As GM and the broader automotive industry move closer and closer to a full EV transition, the specifics of EV ownership are falling under the microscope. That includes the costs involved, with critics pointing to a higher initial cost of ownership for electric vehicles compared to equivalent ICE-powered vehicles. Now, one study indicates that electric vehicle drivers are also required to pay more in taxes when compared to ICE vehicle drivers.
According to an analysis from EV Hub, a product of Atlas Public Policy, EV drivers in 36 states pay more in taxes compared to drivers of ICE-based vehicle, creating an inequality among electric vehicle adopters.
“We find that 45 states collect at least one tax or fee, 28 states collect at least two taxes or fees, and three states collect at least three taxes and fees,” the organization states.
The report indicates that these taxes are applied on vehicles and charging, resulting in a “EV Penalty,” or the total amount of electric-vehicle-specific taxes and fees that a driver must pay when charging their vehicle at a public Direct Current Fast Charger station during the course of a single calendar year, as compared to an equivalent gasoline-powered-vehicle driver.
“Our results show that EV drivers in 36 states, including the District of Columbia, pay more in taxes than drivers of gasoline-powered vehicles,” the report states. “Of these 36 states 16 pay more than a $150 EV penalty.”
Utah had the highest penalty at $368.76 per year, followed by Georgia at $325.61 per year and Kentucky at $260.23 per year. Oregon had the lowest electric vehicle penalty, with drivers paying on average of $119.49 less in taxes and fees compared to equivalent ICE-based-vehicle drivers.
The report urges more transparent taxing at electric charging stations and tax policy that keeps pace with electric vehicle adoption. Of course, the study indicates that these figures assume that a driver charges exclusively at a quick charge station, which is not always the case. Nevertheless, the true cost of electric vehicle ownership will undoubtedly become clearer as adoption rates continue to increase.
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Comments
Cost me $894 to get new plates in WA today, though $507 of that is an idiotic metro transit tax that was pushed through with deceptive voter information (I don’t know anyone that voted for it and don’t use any of their services).
The “electrification” line item on the registration is $225.
I voted for it. And used it to get to sea tac airport last week.
If you drive a 8000 lb rivian, you should pay as much taxes as a super duty, not a Colorado. If you drive a 5000lb model S, your taxes should be on par with a suburban, not a Malibu. You have a significant weight that is detrimental to the roads. Pay for it.
For the record, my EV weights under 4,500 lbs. I have no issue paying $150-$200 a year for infrastructure maintenance, but I think it should be a weight x mileage cost not a flat fee.
And if you drive a Hummer EV, you should pay as much as a Class-3 box truck.
Good. Insurance rates should be MUCH higher too. All more roadblocks that were never considered before the rush began by automakers and many early adopters. And we still see at least one new one a day. Hysterical.
Yes can be an issue. Read just recently that EV’s are more likely to be total’ed by insurance in an accident as repair costs are higher. Ask Hertz. Angela Chao (Elaine’s sister, Mitch McConnell’s wife) died recently in an X. Contributing to the loss was first responder’s were afraid to go into the water initially. Responder’s were afraid they would be electrocuted by her Tesla X. She accidentally put it in reverse instead of drive and drove into water submerging the vehicle. Fear of electrocution may cause untrained responders to let you go. I know I wouldn’t go near an EV in water. Between lithium being exposed to water and erupting into fire and electrocution, no thanks.
So far, my insurance has been lower going from a couple year old similarly sized ICE vehicle to an EV. Time will tell whether the rates increase at the same proportion as ICE vehicles (because they always increase year over year).
Welp! There goes a nice chunk of those long term savings over an ICE making the extra cost of an EV “worth it”…
Yes and once those fees become mileage based to replace gasoline taxes then we will have more parity. Except for the government bribe for the original purchase.
ICE vehicle drivers pay 25-75¢/gal fuel tax plus applicable sales tax, so EV drivers should pay as well as they use the same roadways. Highway maintenance isn’t free.
I wouldn’t mind if it was equally applied. But these are usually flat rates not based on mileage so people that don’t drive much per year get extra penalties. Just need to go to a per mile road usage fee.
Interesting that the EV industry is complaining about paying taxes when many of these cars got $7500 tax credits to begin with! How many years is it going to take to make up the difference?
The social cost of driving a gas car is about $5/gal. That an externality cost of about $35,000 for the life of the gas car. How long does that take to pay back?
(And that just the health costs, not the costs of wars and military needed to protect oil sources and trade routes, nor the costs of climate impact mitigation)
Good, since they aren’t paying fuel taxes. Hopefully that money is going to pay for road maintenance, though. If it isn’t that’s not right.
You know that gas taxes in most states only cover like 50% of the revenue needed for roads and bridge repairs and maintenance? The rest comes from other tax sources like sales tax and property taxes that everyone pays.
Yeah. It’s kind of BS. I don’t mind paying my fair share, but oil interests managed to convince (bribe) politicians that these taxes were needed. And somehow they think all EV owners are wealthy so, screw they should pay more.
I pay $225/yr just in additional taxes for my EV.
The gas tax is $0.49/gal. My EV gets equivalent of like 130mpg. That would be like $40/yr.
Even if I was driving a typical ICE with 25mpg, it’s only $200/yr.
In California, they want EVERYONE to pay EV tax, whether you drive an EV or a gas/diesel powered vehicle (and the gas/diesel vehicle owners will still be paying fuel taxes- which are diverted to other uses- i.e. Bullet Train to nowhere, lining the pockets of the people the Dems put in to office, etc.)