Lawmakers in Michigan Mull Tax on Electric Cars
April 26, 2013 9:14 AM
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States want more money to fix roads
Lawmakers in Michigan are currently considering imposing a tax on electric vehicles. Michigan joins Oregon, Texas, Virginia, Arizona, and Washington, which are also considering a tax on both electric and hybrid vehicles. States currently collect taxes when drivers purchase gasoline that helps fund the construction of new roads and maintenance on existing roads.
The problem is that electric vehicles don't use gasoline at all and hybrid vehicles use less gasoline than a traditional car meaning states are seeing less tax revenue.
Michigan State Rep. Mike Shirkey (R) proposed the tax on electric cars.
Michigan Rick Snyder (R) wants an additional $1 billion to repair roads around the state. In the past, Snyder has supported other ways to raise more money within his state including increasing the tax on fuel and increasing vehicle registration fees.
Governor Snyder said of Shirkey's plan, "I’d have to analyze that, but I’d say there’s competing interests on both sides of that question."
In Oregon, the plan would
of vehicles that get at least 55 mpg a tax on each mile driven after 2015. Oregon would also give drivers of efficient vehicles the option of paying a flat rate each year. Drivers of electric vehicles in
are expected have to pay a fee of $100 per year to help cover road maintenance.
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Someone Needs to Look at the Numbers
4/26/2013 10:06:21 AM
According to this page:
There are about 90,000 electric cars on the road in the US. Divide by 50 for Michigan's share (yeah, I know) and call it 2,000 cars.
According to this page:
There are about 125 million cars of all types on the roads in the US. Divide by 50 again and that's 2.5 million in Michigan.
So, this guy things those 2,000 cars (.008% of the cars on roads -- and that doesn't consider trucks) are really harming their roads and tax base? And, he expects to re-coup $1 billion from them: (1 x 10^9) / (2 x 10^3) = $500,000 each? Good luck with that.
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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