You didn’t think you would get away without paying for taxes on gas you don’t use, did you?

Given how governments of many countries are pushing customers to opt for EVs by giving subsidies, it looked like the running cost of EVs would be very low. But that doesn’t seem to be the case with the California state government. Since the lawmakers are not earning the gasoline taxes from EV owners anymore, they have come up with a ‘solution’ that may require you to pay a mileage-based fee. How does that sound?

The State Needs To Take Care Of Its People Afterall

2018 Nissan Leaf Drivetrain
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From the government’s point of view, this seems fair. Ever since customers started opting for EVs, the state is seeing a dip in the revenues that fund for the maintenance and repairs of the roads.

The Institute of Transportation Studies at the University of California, Davis came up with a report wherein it proposed that EV owners should pay a mileage fee to keep the gasoline and diesel taxes in check.

According to the report, California has a higher adoption of EV rate when compared to other states in the U.S. The report bases its conclusions on former Governor Jerry Brown’s vision of having five million zero-emission vehicles on the roads in California by 2030 as part of the carbon-pollution reduction effort. This goal also includes spending $2.5 billion to build EV charging and hydrogen fueling stations across the state.

The Government Giveth And The Government Taketh Away

Your EV is Cutting into the Tax Dollars California Politicians can Pocket, So Get Ready to Pay a Mileage-Based Fee for EVs Exterior
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California currently funds road repairs from the fuel taxes collected and annual registration fee for zero-emission vehicles that it will start collecting from 2020.

The report states that the registration fee collected will be inadequate to fund the state's infrastructure needs, given the rising numbers of EVs set to hit the roads.

It also notes that the fee does not favor the drivers of plug-in hybrids, who must pay both, gasoline taxes and the zero-emission vehicle registration fee. It further states that the flat $100 fee is wholly disconnected from actual miles driven, in contrast to gasoline taxes, which reflect the distance a motorist drives. The researchers conclude the report by saying that setting up a road-user charge would bring higher costs for hardware and collecting fees; it would be the easiest and least-costly way to transition away from gas taxes.

What They Had To Say

Your EV is Cutting into the Tax Dollars California Politicians can Pocket, So Get Ready to Pay a Mileage-Based Fee for EVs High Resolution Exterior Wallpaper quality
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Alan Jenn, report author, said, "California now has the opportunity to support alternative funding mechanisms.” "Our study finds that a per-mile road charge, designed specifically for zero-emission vehicles, is a relatively low-cost and sustainable solution to funding our roads."

Our Take

Your EV is Cutting into the Tax Dollars California Politicians can Pocket, So Get Ready to Pay a Mileage-Based Fee for EVs Exterior
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As of now, this is a mere proposal.

There is no denying that the funds collected via gasoline and diesel taxes have taken a hit since EVs have arrived.

And, with increasing sales of these silent cars, the tax collection is expected to decline furthermore. Now, whether or not this proposal will be accepted, EV owners will be made to pay taxes one or the other way. Are you in favor of this proposal or not? Share your thoughts with us in the comments section below.

Further Reading

2016 Tesla Model X High Resolution Exterior
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Read our full review on the 2018 Tesla Model X.

2018 Tesla Model 3 Exterior High Resolution Wallpaper quality
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Read our full review on the 2018 Tesla Model 3.

2017 Tesla Model S Exterior
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Read our full review on the 2018 Tesla Model S.

2018 Nissan Leaf
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Read our full review on the 2018 Nissan Leaf.

Source: University of California

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