$1000/yr for EV registration fees? OUCH! I thought the $208 I'm current paying in Georgia was absolutely ridiculous.
Legislatures are taking the wrong approch to the issue. They are simply taking the path of least resistance as EV owners are currently an extremely small group with little political power. Instead of being heavy handed, they really need to be smarter about thinking where we are, where we are heading, and how to transition between the two. Let's operate on the presumption of an ICE present and an EV future.
The plan I've devised has two essential elements: road payments based on mileage and efficiency, and revenue neutrality. Efficiency matches the current gas tax collection model in which vehicles that are less efficient pay more. Revenue neutrality because the transition should not cause less revenue to be collected.
All EVs already have ratings for the equivalent gas usage in terms of MPGe. The numbers are a lot higher for EVs as they are much more efficient. For example the Bolt-EV is 119 MPGe. The basic idea is that the EVs are charged the tax rate on the equivalent gasoline of their annual mileage. So a Bolt-EV driven 11,900 miles in a year would be taxed for 100 gallons of gas equivalent. At the proposed 44 cents/gal, which I'm going to presume also needs the 18.6 cent federal excise tax too, that the 62.6 cents/gal would have an annual tax charge of $62.60. Now the EV would need to pay the $150 registration fee that everyone else pays. But the $212.60 is a sight better than $1000.
Now there needs to be a couple of tweaks. First is that administrating mileage tracking is a burden on the state. To simplify, the state should send out tax bills based on a standard mileage that's well above the annual average, say 25,000 miles. Second, if the EV owner wants to make the effort, they can document their actual mileage with a notarized letter to get the discount of the actual mileage. Otherwise they are obligated to pay the standard mileage fee. In the above example 25,000 miles would translate to 210 equivalent gallons with a tax of $131.50, which is more than double the actual mileage tax charge. BTW since gas at the pump already collects based on efficiency, just continue to collect as normal.
Moving on to revenue neutrality. Clearly the above model will encourage EV adoption as you can save money by driving a more efficient car. For example a Sonic at 32.5 combined MPG would use 366 gallons to drive 11,900 miles with a total cost of $229.10 in collected taxes for example. That's more than the Bolt-EV even charged at the 25,000 mile rate. With much more efficient cars, tax collection revenue would drop off. To combat that, the per gallon tax rate should be automatically adjusted every year or two to ensure that the total collections stay revenue neutral. EV owners will have to pay more of course. But as the gas tax goes up, the remaining ICE owners will have to pay more too.
In the end, a large EV vehicle base will be paying for the entire collection based on mileage at a relatively high rate. But it would be someone fair, and not $1000 fee per year, which is absolutely ridiculous. One last item, every kWh of electricity put into an EV is charged sales tax too, which will be a secondary revenue stream.
Last edited by ga2500ev; 05-10-2019 at 11:59 PM.