Own an electric car? You may be paying 'non gas consumption' taxes soon

Section 30B of the tax code provides a tax break for purchasing a fuel efficient car; but you may be charged a per mile tax if you are not buying enough gas. Photo: Electric Car charging c. 1919

WASHINGTON,  January 6, 2013 ― Starting in February, owners of electric cars in the state of Washington will be assessed an additional tax on top of the Obama-care taxes and increased payroll taxes.

They are being penalized for not submitting their pound-of-flesh at the pump to the ever voracious governments that will find a way to tax everything you do, or don’t do. 

The less than one percent of drivers utilizing an electric vehicle will have one more reason to think twice before trying to save the world: per-mile taxation.

The Oregon legislature will consider a similar bill in its upcoming session, with the addition of fuel efficient cars to the all-electric cars. Although the rates are not yet defined, logic would assume it would be based upon tax rates on a gallon of gas versus the reduced consumption.

Illustration courtesy of plugincars.com (click to enlarge)

Illustration courtesy of plugincars.com (click to enlarge)

Once shown that additional revenue is available, other states and the federal government will likely follow suit.

To get some sort of an idea what this will probably cost you at some point if you decide to buy a fuel efficient car, lets look at the current national averages for gasoline taxes and fuel efficiencies for vehicles.

Based upon 12,000 miles per year of driving: 

The national average for total taxes on each gallon of gas you buy is $.50.

The average gas mileage of the vehicles on the road (not including tractor-trailers) is 20.0 miles per gallon, equating about 600 gallons consumed per year.

The 2013 Prius C gets 53 miles per gallon, which would consume 226 gallons of fuel over that same distance travelled.

According to some lawmakers, they are being robbed of $187 per year in tax revenue by your efforts to save money, the environment, or whatever drove you to buy a fuel efficient vehicle, or $374 for an all-electric vehicle.

So let us assume that those tax losses, plus an additional 10 or 15 percent for the bureaucratic agency that would be created to take your money, would be about right for a new tax. 

As a part of the Obama job stimulus, this makes sense; it would create more Government jobs.

In 1900, 34 percent of the cars on the roads in our largest cities were electric. The Electric Vehicle Company was the largest car manufacturer in the country. Some bad business decisions put them into bankruptcy, causing many influential investors to lose a lot of money. They then swore off the company, essentially killing the entire industry.

Now that this sector of manufacturing is struggling to regain traction in our society, lawmakers are doing their part to slow it down, as sales of the already more expensive electric vehicles will have another financial roadblock for potential consumers to consider.

But beware of buying a vehicle that is not efficient enough, or the gas-guzzler tax will get you.


Illustrations from What is an Electric Car by Brad Berman for PluginCars.com  (3/14/10)

Visit the site for Mr. Bermans thorough and informative views and reviews. 

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Mike Shortridge

Mike is a former Marine who served in the Middle East. He is disgusted with both the Republican and Democratic parties, seeing them as two heads of the same beast. He writes from the conservative perspective, with a focus on making complex subjects easy to understand.


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