In a rational world, we would pay for road construction and upkeep by charging cars, trucks and motorcycles on a per-mile basis with a weight multiplier, thus reflecting the actual usage and damage that we do. It could also include a small set fee to reflect the fact that we depend on roads existing even when we don’t use them.
But the world is far from rational so we use gasoline tax. Electric vehicles, of course, don’t pay that tax which freaks out the ICE drivers. Several states are instituting annual fees on EVs to “make up” for that loss. New Hampshire has just started a $100 annual surcharge for EVs and $50 on plug-in hybrids during annual registration.
That feels like a reasonable amount, I guess, but I don’t really know.
Here’s an analysis from CleanTechnica based on Texas’ outrageous EV fees ($400 onetime and $200 a year) – they and Consumer Reports estimated that between $35 and $120 a year is OK, depending on your assumptions.
According to the New Hampshire Department of Safety, the average state driver covers 12,000 miles per year and averages 25 miles per gallon. With a state gas tax of 24 cents per gallon, that’s a payment of $115 a year in gasoline taxes for this average scenario.
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If an ICE driver in NH drives 5000 miles a year and gets 30 mpg, they pay $40 in tax, or .24 per 30 miles (gallon). If an electric car driver does the same, they pay $100 and a plug in hybrid driver $50? Of course, the inverse is true too. If an electric or hybrid driver drives a large enough amount of miles in a year they end up paying less in taxes than an ICE driver who does the same miles. Why should ICE, electric or hybrid drivers potentially be taxed at different rates per mile driven?
Ditch the gas tax and either charge every car owner a surcharge on registration or per mile driven.
I have a plug in hybrid Rav 4 Prime and was not aware of this new “fee ” until reading your email. Thanks for the heads up.
Knowing this I will be certain to use the EV mode as much as possible.
I just wish the license fees for heavy pickup trucks would reflect the wear and tear they cause on our roads.
An average (12k miles/yr @ 25mpg) dragged down by a bunch of inefficient vehicles was used to apply the gas tax to vehicles that routinely get over 100 MPGe, or in other words, you need to drive over ~42,000 miles a year to come out ahead of what you’d pay in taxes from buying the equivalent amount of gas.
I’d very much prefer a road tax based on actual miles driven per year and weight of vehicle, with no subsidies for the trucking industry. A single truck puts as much wear on a road as 9,000+ cars, and one analysis found that they do 99% of the damage to roads while footing only 35% of the bill:
https://truecostblog.com/2009/06/02/the-hidden-trucking-industry-subsidy/
NH should call it what it is, an EV/PHEV penalty.