Transportation: Congress proposing an annual Federal tax on electric vehicles

Source: Congress could make EV drivers pay – POLITICO

My state, Oregon, introduced state fees for fuel efficient vehicles, beginning January 1, 2020. These fees are added to existing annual license fees. Oregon issues vehicle licenses for a 2 year period, not one, so the fee paid when renewing is twice the value shown:

a) For vehicles that have a rating of 0-19 MPG, $18.

(b) For vehicles that have a rating of 20-39 MPG, $23.

(c) For vehicles that have a rating of 40 MPG or greater, $33.

(d) For electric vehicles, $110.

The reason they charge for 2 years is it enables the state to increase the effective rate. On average, people will sell their car with one year of their license remaining. However, when sold, there is no refund. And presumably you buy a new vehicle and pay a new license fee. Same thing if you move out of state – you lose the unused portion of the fee. Now they offer a 4-year pre-paid option – don’t go there!

Oregon has also introduced a “pay per mile” license tax and says that some people may pay less fees under this scheme. When I checked the numbers for my Honda Fit, I would pay more under their pay-per-mile scheme – and I only drive about 7,000 miles per year. Sure, that pay–per-mile fee makes sense – not!

The state increased the regular vehicle license fee by 30% in 2017, and increased the state’s gasoline sales tax, which will increase every other year through 2024. The State also increased the title records fee and added a per-vehicle-sold tax on car dealers, and added a $15 tax on new bicycle purchases.

The proposed Federal tax – amount unknown – would be in addition to State license fees.