Proposed federal yearly fee for Hybrids

[The Real Maverick]

This seems entirely too logical for the government to use.

That's probably the biggest hurdle!

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[riparian]

Tax Tires!

This is so easy. Tax Tires.

Fair for everyone. At least standardized.

Tax a 40,000 mile tire $400.
Tax a 70,000 mile tire $700.

Governments will love the pay in advance model. Trucks with more weight have more tires so naturally pay more.

This gets the fuel type, or lack of fuel out of the equation.

This is a tax per mile model WITHOUT big brother watching your every move. An no reporting or tracking.

If you have tire damage early on, you get a pro-rated tax on the next set. Easy.

So someone who buys a new vehicle every two or three years (as some do) and never has to replace tires would avoid paying federal highway taxes altogether? I guess subsequent owners would end up subsidizing the previous owners' mileage when it came tome to buy new tires Or would the tire tax be added to the cost of new vehicles?

In any case, I wonder how most people would feel about a relatively large lump sum outlay as opposed to more incremental payments collected when you buy gas plus (maybe) an annual fee?

 

[The Real Maverick]

So someone who buys a new vehicle every two or three years (as some do) and never has to replace tires would avoid paying federal highway taxes altogether? I guess subsequent owners would end up subsidizing the previous owners' mileage when it came tome to buy new tires Or would the tire tax be added to the cost of new vehicles?

In any case, I wonder how most people would feel about a relatively large lump sum outlay as opposed to more incremental payments collected when you buy gas plus (maybe) an annual fee?

You're over thinking this.
Every tire sold gets taxed based on the tread life number already on tires.
Even the ones Ford buys and puts on in the factory. Those few hundred bucks get added to MSRP, invisible, but there.

 

[HeyBales]

Gas tax is mileage tax . the more you use the more tax you pay .
It's interesting that the more efficient you are the more you pay. (Example) my city pushed water efficiency for years but raised the rates because customers weren't using enough .

Exactly the example I was going to use.
Water company has minimum usage you'll be charged based somewhat on neighborhood averages.
So me getting good at cutting water doesn't actually help. I may have helped lower the avg, but not really if others aren't.

Instead of hitting up builders of new neighborhoods - I don't know if they pay to have the systems brought into the neighborhoods - but they aren't required to make a big payment into the system for the big improvement in capacity required. That's spread amongst everyone.

 

[riparian]

You're over thinking this.
Every tire sold gets taxed based on the tread life number already on tires.
Even the ones Ford buys and puts on in the factory. Those few hundred bucks get added to MSRP, invisible, but there.

I'm sure you're right. Wouldn't want to (over) think things through.

Personally, I'd prefer not to give my money to the government up front for mileage I might rack up over the next few years, and I don't consider a few hundred dollars added to the cost of a new vehicle or a new set of tires (which would be in addition to all the other factors exerting upward pressure on the prices for both) "invisible", but no doubt that's wrong-headed of me.

 

[NextTruck]

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.

But we are burning up! Small price to pay though to fight global warming, no?

 

[NextTruck]

Right on!!!

But wait, I thought there was a proposal to raise the highest tax rate??

 

[pigsareus]

You pay YOUR state tax and I will pay mine. We do not need to complicate things more we need to simplify it. As soon as someone uses the word 'equity" it is a no for me. Sorry personal principles support equal opportunity not equity. You want to ADD book keeping and tax collecting to tire stores and expect them to NOT charge you more for it? Also the federal government and the states, and in some areas local governments will NEVER repeal the gas tax. Pipe dream. Your system creates a huge bureaucracy just to avoid a 100/year fee. Sounds like a government idea not a logical idea. BTW I did not at anytime call you a name and I would expect the same courtesy.

exactly - there is nothing simple about using a tire tax - if they eventually went the route of charging by the mile (and you're right it would be the existing taxes we pay on fuel + this overage) then an annual odometer reading would give the precise number.

 

[Pigeonman]

But we are burning up! Small price to pay though to fight global warming, no?

My wife says, "Don't say global warming, say climate change." I guess this might include the increase in flooding, forest fires, tornados, hurricanes, and G-D knows what else!!!!

 

[The Real Maverick]

exactly - there is nothing simple about using a tire tax - if they eventually went the route of charging by the mile (and you're right it would be the existing taxes we pay on fuel + this overage) then an annual odometer reading would give the precise number.

No one wants to do that.
No one is going to do that.
No one wants GPS tracking or manual miles reporting. Not really reliable (easy to cheat) and not anonymous.

Taxing tires across the board based on manufacturer tread life is anonymous and difficult to cheat. Like the "redemption value" on cans and bottles, it will be automatic, unavoidable, and equal to all. You can debate how much is "fair" to pay, but the process itself is inherently fair.

10% of drivers are not buying gas or diesel. One day that will be 50%. Some day after we're gone, that will be 90%.

Gas tax is going away, either by choice, or by attrition. The need for roads isn't.

 

[Jah.]

Glad I have an ecoboost .

 

[The Real Maverick]

Glad I have an ecoboost .

I'm glad you like it.
At some future date, your tires will be road taxed the same as mine.

 

[The Real Maverick]

They already are. But keep beating that dead horse and it might win the Derby yet.

Road taxes. Every reader (but one) understood the context.

 

[grumpyunk]

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.

20% is directed to Mass transit and cleaning up leaking fuel tanks.
Is that a proper use? Doesn't mass transit use fuel and pay into the Trust fund? Are there other re-directions of the revenue?

 

[ekusafetyman]

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?

Last year I received a notice from KY that my 2018 Honda Accord Hybrid now requires an extra $28 on the registration fee because it is a hybrid. I paid the $28 and I assume it will be on my registration from now on.

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