Efficient Vehicle Tax

[Oldfarmer]

Heard a rumor awhile back that either the feds or individual states (like NC) were/are considering a tax or fee for electric, hybrid or super fuel efficient vehicles to make up for the lost revenue from gas taxes.
Anyone heard anything lately?

 

[goofyone]

The most popular alternative method to the gas tax currently being tested or considered in a number of states is a mileage tax based either directly on the miles driven or on a combination of mileage and EPA vehicle fuel economy ratings which would penalize less efficient vehicles more than more efficient ones. These taxation schemes could either replace or supplement the existing taxes on gasoline.

http://en.wikipedia.org/wiki/Vehicle_miles_traveled_tax

As far as I know only Washington and Oregon have actually begun testing this system and several more are actively considering it. However as governments are always seeking sources of revenue, and gas consumption is dropping, I expect to see more states explore alternative taxation options.

 

[goofyone]

Moderator Comment: I understand members may support or be opposed to these types of taxes however this is not a political forum so debating the appropriateness of taxes and/or government spending habits are not appropriate topics of discussion on this forum.

 

[AriLea]

Heard a rumor awhile back that either the feds or individual states (like NC) were/are considering a tax or fee for electric, hybrid or super fuel efficient vehicles to make up for the lost revenue from gas taxes.
Anyone heard anything lately?

Hopefully that's just a nasty rumor about high efficiency vehicles. It's in the national interest to encourage improvements to our energy use and policies. Also the EV community can muster a bit of lobby muscle on the side of hybrid and EV tech. Can you imagine the conspiracy theory about big oil in this case? Other Green organizations will fight on the side of high mileage vehicles.

That's not to say the gov's aren't discussing the fact that pure EV's are avoiding taxes needed to maintain roads. And the idea that taxing per gallon is now starving road maintenance given the ever increasing MPG efficiency. Inflation also has impacted that kind of revenue. At minimum they may need to 'add' a tax per dollar spent, which is still a problem with ever reducing consumption. However, the per-gallon tax is still useful since it does not relate to fluctuating fuel prices.

The thing is, as a society, we want to encourage high mileage, so nabbing a hybrid or Elio for being so good at savings, seems counter productive.
So I can see is there will have to be a calculator for gross weight times mileage, or a return to toll paid highways. It may be that all vehicles will eventually also pay per the mileage calculator or they will add a 'per fuel dollar spent' tax. Fact is, the heavier and farther you drive the more road repairs you incur.

It will be a huge divisive inter-party fight to straighten any of that out, making all players look bad. I'm sure it will be delayed until after the next presidential race.

 

[CompTrex]

Moderator Comment: I understand members may support or be opposed to these types of taxes however this is not a political forum so debating the appropriateness of taxes and/or government spending habits are not appropriate topics of discussion on this forum.

Aw, Mom!

 

[Texconsin]

The most popular alternative method to the gas tax currently being tested or considered in a number of states is a mileage tax based either directly on the miles driven or on a combination of mileage and EPA vehicle fuel economy ratings which would penalize less efficient vehicles more than more efficient ones. These taxation schemes could either replace or supplement the existing taxes on gasoline.

http://en.wikipedia.org/wiki/Vehicle_miles_traveled_tax

As far as I know only Washington and Oregon have actually begun testing this system and several more are actively considering it. However as governments are always seeking sources of revenue, and gas consumption is dropping, I expect to see more states explore alternative taxation options.

I'd RATHER NOT pay a mileage tax at all, but I'd RATHER pay a mileage tax on top of 84 MPG, than a mileage tax on top of 20 MPG.

 

[JEBar]

if the national average is 20 mpg (I just picked that number for purposes of illustration, substitute any number you like) and they want to tax vehicles burning more, how about including a scaled tax rebate for vehicles getting better mpg's .... OK, I know that will never happen

Jim

 

[Charlie G]

It's a tricky issue, but I don't think adding tax to efficient vehicles is counterproductive - as long as it's less than you're saving on fuel economy.

Roads have to get paid for, that's really all there is to it.
You either tax everybody to pay for it equally, whether or not they use the road and regardless of how much - or you try to find a way to tax people who use them.

Historically, gas mileage has been garbage and relatively even. People who drove more bought more gas and thus paid more tax.

Now you've got a situation where there's people:

• driving a crappy old car with poor mileage because they can't afford any better
• driving a amp'd up muscle car that gets poor mileage because it's fun
• driving a powerful truck because they need it for work
• driving a expensive efficient car, just around town in retirement
• driving a efficient car thousands of miles a year to work

The trick is trying to figure out how to fairly apply taxes in every situation.
It's hard, people don't like paying for things.
If it were easy, it would be solved already.

 

[Norahsbed]

Only two things certain in life, are death and taxes and they even tax death! LOL!

 

[Joshua Caldwell]

It's a tricky issue, but I don't think adding tax to efficient vehicles is counterproductive - as long as it's less than you're saving on fuel economy.

Roads have to get paid for, that's really all there is to it.
You either tax everybody to pay for it equally, whether or not they use the road and regardless of how much - or you try to find a way to tax people who use them.

Historically, gas mileage has been garbage and relatively even. People who drove more bought more gas and thus paid more tax.

Now you've got a situation where there's people:

• driving a crappy old car with poor mileage because they can't afford any better
• driving a amp'd up muscle car that gets poor mileage because it's fun
• driving a powerful truck because they need it for work
• driving a expensive efficient car, just around town in retirement
• driving a efficient car thousands of miles a year to work

The trick is trying to figure out how to fairly apply taxes in every situation.
It's hard, people don't like paying for things.
If it were easy, it would be solved already.

The best solution I think would be to have separate gas and property taxes. Gas taxes for consumption, property taxes assessed at time of emissions inspection where the inspector can check the odometer and the tax would be assessed based on the mass of the vin and the miles driven between inspections.

The tax should be above the cost of maintaining and expanding infrastructure for the following reason - where the excess would cover the following subsidy: When trading in a vehicle, you get a $100 subsidy for each combined MPG of the new vehicle over the previous vehicle. The subsidy can be subject to a multiplier if the vehicle being traded in is going to be destroyed instead of resold. Given that the poor are those with the oldest vehicles that are most likely to be destroyed and also have the worst combined MPG and are the most polluting this is a way to produce the most good while being fair to everyone as everyone can take advantage of this equally.