Washington State Mulls Taxing Electric Eco Autos
Electric automobiles may be the wave of the future, meaning states will be the first to lose out on precious gas tax revenues. Washington State has taken the lead, jumping ahead of even the federal government to propose slapping taxes on the vehicles to compensate for the fact that they do not pay gasoline taxes.A brief word about gas taxesMany Americans look at the price per gallon of gasoline and marvel at how much it costs without realizing that - thanks to the federal and state government, the cost of gas is much higher than its actual price. Federal tax is 18.4¢ per gallon and state tax compounds that. In Washington State, the state gasoline tax is an extra 37.5¢ per gallon, according to thestate government.This means that 55.9¢ out of the price of every gallon sold in Washington State goes to taxes, making government, not “big oil” the largest energy profiteers.Now, back to Washington State...When a driver chooses to buy an electric vehicle, they obviously will not pay the 37.5¢ per gallon tax to the state, leaving the government, already strapped for cash, scrambling to close the gap.According to an AP report published byYahoo, the Washington State government is thinking about imposing the nation’s first tax on electric vehicles. So far, officials are pondering a $100 per year levy, which doesn’t sound so bad now, but as more electric vehicles take to the roads, that tax will necessarily skyrocket to compensate for the loss of gasoline tax revenue.Competing proposalsAlthough Washington has proposed a flat fee per electric vehicle, other states are pondering the implementation of a per-mile fee that would collect taxes from users based on how much they use the state’s roads.It’s not just electric vehiclesState revenues are plummeting as more fuel-efficient cars take to the road. These cars use less gas and take a chunk out of state revenue every time they pass by the gas station without fueling.According to the AP, Washington estimates that drivers go travel about 12,000 per year in the state, making each driver pay about $200 per year in gasoline taxes based on a 23 mile-per-gallon car.With automobiles now getting 35 or more mpg, the state’s budget deficit has expanded. Compounded by cars that use no gasoline at all, it’s easy to see why Washington, other states and the federal government will soon find ways to make electric vehicle owners pay their “fair share.”
