Electric Vehicle Owners Now Required to Pay $100 Annual Fee in North Carolina

JAN 18 2014 BY ERIC LOVEDAY 31

Own an EV in North Carolina? It’ll Cost You One of These

Own an EV in North Carolina? It’ll Cost You One of These

Starting in January, owners of the approximately 1,600 pure electric vehicles registered in North Carolina will be required to pay a $100 annual fee.

This fee, which the state signed into law, is there to offset losses from gas taxes.  The fee will be used to pay for road maintenance.

North Carolina lists 146 BEVs due for registration renewals in January, so that group of owners will be the first to have to pay the required $100 annual fee.  The fee is above and beyond the typical automobile registration fee in North Carolina.

Plug-in hybrid vehicle owners, as well as EREV owners, are not subject to the fee.

The $100 fee will be imposed on new EV buyers in the state too.  Those buyers will have to pay the fee immediately upon registering their EVs.

This EV annual fee in North Carolina is the beginning of a trend that we will slowly see make its way across the nation.

Source: WTKR

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31 Comments on "Electric Vehicle Owners Now Required to Pay $100 Annual Fee in North Carolina"

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It’s already been around in Washington State since 2012 ;(

An un-holly alliance of anti-EV Republicans, coward Democrats and phony deficit hawks makes this type of fee the easiest to pass through state legislatures.

The few hundred thousand $ this fee adds to state coffers pales in comparison to:

a. The huge loopholes and tax distortions those same politicians are unwilling to tackle, and
b. The psychological effect in discouraging some people from buying EVs, given that the state is so eager to penalize them for it.

Yes, EV owners should pay their fair share for road maintenance, but is this really top priority as long as BEVs are a tiny fraction (<0.1%) of registered vehicles? Maybe, e.g., until there are more of them around of various types (just like in NC, the WA law lets Chevy Volt owners off the hook, free), so we can figure out both their infrastructure needs and how to pay for them?

It's just an easy political scapegoat, that's all.

+1

No problem. $100 fee vs $2,000 in gasoline.

I guess that’s how much extra road tax is added to gasoline and the expected miles driven in a year.

I really don’t have a problem with this, or at least only at the margins. Gas taxes fix roads, and there has been growing inequity. Too much, or too little is as simple as calculating the gas taxes you are avoiding. I remember calculating the extra $64 as a bit steep, in VA, considering hybrids aren’t that much more efficient that they avoid that much tax.

EV incentives can be separate from funds needed to service highways.

I wonder how much of the fee will go to paying the people responsible for collecting and administrating the fee? I bet it will work out to a net loss for the government.

Actually, it will not be a loss since the owner has been paying annual registration fee anyway. There is no extra paperwork needed. You can even pay the bill online.

That’s fine. It is fine for EV owner to save money on fuel, but not on the taxes that come with fuel, which serve to maintain the roads. Right now, it is not a real problem, but with more and more EVs on the roads, it will become one.

The taxes on gas was a not that bad way to make people who use the roads pay for it. But EVs are changing that, and the system will eventually have to change. I just hope it wont become a annual fee, making those who don’t drive a lot paying for those who do. We now have the technology, so it will be possible to make a more intelligent system than that.

That’s right Francis. In the day, taxing at the pump was probably the best system. Today, technology brings so many better ways to handle this.

I am a fan of paying from a formula of vehicle weight x miles driven. Many states already have inspections with this odometer reading available and already in the data bank.

Personally I would rather use a system that tracks miles driven so you could pay each state accordingly.Most people see this as an infringement on their privacy even as they carry a tracker around in their pocket in the form of a cell phone or smart credit card.

So maybe an annual fee based on odometer reading. A certain amount of money per mile.

So if you live on the edge of a State and rack up miles driving on out of State roads you are not paying the right State the road tax. You end up paying your Residence State the road tax. Sounds like non-toll roads will disappear in the future.

NPNS!
Volt#671

What a headache! Seriously. Paying by mile might seem like a good thing, but the effort and dollars wasted in this would negate any positive return we would see in total. The added cost of governing this is tremendous. Plus, the variance from year to year would be harder for states to budge road repairs and growth. A flat fee based on expected use for all drivers is much easier on everyone concerned.

There was supposed to be a $50 fee for hybrids, but that got cut at the last minute. Honestly, I wouldn’t mind paying it since I’m currently 86% electric.

If they want to impose fees instead of taxes, that’s fine, but they didn’t do in correctly. Every car — electric, hybrid, diesel, or gasoline — should just pay the $100 fee, and all the gas taxes should be eliminated. That would be fair to all of them.

I like John F’s suggestion, make the $100 road tax across all vehicles, however I would go one step further and add a more significant “Pollution Tax” on every gallon of gas. Those vehicles that pollute more generally consume more gas-so they would effectively get taxed more. Take some of that Pollution Tax and move all city/state vehicles to plug ins, and join more of the CARB/ZEV states in offering an up front tax break for purchasing a Plug in vehicle.

Good thoughts and suggestions.

Not really fair because the driver that drives 20,000 miles per year would pay the same as the driver that only drives 7500 miles per year. The more you drive, the more benefit you receive and the more wear you cause, so fees should be based on amount driven to be fair.

Precisely. An annual fee would be less fair than the actual system. It should be just normal that people driving more pay more for the roads.

That would be losing proposition for the state. For WA, the break even point is around $180. That also doesn’t address commercial use of the roads

Someone has to pay for the wear and tear on the roads, don’t they?

Should I pay less wear and tear on the roads for driving a motorcycle? Half the wheels? A fraction of the weight?

And a heck of a lot better gas milage, so you basically DO pay quite a bit less in gas taxes so you do pay less for your road use.

The fee would be fine if a portion of it went for building and maintaining a charging infrastructure. The fairness argument does not hold water. If fairness was the objective every vehicle will pay based on its annual mileage and weight regardless of its propulsion.

Is if fair a Prius driver pays 4¢ per mile vs. Hummer driver paying 68¢ per mile in gas tax? (note: not actual numbers as gas taxes vary wildly across the country). Should a car with studded winter tires pay by the tire, or by the mile, or added gas tax for the extra maintenance the tires generate? The problem with taxing tires is it promotes unsafe driving habits. History: Gas tax was introduced in the 1920’s and 1930’s when the first highways were constructed between towns and cities. At the time, both vehicles ran on oil products and the roads were made with oil products (asphalt). Also there was little variation between the amount of gas each vehicle used per mile. Thus collecting road fees at the pump was a simple way to pay for infrastructure expansion. Maintenance of the roadways came later, requiring additional funds, thus added gas tax. Today drivers are using more efficient vehicles and driving less miles per year … less funds to maintain roads and bridges. How will the funding gap be filled? Another gas tax? To fund road maintenance in 2025 with the same funding level as today collected by gas taxes, will… Read more »

I agree Brian, but why the vehicle value as a variable?

The gas tax (an excise tax not a sales tax) system is BROKEN and the issue of declining revenues should have been addressed when mandated increases in fuel standards were required. Furthermore, when high mpg hybrids were introduced over a decade ago, it was clear where things were headed, but the fed & states did not legislate accordingly. A tax collection procedure needs to be instituted which factors in vehicle weight, # of axles, and miles driven so that a ‘fair & equitable’ tax is collected from all drivers at the time of annual vehicle registration.
These patchwork, compensatory, additional state fees are illogical and don’t address the inadequacy of the current system!

Why not charge Gas vehicles owners $100 more for not converting to electric and helping out our environment and discourage our dependence on oil.

Dr. Kenneth Noisewater

Increasing gas tax does so many good things as a side effect that it should be done for those reasons:
* reduces local pollution (NOx, particulates, heavy metals, etc. that contribute to lung ailments)
* reduces dependency on foreign oil and wealth sent out of the country
* reduces demand for gasoline, thus reducing its price (for a double-whammy on evil oil-pusher regimes)
* coupled with a reduction in support for military budgets to protect access to oil, would end up a net-reduction in taxation

Just keep boosting the gas tax until you get to a Laffer-curve point at which increasing them reduces their revenue (after years of efficiency gains caused by the increased taxation), then transition to registration taxes. Of course, by that time there needs to be legislation that forces 100% of the taxes collected via registration to be spent on maintaining and improving roads and related infrastructure, and not diverted to pay off unrelated bonds or into the general fund.

A tax on EV’s is ridiculous. However, it’s par for the course for a state that thinks the “Right to Work” is a good thing for it’s working citizens and paying it’s teachers poorly is a good idea. (NC ranked 51st in teacher salary change last few years) I guess progress is not something automatically with the passing of time.

So my gasoline powered car gets 34 mpg and I drive it 14,000 miles a year. There’s a 37.6 cents per gallon tax on the 412 gallons I consume in this venture, resulting in a tax of about $150. Until your car starts getting over 50 mpg you’re coming out ahead driving an electric based on taxes alone.

Nice to see North Carolina pushing so hard for growing technologies – RACE TO THE BOTTOM! My parents will buy my Tesla, register it Pennsylvania, and let me drive it in North Carolina. You’ll not get a dime from me – not because I oppose the tax, but because you oppose the sale of Teslas in North Carolina.

The state will give you incentive money to buy the car and then provides disincentive in the form of a tax . Doesn’t make to me. There is no way to win with the current goverment mindset of taxing prosperity. At what point are these taxes going to stop. I have found a way to save money so the goverment wants to tax me more. I am almost to the point where I pay more taxes on my income than I get. This type of disincentive will lead to everyone driving the goverment issue Toyota Corolla look alike.

Right you are Sir:
“”
The state will give you incentive money to buy the car and then provides disincentive in the form of a tax.
“”
This behavior by that state is ludicrous nonsense blasphemy IMHO.