Consumer Reports Asked “Should Electric Cars be Taxed Extra?” Majority of Respondents Say “No”

4 years ago by Eric Loveday 12

Consumer Reports' Question Posed on Facebook

Consumer Reports’ Question Posed on Facebook

This electric vehicle tax issue seems to rear its ugly head with regularity these days.  So much so that hardly a week passes without at least one more US state adding itself to the growing list of those who either tax electric vehicles owners to make up for lost gas tax revenues or are at least considering it at the upper political levels within the state.

Taxes...Ugh

Taxes…Ugh

So, why not see what the public has to say in regards to this new form of taxation?

That’s precisely what Consumer Reports set out to do in an online survey posted first on its Facebook page.  The question posed by Consumer Reports is seen in the image above and, in next to no time, more than 300 comments poured in, most against this form of taxation.

Below we pulled out a few of the more informative and amusing comments:

“Of course not. They should be rewarded for saving the environment from the emissions and not using up the oil supplies unnecessarily. Don’t punish them for doing the right thing.”

“How about taxing people for not buying cigarettes? Or liquor?”

“If you use the roads, you should pay regardless of the type of vehicle you drive. I say scrap the gas tax and replace it with a tire tax. Everyone pays!”

“Let the government raise the tax on luxury vehicles to offset any loss.”

“The oil companies continue to post record profits, so how about doing away with the total $4.4 billion in tax credits the government is giving each year to Shell Oil and Exxon/Mobil?”

To peruse all of the responses to Consumer Reports’ question, visit the consumer advocacy group’s Facebook page by clicking here.

via Consumer Reports

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12 responses to "Consumer Reports Asked “Should Electric Cars be Taxed Extra?” Majority of Respondents Say “No”"

  1. Bonaire says:

    I’d love to pay an EV tax for my Volt. As soon as we first implement a Prius tax.

  2. Aaron says:

    Dismissing the logical arguments against EV taxes, how much money do these states expect to make? Here in Texas, I would say we probably have fewer than 10,000 EVs. At $100/year for the proposed EV tax, that would bring in $1M/year.

    Raising the gas tax $0.01/gallon would bring in close to 100 times that in Texas alone.

  3. yoyodyn says:

    The tire tax seems like a good idea that I had not thought about before.
    Not sure how online tire sales would handle that though.

    This would also encourage people to properly inflate and maintain their tires if tires suddenly cost twice as much, but gas prices dropped by 15 cents.

    1. kdawg says:

      Let’s look a someone who drives 12K miles/year.
      The avg. state sales tax per gallon is 25cents.
      The driver uses about 500 gal/year or generates about $125 in tax.
      Tires typically last ~48K miles or in this case 4 years.
      That means in 4 years they will collect $500 from the driver in gas tax.
      To get that from tires they would have to increase the price of a tire by $125.

      I think this huge (more than double) price increase will cause people not to buy tires and create unsafe conditions.

      And how do you track tires bought across state lines?

  4. bloggin says:

    CR wanted a NO answer, so they designed the question to ensure that.

    And just to ensure it was a no, whether you were on the fence or not, they added the ‘…due to lots of things…’ part just to piss everyone off. lol

    The fee/tax is necessary going forward….

    I would start with EVs since they buy zero gasoline, and add a ‘road use’ tax there to adjust for the ‘average’ fuel used and ‘average’ tax normally collected. Then credit for clean air points.

    Next remove the fuel tax on diesel, and charge a similar ‘road use’ tax for all diesel vehicles in the same fashion as the pure EVs. Adjusting for the vehicle weight, use type(commercial/personal) and annual mileage.

    Then add the plug-in hybrids at a tiered rate based on battery capacity. The more battery, the higher the tax, and the less fuel purchased. This would also help plug-in users focus on using more EV power. Adjusting for the vehicle weight, use type(commercial/personal) and annual mileage.

    Hybrids would stay with gasoline vehicles, since they both still purchase gasoline, and their mpg is dependent on how the consumer drives. Since a hybrid can get worse or better mpg than a traditional gasoline vehicle. Convert this group to fuel tax together. Adjusting for the vehicle weight, use type(commercial/personal) and annual mileage.

    This puts everyone on a level playing field, paying their road tax, based on their vehicle type/weight/use and number of miles driven.

    Maybe we should look at how the UK does their road taxes…

  5. kdawg says:

    Toll roads.. money comes from the people who drive on the road. No worries about crossing state lines. All cars treated the same.

    1. Taser54 says:

      Ultimately, it will come down to an annual mileage tax coupled with an annual safety or emissions inspection (already implemented in many states). Apportionment for out of state driving will be the burden of the car owner. This will apply to all vehicles regardless of locomotive power. Weight class will also be a factor, just as it is when a vehicle is registered with the DMV.

    2. Open-Mind says:

      I see a couple problems with universal toll roads..

      1) Only a small subset of roads have the needed toll plazas, and building toll plazas for the rest of the roads would cost billions, plus even more for maintenance and salaries.

      2) Stopping to pay tolls every few miles would be a huge P.I.T.A.

      It would be simpler and cheaper to just add a mileage fee to license-fee that we already pay.

  6. zilm says:

    Guys, in most countries of europe exists ecological gasoline tax of about $3/gallon, which car owners are paying for what others people are forced to breath. Same time USA spends $500b/year on subsidizing fossil energy. So the only question that should exists: how to increase fuel taxation and lower subsidies on it.

  7. Steven says:

    I mostly agree with Teaser54. A formula taking into account miles driven, weight, and vehicle type would be most fair to all residents in a given state. If you want to drive on a toll road, that’s your choice.

  8. Jay Cole says:

    Personally, I feel at some point EVs need to be taxed on their equal portion that internal combustion cars currently pay via pump tax to maintain the infrastructure they use.

    That being said, I think it is ludicrous to implement it now when the volume of plug-in vehicles on the road are meaningless to fiscal well-being of that system, and while the federal government and many state and local governments have initiated huge monetary incentives to increase adoption of EVs at the same time as these fees.

    IMO, special plug-in vehicle taxes today are very counterproductive to national goals, and send out a mixed message about EVs to Americans right now.

  9. qwerty says:

    Why don’t these states stop subsidizing gas, then ask the Feds to stop subsidizing gas and use the saved funds for road improvements, maintenance and new roads?

    WIn – Win if you ask me

    Should EV’s be taxed? Hell yes! But at an equivalent rate as ICE vehicles.
    Don’t come up with miles traveled tax. That’s jus plain dumb. If I drive 25 miles in my state, cross to another, and drive 125 miles in the other state, who gets my tax dollars? I traveled most of the miles in the other state and used more of their roads!