Wednesday, June 12, 2013

States look to Tax Hybrid/Electric Cars to make up lost revenue on Gasoline tax

North Carolina is joining a growing number of states exploring new fees for hybrid and electric car owners to help make up for revenue those drivers aren't paying in gas taxes on their fuel-efficient vehicles. 
The proposal strikes many owners of alternative-fuel vehicles and some advocacy groups as a wrong-headed approach to balancing priorities of promoting U.S. energy independence with sustainable infrastructure funding. But policymakers and some experts argue taxing hybrid and electric vehicle owners is a matter of making sure all drivers help maintain the roads they use and construct new ones.
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. 
Many transportation organizations and other groups say an overhaul that moves the system to a tax based on miles traveled is needed, but those reforms come with their own hurdles and for now states are looking for other fixes. At least 10 states are considering or have passed legislation to collect fees from owners of electric or hybrid cars.
Read the rest of the story HERE.

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1 comment:

Right Wingnut said...

Gov. Pawlenty started a pilot program in MN to test a mileage tax in his last year for the same reasons. It involves having a transmitter mounted on your car, so the state gov't can monitor how many miles you drive. Of course, they would also know where you are at all times.