Proposed federal yearly fee for Hybrids

[Prickly Pear]

I see several news outlets stating that the new proposed budget passed by the house includes " a provision for the Federal Highway Administration to impose a $250 annual fee on all-electric vehicles and a $100 yearly fee for hybrid vehicles. "
Any idea how that would work? When I register here in washington, I thought all of the fees I pay are determined by and go to the state. No federal portion that I know about. Are there any current federal fees we all are paying when we register a car? Our legislature just upped the fee for the "privilege" of owning a hybrid. I'm guessing a federal fee would be added to whatever the state wants to squeeze out of us?

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[TwuckHappens]

I think you're assuming it's more thought out than it is. It's designed to recoup the 18.4 cents federal gas tax but the math doesn't really math...

Edit: this site says that it expects the states to collect on behalf of of the federal government
https://insideevs.com/news/758215/federal-tax-ev-registration-250

 

[stevj]

Likely collected when you renew your license tabs.

Steve

 

[MetalThunder]

If your wearing out the roads and skipping out on the funding for their repair by skipping the gas station - well party is over .... And I think it is fair proposision ....

What is the Highway Trust Fund, and how is it financed? | Tax Policy Center

No Free Rides
well maybe one


Cheers

 

[RDRahn]

Or this for a real "Free Ride"

 

[Hanzzolo]

In Canada we pay this tax on fuel. They recently introduced a yearly fee for EV’s as they weren’t paying it. Hybrids just use less fuel so we pay less.

 

[25XLT]

My state already charges a $75 annual fee on vehicle registration for hybrid cars, so this proposed $100 would be on top of this. I drive 4K a year so I would be paying much more than an ICE Maverick Would for gas tax For the same mileage. Another cash grab by the administration.

 

[Probity]

Got to provide revenue for the Highway Trust Fund. Seems very reasonable to me that since EV’s contribute $0.00 via the 18.4 cent/gallon federal gasoline tax, they should pony-up. And as EV’s are generally a fair bit heavier than ICE or hybrids (more wear & tear on highways), an annual fee is all the more appropriate. I was a little surprised when I read that “already, 37 states collect annual EV fees ranging from $50 to $250 a year. The average is about $142, according to Atlas Public Policy. Some other states collect fees at public charging stations.” So not exactly breaking new ground here.

On hybrids, it is a stretch for me to rationalize a "special" fee in addition to the federal gasoline tax (although current $0.184/US gal fed tax is WAY too low). Hybrids do use petrol, just less of it. Seems a little punitive to me but overall, I’m in favor of funding the Highway Trust Fund. I’m retired from almost 40 years with an energy (oil & gas) company, and politically probably slightly to the right of Atilla the Hun, but I’ve always felt federal gasoline taxes should be far higher than they currently are. We all want good interstates and you have to pay for maintenance & repairs somehow.

 

[RR - All the way]

If your wearing out the roads and skipping out on the funding for their repair by skipping the gas station - well party is over .... And I think it is fair proposision ....

What is the Highway Trust Fund, and how is it financed? | Tax Policy Center

No Free Rides
well maybe one


Cheers

I think it is fair IF the basis is to recover funds for highway maintenance. Unfortunately, there are politicians in both parties who seem overly responsive to big oil and this could also just be another strike against EVs or a vehicle that is using less fossil fuel. We have seen many of these lately like removal of incentives.

 

[MetalThunder]

My state already charges a $75 annual fee on vehicle registration for hybrid cars, so this proposed $100 would be on top of this. I drive 4K a year so I would be paying much more than an ICE Maverick Would for gas tax For the same mileage. Another cash grab by the administration.

State Roads - County Roads - Federal Highways - are separate entities

Cheers

 

[MetalThunder]

in Commifornia we already pay around $1 per gal on taxes!

I believe you will see a pattern with them high gas tax states .... just saying

Cheers

 

[OB1e]

Jack up the price of gas and tolls. Charging ev/hybrid drivers more is unfair practice. I work from home, and barely go anywhere. Charge me extra for not using the terrible roads in Massachusetts? Haha not happening.

 

[inline_five]

I think it's fair hybrid owners pay their fair share of taxes but I just did the math, at 25 mpg I would've paid $43 in tax to the Feds over my 6000 miles, and instead I paid $28, a difference of $14.

Yet I would've been on the hook for $200 in additional taxes had this plan been in place when I bought in 2023.

Total bullcrap.

It looks like this is done via state registration so maybe people just won't renew their cars. Here in NC it seems most people don't even bother tbh.

 

[MetalThunder]

I can understand anyone not driving much being po'd - but I'm noy asking to get tracked and pay by mile either - - BUT - Here on this forum we see screen shot after screen shot of Hybrid Owners cruising miles getting high 40's - 60 + mpg - If 200 dollars is going to upset that group I'm puzzled , They should support this .... lol 800 mile clubbers ???

Cheers

 

[1929]

If your wearing out the roads and skipping out on the funding for their repair by skipping the gas station - well party is over .... And I think it is fair proposision ....

What is the Highway Trust Fund, and how is it financed? | Tax Policy Center

No Free Rides
well maybe one


Cheers

It's horrible, terrible, stupid tax.
It's not based on usage. Drive 10 miles or 100,000 miles, same $100 tax.
It's not based on miles per gallon. 24 mpg Tundra Hybrid pays the tax. 40 mpg gas Civic does not.
It's not based on fuel efficiency difference between hybrid and ICE of the same model.

It's just an ill advised attack on fuel efficiency. As said earlier, it does not math.

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