Tax Policies and green transportation, to encourage adoption, or to fund the roads
Tax policies are impacted by Green Transportation in two ways:
|**Encouraging adoption**: Tax breaks are being used to mitigate the cost and encourage adoption. Past tax breaks have been successful in encouraging hybrid vehicle adoption.|
|**Impact on road taxes**: The road system is primarily funded from fuel tax, but electric vehicles don't use fuels that are taxed. What's the government to do?|
At the moment (late 2013) electric vehicle adoption is still in small enough numbers that gasoline tax revenue is not affected. However the project of getting people to buy electric vehicles is surely going to take off in a couple years when the second generation of EV's comes along. Once there are significant numbers of EV's on the road, the affect on tax revenue will be significant.
The US system of gasoline taxes to fund the highway system has many excellent features. It is anonymous, fair, and very efficient to capture the money at the gasoline pump. It's so invisible that most people probably aren't aware they're paying a tax. But, it makes governments wholly dependent on gasoline to fund the highway system. Governments want us to adopt electric vehicles, raising a question ...
How will we collectively pay for the highway system?
- Big Brother concerns with collecting vehicle miles traveled taxes Taxing on vehicle miles traveled fairly connects the tax to actual use, but the devil is in the details of how such a tax will be collected.
- History of EV tax proposals across the US What has been happening
- Michigan 2013 HB4608 adding registration fees for electric vehicles Adds $75/year to registration fees for electric cars, $25/year for PHEV's.
- Report of Minnesota's Mileage-Based User Fee Policy Task Force Minnesota has a task force considering how to collect a mileage-based user fee (MBUF) as a way to comprehensively rethink the transportation funding system. In December 2011 the task force published a paper giving recommendations of how to approach this problem.
- NJ S2531 Establishes mileage-based fee on passenger vehicles; excempts them from motor fuels tax Eliminates the gasoline tax, meaning it's a big gift to gasoline, while imposing a per-mile fee. The per-mile fee is based on self-reported vehicle miles traveled.
- NC SB710 Fair Share Contribution for Elect. Vehicles. Imposes a $100 yearly additional registration fee on electric vehicles
- PEV Collaborative Transportation Funding Consensus Statement A white paper by the Plug-in Electric Vehicle Collaborative concerning funding of the highway system.
- What's problem electrified vehicles cause for highway funding Does the shift to electrified vehicles cause a problem in funding the highway system?
- Mileage-Based User Fees for Transportation Funding; A Primer for State and Local Decisionmakers A RAND Corp study on transportation system funding in the light of increasing fuel efficiency.
- When should changes to highway system funding be enacted Many say it's too early right now to make changes, because there aren't enough EV's on the road yet.
- Transportation Fuel taxes in the U.S., Canada, Australia, etc Various governments around the world use different methods to fund their highway systems.
- Vehicle Excise Duty A flat yearly registration fee for car ownership.
- Vehicle miles traveled tax Car ownership fees based on how far the car is driven .. the US gasoline tax is effectively a vehicle miles traveled tax.
- Alternative Fuel Vehicle User Fee Options A report exploring transportation infrastructure user fee options for alternative fuel vehicles in Vermont, focusing primarily on electric vehicles, but with some discussion of compressed natural gas (CNG) vehicles.
- H.510: AN ACT RELATING TO THE STATE'S TRANSPORTATION PROGRAM AND MISCELLANEOUS CHANGES TO THE STATE'S TRANSPORTATION LAWS
- HB 2660: Addressing transportation revenue (Washington State) Legislation which passed in 2012 imposing a $100/year registration fee for electric cars.
- SB 5251: Imposing an additional vehicle license fee on electric vehicles. (Washington State)