Alabamians, take action! If you drive an electric vehicle (EV) or hybrid, you shouldn’t have to pay $150 - $250 per year for the privilege. Alabama Governor, Kay Ivey has proposed legislation that would raise state fuel taxes including a tax on electric and hybrid vehicles. Tell Gov. Ivey, no new taxes on energy-efficient vehicles!Guest Blog and Kate Tracy | March 5, 2019
This guest blog was written by Daniel Tait, Chief Operating Officer of Energy Alabama, who is guiding the organization’s mission of accelerating Alabama’s transition to sustainable energy. To learn more about Energy Alabama, click here.
These taxes are intended to pay for infrastructure improvements, which are undoubtedly good for Alabama. However, Alabama can do better than charging EV and hybrid owners unfair and unreasonable flat taxes and we believe it should not go into effect as written in the proposed legislation.
- As proponents of the bill argue, EVs drivers are indeed paying less to fund infrastructure than their gas-powered counterparts. The funds for infrastructure improvements come from gas taxes, and EV drivers don’t pay gas taxes for obvious reasons. However, their fair share is closer to $50-$75 per year, rather than $250.
- Additionally, when someone switches to electric, they begin paying more electric state tax. By adding this flat fee, we are double taxing EVs. Fair share ≠ double taxation.
- A portion of the increased electric tax revenue should go to pay for roads and bridges.
- Alabama should be ENCOURAGING EVs, if for no other reason than we manufacture EVs here. Double taxing EVs is a tax on Alabama’s automotive industry.
- The proposed bill uses $100 of the $250 EV tax to fund electric infrastructure. This is a positive provision in the bill, assuming the public gets a say in where the chargers go, but still leaves EV and hybrid drivers with 2-3 times the burden as opposed to other transportation.
Instead of resorting to flat fees that do more harm than good, legislators should look at the true structural changes that are needed to fix problems for the long-term.
We’re encouraging our legislators to look at one of three options:
- A VMT tax. Essentially, you use it, you pay for it.
- Dedicating the increase in the electric tax revenue to roads and bridges.
- Lowering the flat fee to between $50-$75. This should be a last resort as it is not a true structural fix.
If you want to help, please take a few minutes to sign this petition calling on our legislators to rethink this unfair tax on electric and hybrid vehicles.