Tennessee Annual Tax on EVs

VeeDub'r

VeeDub'r

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Here's an "interesting" -- and somewhat troubling -- bit of info.

It seems that my home State of Tennessee -- the home of VW's U.S. EV production -- actually assesses EV owners $100/year over-and-above the "standard" vehicle registration fees.


Apparently this was enacted in 2017 to recoup the gasoline taxes that EV owners "avoid" paying.

Not exactly forward-thinking public policy IMO.

Seems sorta like taxing non-smokers for the tobacco taxes they don't pay.

Ref: https://afdc.energy.gov/laws/11787

I've confirmed this w/ my local vehicle registrar as well.

Would be interesting to know if this legislative "device" might be used in other areas as well.
 
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VeeDub'r said:
Here's an "interesting" -- and somewhat troubling -- bit of info.

It seems that my home State of Tennessee -- the home of VW's U.S. EV production -- actually assesses EV owners $100/year over-and-above the "standard" vehicle registration fees.


Apparently this was enacted in 2017 to recoup the gasoline taxes that EV owners "avoid" paying.

Not exactly forward-thinking public policy IMO.

Seems sorta like taxing non-smokers for the tobacco taxes they don't pay.

Ref: https://afdc.energy.gov/laws/11787

I've confirmed this w/ my local vehicle registrar as well.

Would be interesting to know if this legislative "device" might be used in other areas as well.
Click to expand...

As long as this money is used for road maintenance I'm all for it. You use the roads, don't expect others to pay for the wear you cause. Never be a burden to others is something I was taught at a young age.


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Recoil45 said:
As long as this money is used for road maintenance I'm all for it. You use the roads, don't expect others to pay for the wear you cause. Never be a burden to others is something I was taught at a young age.
Click to expand...

Virginia started to do the same thing. They started with something like a $64 surcharge per year for EVs, but they recently changed it to a graduated fee that is based upon the fuel efficiency.

In terms of road wear, I have heard that heavy trucks cause most of the road wear.
 
The problem with these flat fees is that they're not 'use-based' as gas taxes are. I have no problem paying my fair share, but that isn't.
 
As someone who owns multiple cars but can only drive one at a time and would pay more under this model, I agree, but EV owners need to pay something. Otherwise our roads go to crap.


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Based on two minutes of google fu, the $100 is comparable to what an ICE driver getting 40 miles a gallon and traveling 15,000 miles a year would pay.

And, I would hope (have followed the OP's link) that Clarity owners would be exempt since we also pay gas tax.
 
leehinde said:
Based on two minutes of google fu, the $100 is comparable to what an ICE driver getting 40 miles a gallon and traveling 15,000 miles a year would pay.

And, I would hope (have followed the OP's link) that Clarity owners would be exempt since we also pay gas tax.
Click to expand...

Then the tax is not enough. Road taxes are probably calibrated to cars getting half that mileage.


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Recoil45 said:
"... Road taxes are probably calibrated to cars getting half that mileage ... "
Click to expand...

Doing the "stubby pencil drill" ... given TN's state gasoline tax rate ... the $100 fee assessed approximates the gasoline tax on about 10k miles worth of ICE fuel for a vehicle averaging 25 MPG.

The TN legislature clearly didn't "go large" w/ the fee; but I think most would agree that the "flat fee" is at best only a stopgap measure which clearly does not even attempt to allocate the "tax bill" based on usage.
 
VeeDub'r said:
Here's an "interesting" -- and somewhat troubling -- bit of info.

It seems that my home State of Tennessee -- the home of VW's U.S. EV production -- actually assesses EV owners $100/year over-and-above the "standard" vehicle registration fees.

Apparently this was enacted in 2017 to recoup the gasoline taxes that EV owners "avoid" paying.

Not exactly forward-thinking public policy IMO.

Seems sorta like taxing non-smokers for the tobacco taxes they don't pay.

Ref: https://afdc.energy.gov/laws/11787

I've confirmed this w/ my local vehicle registrar as well.

Would be interesting to know if this legislative "device" might be used in other areas as well.
Click to expand...


interesting information
 
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