California passes new fuel taxes

[spuwho]

And electric cars start getting taxed now......

Per Motor Trend:

http://www.motortrend.com/news/california-raises-gas-tax-vehicle-fees-fund-road-repairs/

Bill will cost drivers less than $10 per month, Brown says

California has approved a bill that will increase gas taxes and vehicle fees to fund transportation projects across the state.

On Friday, California Governor Jerry Brown signed off on a bill that will raise $5.2 billion a year for mass transit initiatives as well as road and bridge repairs. The bill ushers in the  first gas tax increase the state has seen in 23 years.

The base excise tax will increase 12 cents per gallon on gasoline and 20 cents per gallon on diesel fuel. A variable excise tax is set at 17 cents. The gas and diesel taxes take effect November 1, but it won't be until 2020 that electric car owners will pay $100 in lieu of a gas tax every year.

Annual vehicle fees will increase anywhere from $25 to $175 depending on the value of the car. This measure goes into effect January 1, 2018. According to Brown, the new taxes and fees should set most drivers back less than $10 per month.

Over the next 10 years, California expects to raise $52 billion, of which $34 million will go toward repairing roads, bridges, highways, and culverts, while $7 billion is earmarked for mass transit. Expect improvements along the 14 freeway in Santa Clarita, the 170 freeway in the San Fernando Valley, and the 605 between the 10 and 210, reports the Los Angeles Times. Bridges along the 5, 710, and 210 will also receive repairs.

"Safe and smooth roads make California a better place to live and strengthen our economy," Brown said. "This legislation will put thousands of people to work."

Meanwhile, Republicans aren't having it. "Gov. Brown and Capitol Democrats just gave us the largest gas tax increase in state history—a deal so bad they needed $1 billion in pork to buy the votes to pass it. California deserves better," Assembly Republican leader Chad Mayes said in a statement.

[Sonic101]

Is there a reason why they make the gas tax a fixed value instead of some percentage? Wouldn't having it as a percent avoid having to raise it periodically to keep pace with inflation?

[remc86007]

But if they made it a percentage of the gallon price, it would be much harder to anticipate the future revenue. Also, this way they get to tax the wealthier individuals with high-octane requiring vehicles a relatively smaller amount. Gotta keep the rich rich...

[spuwho]

But if they made it a percentage of the gallon price, it would be much harder to anticipate the future revenue. Also, this way they get to tax the wealthier individuals with high-octane requiring vehicles a relatively smaller amount. Gotta keep the rich rich...

Or it means high octane is a ripoff and the rich are paying for essentially nothing.

[remc86007]

That 10hp though...

[Sonic101]

But if they made it a percentage of the gallon price, it would be much harder to anticipate the future revenue. Also, this way they get to tax the wealthier individuals with high-octane requiring vehicles a relatively smaller amount. Gotta keep the rich rich...

Or it means high octane is a ripoff and the rich are paying for essentially nothing.

If your car doesn't require it, yes, you're wasting your money. My turbocharged Subaru for example requires at least 91 octane, so I live the premium life.

[spuwho]

But if they made it a percentage of the gallon price, it would be much harder to anticipate the future revenue. Also, this way they get to tax the wealthier individuals with high-octane requiring vehicles a relatively smaller amount. Gotta keep the rich rich...

Or it means high octane is a ripoff and the rich are paying for essentially nothing.

If your car doesn't require it, yes, you're wasting your money. My turbocharged Subaru for example requires at least 91 octane, so I live the premium life.

WRX I presume?

[Sonic101]

But if they made it a percentage of the gallon price, it would be much harder to anticipate the future revenue. Also, this way they get to tax the wealthier individuals with high-octane requiring vehicles a relatively smaller amount. Gotta keep the rich rich...

Or it means high octane is a ripoff and the rich are paying for essentially nothing.

If your car doesn't require it, yes, you're wasting your money. My turbocharged Subaru for example requires at least 91 octane, so I live the premium life.

WRX I presume?

Baja Turbo, but they had the same engine. I'm really just waiting for the diesel Colorado that I ordered to be delivered now.

[spuwho]

Now that California has raised fuel taxes, Trump is now floating a federal tax increase.

Similar situation, fed tax hasnt changed since 1993. Fewer gallons being sold, more electrics and LNG trucks now, so while those wheels roll the pavement, they dont supply funding for the replacement.

Amtrak needs a major funding restructure.

While Cali is still old school on transportation funding, I would like to see a new TEA model to come about nationally so we can adapt to the rapid changes coming up.

[spuwho]

INDIANA LAWMAKERS PROPOSE $150 ANNUAL FEE FOR ELECTRIC CARS

http://www.motortrend.com/news/indiana-lawmakers-propose-150-annual-fee-electric-cars/


The Indiana House Republicans wants electric vehicle owners to help pay for road repairs and have proposed a $150 annual fee for electric vehicles registered in Indiana. If implemented, Indiana will join 10 other states (Wyoming, Colorado, Virginia, Nebraska, Missouri, Washington, North Carolina, Idaho, Georgia, and Michigan) that already impose fees on electric vehicles.

The bill, submitted by Rep. Ed Soliday, would also impose a $15 annual fee for all registered vehicles in Indiana. That means electric vehicle owners would pay a total fee of $165 per year, reports ABC affiliate RTV6. The proposed electric vehicle fee would not apply to owners of hybrid vehicles. In addition to the increase in fees, the bill would increase the gas tax by 10 cents per gallon.

Your average Indiana driver driving a gasoline-powered car will pay about $63 more per year if this bill passes. The new legislation would cost electric car owners an extra $213 per year, however.

Since electric vehicles do not use gas, they do not contribute to the gas tax that helps in maintaining public roads and highways. Legislators believe that special fees on these types of vehicles will make up for this lost revenue.

Electric car advocates will argue that these new fees might dissuade some people from buying electric cars. Additionally, given the fact that there are local incentive programs and a $7,500 federal tax credit in place to promote the adoption of electric vehicles, these fees might seem counterproductive to that mission.

But fees like this don't have to be so hard to swallow, and can even be designed to benefit EV owners. According to Green Car Reports, Colorado legislators worked with electric-car advocates to create a system in which revenue from fees goes toward two separate funds, one for infrastructure and one for public charging stations.

[Tacachale]

INDIANA LAWMAKERS PROPOSE $150 ANNUAL FEE FOR ELECTRIC CARS

http://www.motortrend.com/news/indiana-lawmakers-propose-150-annual-fee-electric-cars/


The Indiana House Republicans wants electric vehicle owners to help pay for road repairs and have proposed a $150 annual fee for electric vehicles registered in Indiana. If implemented, Indiana will join 10 other states (Wyoming, Colorado, Virginia, Nebraska, Missouri, Washington, North Carolina, Idaho, Georgia, and Michigan) that already impose fees on electric vehicles.

The bill, submitted by Rep. Ed Soliday, would also impose a $15 annual fee for all registered vehicles in Indiana. That means electric vehicle owners would pay a total fee of $165 per year, reports ABC affiliate RTV6. The proposed electric vehicle fee would not apply to owners of hybrid vehicles. In addition to the increase in fees, the bill would increase the gas tax by 10 cents per gallon.

Your average Indiana driver driving a gasoline-powered car will pay about $63 more per year if this bill passes. The new legislation would cost electric car owners an extra $213 per year, however.

Since electric vehicles do not use gas, they do not contribute to the gas tax that helps in maintaining public roads and highways. Legislators believe that special fees on these types of vehicles will make up for this lost revenue.

Electric car advocates will argue that these new fees might dissuade some people from buying electric cars. Additionally, given the fact that there are local incentive programs and a $7,500 federal tax credit in place to promote the adoption of electric vehicles, these fees might seem counterproductive to that mission.

But fees like this don't have to be so hard to swallow, and can even be designed to benefit EV owners. According to Green Car Reports, Colorado legislators worked with electric-car advocates to create a system in which revenue from fees goes toward two separate funds, one for infrastructure and one for public charging stations.

Sounds reasonable.