Republicans In Congress Want a Flat $200 Annual EV Tax
The Republican chairman of the House Transportation and Infrastructure Committee is proposing a new annual federal vehicle registration fee that aims to raise funds from electric vehicle (EV) drivers. This proposed tax of $200 per year for fully electric vehicles and varying amounts for hybrids and combustion vehicles, has ignited a heated discussion around its implications and fairness.
Key Points
- New federal vehicle registration fee of $200 proposed for full EVs, $100 for hybrids, and $20 for combustion vehicles.
- The tax is intended to be inflation-adjusted and collected by the states, set to expire in 2035.
- Critics argue low-mileage EVs may face a higher tax burden than larger conventional vehicles.
- The proposal is expected to contribute approximately $110 billion to the Highway Trust Fund by 2035 but will still leave it short of its commitments.
- Exemptions exist for commercial vehicles and farm vehicles, potentially leading to tax avoidance strategies.
Why should I read this?
If you own an electric car or are considering one, this article is a must-read! It sheds light on potential costs that might come your way and the broader impacts on EV adoption. Plus, it dives into the ongoing tussle between eco-friendly vehicles and traditional combustion-powered ones. Don’t let changes creep up on you without being in the know!