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Indiana SB613 proposes fees for alternate fuels and electric vehicles

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Tags: EV Taxes

In the 2013 session of the Indiana Legislature saw the introduction of SB 613 which focuses on collection of retail taxes on alternative fuels, and imposes a road impact fee on electric vehicle purchases. The bill was immediately referred to the Committee on Tax and Fiscal Policy, who has a long list of bills to consider.

A large part of the bill concerns retail sales of "alternate fuels" which includes hydrogen, coal-derived fuels, and non-alcohol biofuels. The bill would require a tax on those fuels at a rate of $0.18 per gallon gasoline equivalent (GGE). "Gallons gasoline equivalent" is a standard method developed by the U.S. EPA to compare fuel efficiency between different fuel types. It is based on the BTU content of the fuels being compared, and lets one say that 1.5 gallons of Ethanol, or 33.41 kilowatt-hours of electricity, or 357.37 cubic feet of hydrogen, is equivalent to 1 gallon of gasoline.

For electric vehicles the bill would require payment of an annual "local road impact fee." It would apply to any plug-in hybrid with an electric range of 35 miles or more, or any all electric vehicle. The proposed fee is $100 for a passenger electric vehicle, $200 for a truck, van, recreational vehicle or bus with a weight under 9,000 lbs, $250 for one under 11,000 lbs, and $500 for tractors meant to be used with semitrailers.

SB 613 - (openstates.org) http://openstates.org/in/bills/2013/SB613/#actions -

Alternative fuels. Provides for the collection and remittance of the state gross retail tax on alternative fuels. Provides for the imposition of the motor carrier fuel tax upon alternative fuels by imposing the existing rates on the gasoline gallon equivalents of alternative fuel sold. Imposes an excise tax on alternative fuel used as motor fuel. Provides that the alternative fuel decal law does not apply to vehicles other than utility owned vehicles after June 30, 2013, and to utility owned vehicles after March 31, 2014. Imposes a local road impact fee on electric powered motor vehicles that must be paid upon registering an electric powered motor vehicle. Provides that the local road impact fee must be deposited in the local road and street account.

(www.in.gov) http://www.in.gov/legislative/bills/2013/IN/IN0613.1.html

Fiscal Impact Statements

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