Quick Note: Virginia EV/Hybrid Drivers Protest $100 Annual Fee
February 4, 2013 3:28 PM
comment(s) - last by
Gov. Bob McDonnell
The fee is meant to replace the state's gas tax
hybrid and electric vehicles
protested a proposed transportation plan in the state of Virginia, which would charge them $100 per year.
The $3.1 billion transportation plan, which was proposed by Gov. Bob McDonnell, would eliminate Virginia's gas tax entirely. However, drivers of hybrid and electric vehicles would have to pay an annual fee of $100 to make up for it.
"It's meant to compensate for the federal gas tax that those vehicles do not pay," said McDonnell.
However, hybrid and electric vehicle drivers feel that this plan thwarts progress in the area of clean vehicles rather than encourages it. Some drivers have even called the fee a "punishment."
"We should be rewarding people for trying to do their part to stop the climate crisis and to lower pollution," said Beth Kemler, who attended the protest. "We shouldn't be punishing them with taxes."
In other U.S. states, such as California, residents are awarded for making green auto choices. California residents can
save as much as $13,000
on the purchase of an electric vehicle through the use of tax rebates/credits.
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$100 is overkill for stated reason
2/4/2013 5:38:24 PM
The Governor says this is to make up for lost federal gax tax. The problem is that this is only 18.4 cents per gallon. If he meant to include the state one as well, it is 38.3 cents.
$100 at 18.4 cents translates to 543 gallons purchased.
$100 at 38.3 cents translates to 261 gallons purchased.
At 12000 miles and 30 miles per gallon, you would buy 400 gallons which translates to $73.60 fed and $153.20 overall. The Prius owner at 50 mpg is still buying 240 (91.82) so charging him $100 for the missing 160 gallons (62.5 c/gallon) seems inappropriate. The state benefits considerably from cars using less fuel - charging an extra $40 runs counter to this. And that's for a prius, one of the most efficient hybrids you can buy. If you're really just trying to make up revenue, the hybrid fee should drop to $50.
There is better justification to imposing the flat fee for the EV, though the taxes paid to power generation should be considered. While charging for mileage is the 'fairest' route to go, the reality is that the costs around tracking and billing for it are too great for a fee this small. It's much more efficient to have a flat fee as proposed.
Unfortunately, you do end up with a fee that is only suitable for full time drivers. For those who walk/bike/take the bus to work and only drive on evenings/weekends, their annual mileage tends to be half or less. They lose out with a flat fee.
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