A number of states are exploring new fees for hybrid
and electric car owners in order to compensate for the loss of revenue
in gas taxes on fuel-efficient vehicles. The proposal is opposed by
those who view the new fees as antithetical to one of the touted
benefits of owning a hybrid: savings.
Boosting taxes “for people who want to use less gas is at odds with
policies that are trying to make it easier for people who want to adopt
clean and efficient technologies,” asserted Genevieve Cullen, vice
president of the Electric Drive Transportation Association, a
Washington-based industry group.
But those who support the policy say it is a way to ensure that all
drivers have a stake in maintaining the roads on which they drive.
Fox News reports:
Gas taxes are the most vital source of transportation funding,
making up nearly 40 percent of all state highway revenues and more than
90 percent at the federal level, according to the National Conference
of State Legislatures. But those revenues haven’t kept up with rising
construction costs, falling 41 percent in real value at the federal
level since they were last increased 18 years ago, according to the
Institute on Taxation and Economic Policy. The same non-partisan
research group estimates that state and local gas-tax revenue fell 7
percent to $38 billion between 2004 and 2010.
Sales of electric and hybrid cars have soared over the last 10 years, observes Auto News.
Last year, Toyota Motor Corp. sold 236,659 Prius hybrids, a 73-percent
increase from 2011. Likewise, General Motors doubled its sale of hybrids
last year.
But the increase in the sales of these vehicles is being blamed for
the decrease in gasoline tax revenues. As a result, at least 10 states
have either considered or passed legislation to collect fees from owners
of hybrid or electric cars.
Some opponents of the fees on hybrids and electric cars are are instead proposing a taxation system based on miles traveled.
“I think so far what we’re seeing is the trend seems to be either an
additional annual fee or some type of registration fee seems to be much
more popular than the miles-driven tax, because that is a newer
technology and raises some privacy concerns,” said Kristy Hartman, a
transportation and environment analyst for the National Conference of
State Legislatures.
New Jersey recently abandoned a plan to charge vehicles by miles
traveled after significant opposition from media and legislators,
instead opting for a flat fee on electric vehicles.
Lawmakers in Arizona also support the fees on fuel efficient vehicles.
“The intent is that people who use the roads pay for them,” explained
Arizona state Senator Steve Farley, a Democrat from Tucson who wrote a bill
to tax electric cars. “Just because we have somebody who is getting out
of doing it because they have an alternative form of fuel, that doesn’t
mean they shouldn’t pay for the roads.”
In North Carolina, senators added an additional $100 annual registration fee for electric car owners and a $50 fee for hybrid
drivers. They estimated that the additional fees will raise $1.5
million annually. Whether the North Carolina House will approve the
provision remains to be seen, however, as it prepares to release its own
spending plan in the next few days.
But North Carolina Senator Neal Hunt asserts that the provision is
the best way to insure that all drivers are contributing their fair
share. ”It just seems logical to me that they should pay a small fee for
the use of the highways and the wear and tear they put on the
highways,” he said.
Fuel efficient drivers in the state of North Carolina, who are
already perturbed by the end of a pilot program offering four interstate
plug-in stops, are voicing their opposition to the proposal.
“On its face, it’s reasonable for electric owners to contribute
toward road tax in some way,” said Ryan Turner, an IT professional in
Chapel Hill. “I think what’s suspect is that, given all the issues we
have in this state, given the state’s woeful effort so far to promote
electric vehicles as part of some statewide agenda, it is suspect that
this vehicle tax is a priority given the small amount of the revenue it
will bring in.”
Turner notes that more conventional vehicles are achieving fuel efficiency that is comparable to some hybrid cars, and therefore considers the proposal to be “arbitrary.”
According to Jay Friedland, legislative director for the advocacy
group Plug In America, legislators should be asking fuel efficient
drivers to pay their fair share through additional fees, but should wait
until the number of alternative-fuel vehicles reaches 100,000. North
Carolina presently has approximately 30,000 registered hybrids and
electric cars.
“We generally say this is a period of time when you should be
incentivizing these vehicles, but after a while, yes, everyone should be
paying their fair share,” he said.
Friedland noted that Plug in America supports a vehicle-miles tax.
“Fundamentally, the mechanism exists [for charging a miles-traveled
tax], but I don’t know of any states that are currently doing that yet,”
he said. “We’re really on the edge of this, because we’re for once
actually watching fuel consumption going down, and that’s why we’re
watching these taxes come up.”
But the vehicle miles-traveled tax has raised significant privacy
concerns, as it requires the use of a government-mandated device inside
the vehicle to measure the miles used and communicate that figure to a
central system.
“If you think about it, you’ll realize that your location history
indicates where you sleep, where you work, who you sleep with, who you
go to business meetings with, where you go to church, what political
meetings you attend, what nightclubs you go to,” saidPeter Eckersley, senior staff technologist with the Electronic Frontier Foundation.
“These facts about people are astonishingly sensitive. And we don’t want to build a permanent tracking system for those by accident,” he said.
Tom Stricker, vice president of technical and regulatory affairs at
Toyota Motor North America, opined that it’s “wholly inconsistent” to
single out hybrids for an additional tax. “A compact gasoline car may
consume less fuel and pay less gasoline tax than a hybrid SUV, but only the hybrid SUV would be subject to an additional tax,” he noted.
http://www.thenewamerican.com/economy/economics/item/15673-states-propose-fees-on-hybrids-to-cover-gas-tax-losses
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