 in addition to our normal registration fees of around $40-70 (unless you live in the RTA Zone.. which can add $400 to it). There are no pass-thru fees or taxes on electric charging stations, but I can see that being a thing as EV's gain popularity. Thankfully I have FUSC.

WA is looking at a pay-by-mile tax to offset the loss of gas tax (which is currently almost $0.50/gal). That may be a decent proposal IF they greatly reduce or eliminate the gas tax for ICE, and don't force a device install on the vehicle. Our current Governor looks to tax everything to offset his inability to control his own .gov spending and promises.

 

[drtimhill]

If you own an EV today you are likely in solid financial position and honestly likely to be of the belief the "rich" should pay more in taxes. Well I have news for you a lot of folks consider you rich.

Households below median are buying sub-$10k cars that are cheap to repair, not EVs.

So when you make statements like tax all the ICE driver's most of those folks will be making less than you.........

I agree, which is why progressive taxes (income) are to be preferred to use taxes (sales), since the latter make no allowance for inequality of income. When I was growing up in the UK years ago it was standard to refer to the US as "the land of low taxes", but its pretty much caught up now, with essentially everything taxed that the politicians can get away with. And most of those are use-taxes (apart from income and property tax).

And in fact I'm sure you're "the EV guys can afford it" argument was the excuse used in passing the tax, but you can be sure that if EVs get cheap and everyone buys them they won't go "oh, we need to adjust that as so many lower income people are buying EVs".

 

[SSedan]

I agree, which is why progressive taxes (income) are to be preferred to use taxes (sales), since the latter make no allowance for inequality of income. When I was growing up in the UK years ago it was standard to refer to the US as "the land of low taxes", but its pretty much caught up now, with essentially everything taxed that the politicians can get away with. And most of those are use-taxes (apart from income and property tax).

And in fact I'm sure you're "the EV guys can afford it" argument was the excuse used in passing the tax, but you can be sure that if EVs get cheap and everyone buys them they won't go "oh, we need to adjust that as so many lower income people are buying EVs".

Your last sentence is off base because the raised registration is not " an additional tax the EV guys can afford" but rather a loophole being closed in an imprecise manner. A loophole primarily enjoyed by the "rich".

I say "rich" a bit tongue in cheek, I am certainly not alone here being middle class, but I assure you plenty of folks see us as "rich". Just looked up median household income 2018 looks to be latest published at just shy of $62k, remember median means half are making less.
$100k for instance isn't rich but I would bet most model 3 or used model S households are there and that is well above median and certainly some folks will consider you rich.

 

[dgpcolorado]

Your last sentence is off base because the raised registration is not " an additional tax the EV guys can afford" but rather a loophole being closed in an imprecise manner. A loophole primarily enjoyed by the "rich".

I say "rich" a bit tongue in cheek, I am certainly not alone here being middle class, but I assure you plenty of folks see us as "rich". Just looked up median household income 2018 looks to be latest published at just shy of $62k, remember median means half are making less.
$100k for instance isn't rich but I would bet most model 3 or used model S households are there and that is well above median and certainly some folks will consider you rich.

Yes, the assumption may be that EV owners are rich because that is the image of Tesla: very expensive cars for the rich. However, one can easily buy a lightly used LEAF for $7k — does someone have to be "rich" to afford that? I bought my Model S used because I couldn't afford a new one and my income is a tiny fraction of that median you mention.

Nevertheless, I don't have a problem with EV owners paying for roads, so long as the payment regimen and amount is reasonable. In my state I think it is a bit on the low side. For the OP in Iowa, I think it is a bit high in the out years. A mileage and weight based tax on all vehicles strikes me as fairer than the current hodge-podge of road funding taxes/fees. However, "EV owners should pay nothing because we're not polluting as much as the ICE vehicles", as some suggest? No, I think we should pay our way like every other road user. Pollution is a separate issue IMO.

 

[iPlug]

Not for a new Tesla (yet), in part due to no Federal credits remaining. But other new BEVs such as the Leaf can be had for far under mean new car purchase price after government and manufacturer incentives.

 

[AMPd]

Ohio is charging $200 for BEV and less for PHEV as of 2020. 2019 registration fee was $65 for all cars. Not sure I understand about the "non-home" charging fee. If you use a public charger you are charged an additional $.026 per kilowatt hour?

65 dollars? wow
In California my recent renewal was in the 700 range

 

[ItsNotAboutTheMoney]

65 dollars? wow
In California my recent renewal was in the 700 range

That includes a vehicle property tax.
Actual registration is much lower than that.

 

[rhumbliner]

Wyoming tacks on an additional $200 annual EV fee.

An interesting read here: EV Owners In Mountain West Hit With 'Punitive' Fees, Study Finds

...time alone deteriorates roads...

If that were true there would be no weigh stations along our highways.

 

[drtimhill]

Your last sentence is off base because the raised registration is not " an additional tax the EV guys can afford" but rather a loophole being closed in an imprecise manner. A loophole primarily enjoyed by the "rich".

I say "rich" a bit tongue in cheek, I am certainly not alone here being middle class, but I assure you plenty of folks see us as "rich". Just looked up median household income 2018 looks to be latest published at just shy of $62k, remember median means half are making less.
$100k for instance isn't rich but I would bet most model 3 or used model S households are there and that is well above median and certainly some folks will consider you rich.

My point wasn't about the profile of the buyers per se (and I agree with your assessment), but about the fact that an "excuse" for a tax being passed is never re-examined when that excuse ceases to be valid. I'm still paying a tax on my phone bill to offset the cost of the Civil War.