Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
WASHINGTON—The House Committee on Transportation & Infrastructure is considering a proposal to impose a new $250 annual registration tax on electric vehicles (EVs) as part of the budget reconciliation bill.
The Electrification Coalition (EC) has sent letters to Committee Chairman Sam Graves and Ranking Member Rick Larsen, urging the committee to reject this proposal. EC Executive Director Ben Prochazka has also issued the following statement in response:
“While all drivers should pay their fair share to fund transportation infrastructure, this proposal to create a $250 annual registration tax on EVs puts an unfair and punitive burden on EV drivers.
“The average driver drives approximately 12,000 miles per year. A gas-powered vehicle achieving 25 miles per gallon would burn 480 gallons of gasoline annually. At a federal gas tax rate of 18.4 cents per gallon, that driver pays just $88.32 per year into the Highway Trust Fund. An EV tax of $250 per year would be nearly triple that amount.
“Furthermore, this does not address the underlying issue of the structural insolvency of the Highway Trust Fund. The gas tax has not increased since 1993 and is not indexed to inflation, which is why the fund has required more than $270 billion in general fund bailouts since 2008.
“EVs benefit U.S. economic and national security. They are powered by a domestic and diverse grid, are creating over 230,000 U.S. jobs, and ensure our auto industry remains competitive in a global market that China currently dominates. Consumers should have the choice to drive EVs without being penalized with higher taxes.
“Congress should pursue comprehensive, fuel-neutral solutions to the Highway Trust Fund insolvency as part of the ongoing surface transportation reauthorization, rather than putting an unfair tax on some drivers.”
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org