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The long arm of the . . . Hybrid and EV road tax fees likely coming to you. [ADMIN WARNING: NO POLITICS]

bentley72

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In Ohio, you can renew your registration for up to 3 years and they don't charge you the Hybrid or EV fee if your plates are active and transferring them (actually it is part of a lawsuit in Ohio right now).

So I have had a CRV Hybrid and a Model 3 and I have yet to pay any fees, but that free ride is coming to an end this November if I keep the Model 3 (COME ON FORD!!).

In all seriousness - I think it's more than fair to ask EV, PHEV, and Hybrid drivers to pay their fair share, especially EVs.

What I would like to see though is an EV fee based on miles driven per year - the same exact way an ICE engine contributes to the state tax base for road maintenance. I guess in Ohio's case you would pay your tax every time you renewed your registration at let's say 75% of the miles driven (to account for some out of state miles).
When I got my tags last year they didn’t charge me the extra fee here in Ohio, and just mailed my renewal in that didn’t have the extra fee on it. Not sure if they don’t realize it’s a hybrid or not. Didn’t feel like correcting their mistake
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redskins5

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The only truely fair tax for automobiles would be to tax based on milage driven, If i drive a big pickup that takes 100 gallons of gas to go 1000 miles and someone else has a vehicle that uses 20 gals of gas to go the same 1000 miles we have both traveled 1000 miles worth of road putting the wear and tear on it but the second vehicle isn't having to pay the same as i did to travel that same 1000 miles. Just saying
 

RonR1959

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nice but I couldn't handle the annual hurricane warnings and evacs.
Florida is a huge state. Not everyone is affected by hurricanes every year. We’ve had our share up here in the panhandle, but we may go years before one strikes.
 

WesM

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They should just tax tires and drop all fuel taxes. probably would make a set of tires $2k instead of $1k though.
 

commadorebob

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The only truely fair tax for automobiles would be to tax based on milage driven, If i drive a big pickup that takes 100 gallons of gas to go 1000 miles and someone else has a vehicle that uses 20 gals of gas to go the same 1000 miles we have both traveled 1000 miles worth of road putting the wear and tear on it but the second vehicle isn't having to pay the same as i did to travel that same 1000 miles. Just saying
But is it? What if you live in a border city and do most of your driving in another state? You are paying Georgia the tax money to tear up Tennessee's roads, for example. At least with a gas tax the assumption is you are paying the tax near where you just tore up the pavement.

True, the EV tax falls under the same fallacy but I guess states have to do something.
 

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710-oil-614

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When I got my tags last year they didn’t charge me the extra fee here in Ohio, and just mailed my renewal in that didn’t have the extra fee on it. Not sure if they don’t realize it’s a hybrid or not. Didn’t feel like correcting their mistake
Nice! Yeah I was fully expecting to get hammered when I switched for the model 3 and the guy was like, nope you're good to go man (probably the first person to ever have a positive BMV experience).

I asked if I could re-up my tags for another 3 years, he laughed and said nice try but no.
 

A Sturdy Beast

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In Kentucky, highway fuels have always been taxed with those revenues going to a "road fund" toward highway maintenance. As automobiles have become more fuel efficient, lawmakers have kicked around ideas of boosting ever decreasing "road fund" revenues. Kentucky has decided to begin collecting an annual "electric vehicle ownership fee" of $120 from EV and hybrid owners at vehicle registration. (Here is a link to KY House Bill 8 with highlighted text concerning the topic: https://www.skofirm.com/publications/update-summary-of-2022-kentucky-tax-reform-legislation/#:~:text=Effective January 1, 2023, H.B.,year upon annual vehicle registration.

The reason for this thread is to provide information when trying to decide on EV/hybrid vs. combustion engine only vehicles. I don't know where you live, but you can bet all states will find ways to collect highway maintenance dollars from licensed vehicles regardless of type, so I wanted to share.

BTW, I'm scheduled for receipt of my 2023 Maverick XLT 2.0EB February 22 - 28, 2023, only 16 months after ordering.
You’re basically right, but the link you posted says slightly different than what you say. It calls for a $0.03 per kilowatt hour tax on public electric vehicle chargers, a $120 annual fee for electric vehicles, and a $60 annual fee for non-plug in hybrids like the Maverick. The new tax will start on January 1, 2024. And of course, this is for Kentucky only.
 

MakinDoForNow

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In Alabama, it only applies to EV and PHEV. Maverick is unaffected.
That is a sensible approach but in the end the tax needs to be fair with enough $$ being raised. So perhaps a fair approach would be a milage tax with adjustment for weight/sq inch of road contact. The current gas tax has become unfair and intertwined economically. I am reluctant to support milage tax due to most likely collected annually which would be an increase in registration fees. In Texas annual registration fees are such that they would increase but would be somewhat bearable. In some states that collect property tax on vehicles the $$ amount of annual license renewal could be considered an undue hardship! Perhaps we need to place a chip in each electric vehicle which could then report amount of current vehicle used. (Could be a "toll tag charge"?)
 

Mavapa

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I just did a calculation for Georgia, which has a 29.1 cent per gallon tax. If you drive 10,000 miles at 30 mpg, you pay just under $100 on gas taxes. At 20 mpg you would pay about $145 in gas tax. That makes an annual fee of $100 to $150 reasonable for a full EV.
 
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GPSMan

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They should just tax tires and drop all fuel taxes. probably would make a set of tires $2k instead of $1k though.
This is not a bad idea.

This is actually a good idea.
Write your assembly persons and suggest it.
 

UnTruck

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It would be better to charge registration fees based on gross vehicle weight. PHEV and BEV's are famously heavy and wear roads faster. Personally, there's a positive externality from not polluting as much as ICE engines that we all enjoy and i'm fine if they don't pay as much for a while. The bigger problem is transportation departments wedded to massive highways and spread out development and believing that one more lane will always fix the congestion problem.
 

Spook

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That is a sensible approach but in the end the tax needs to be fair with enough $$ being raised. So perhaps a fair approach would be a milage tax with adjustment for weight/sq inch of road contact. The current gas tax has become unfair and intertwined economically. I am reluctant to support milage tax due to most likely collected annually which would be an increase in registration fees. In Texas annual registration fees are such that they would increase but would be somewhat bearable. In some states that collect property tax on vehicles the $$ amount of annual license renewal could be considered an undue hardship! Perhaps we need to place a chip in each electric vehicle which could then report amount of current vehicle used. (Could be a "toll tag charge"?)
Some insurance companies are already putting chips, or monitoring devices in vehicles to record speeds driven and other info to charge rates accordingly. I assume that they could also record miles driven, if they don't already. They may already be in some of the newer vehicles, but that's another thread.
 

Milqueman

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I just did a calculation for Georgia, which has a 29.1 cent per gallon tax. If you drive 10,000 miles at 30 mpg, you pay just under $100 on gas taxes. At 20 mpg you would pay about $145 in gas tax. That makes an annual fee of $100 to $150 reasonable for a full EV.
True, but what about those that only drive 1000 miles a year, like spouses who don't work and only go to grocery store, college kids who stay on campus, retirees that live on a fixed income and don't drive that often, etc... It's unfair to them. There's a lot of people that don't drive that much. I know it's un popular but a mileage tax is the most fair. Just has to be worked out somehow.
 

GPSMan

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Tax the Tires!

It's a per mile tax without computers, electronics, and any invasion of privacy.

Manufacturers have a very good idea of if a cheap tire is a 30,000 mile tire and if an expensive tire is an 80,000 mile tire, so tax at time of purchase should be based on treadwear rating.
Should you destroy a tire early, your next one tax is pro rated based on mm of tread left, just like treadwear warranty.
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