Oregon's electric car owners shocked by proposed bill that would tax their cars

Oregon Live ^ | April 10, 2011 | Joseph Rose

[Brilliant]

Since December, John Duncan's daily commute from Wilsonville to Portland has been like something from a sci-fi movie.

He's a solitary eco-driver -- the first and only owner of Nissan's futuristic all-electric LEAF in Oregon -- who knows his day of reckoning is just down the road.

"I figured the state would find a way to get the gas taxes that I'm no longer paying," said the Portland Community College theater arts teacher. "But I'm hearing about a new tax that will be something like $1.43 a mile. Really? Wow!"

Yep. Wow! Of course, that's not exactly accurate. Oregon lawmakers are actually considering a road-usage charge of 1.43 cents -- not dollars -- per mile for drivers of electric and plug-in hybrid vehicles.

Among those drivers, the "EV fee," HB 2328, is sparking all kinds of confusion and concern as it cruises through the Legislature.

Will they need to buy an expensive gizmo so the state can track mileage? (No.) Can the government really repossess someone's plug-in Prius for not paying? (Yes.) Is the tax fair? (Depends on who you talk to.)

Opponents worry the state is pushing buyers away from nonpolluting electric vehicles just as they are beginning to build momentum. John Christian, chair of the Oregon Electric Vehicle Association, said he understands the need for the fee. But he thinks lawmakers should wait until the number of electric vehicles on the road hits at least 25 percent and greenhouse gas emissions come down.

"What's the message they're sending?" he said. "With one hand, they're offering a tax rebate to get you to buy an electric car. With the other, they're proposing a new tax. It looks like money-grubbing."

leaf2.jpgView full sizeBenjamin Brink/The OregonianJohn Duncan's Nissan Leaf sits in his garage in Wilsonville. The hatch popped open on the front of the car allows him to plug it in for a charge. Duncan is the first person in Oregon to own a Leaf, and is concerned about a bill in the legislature that would charge him 1.43 cents per mile in taxes. But with everyone else paying a 30-cent-per-gallon gas tax to build and repair roads, it would be unfair not to move forward with the legislation, said Sen. Bruce Starr, R-Hillsboro.

"It's the backbone of our transportation infrastructure: Users pay," said Starr, a key supporter of the bill. "This is not about penalizing electric vehicle owners. But why should they get a tax-free ride?"

Starr also noted that EV owners benefit from publicly-funded charging stations popping up in Oregon cities and along the Interstate 5 corridor. On Friday, U.S. Transportation Secretary Ray LaHood announced a $2 million federal grant to build 20 more stations in the Portland area, allowing electric vehicle drivers to travel longer distances.

In Salem, the House Transportation Committee has voted in favor of the bill, which applies to electric and plug-in hybrid vehicles starting with 2014 models. It's awaiting a hearing by the Revenue Committee.

Oregon, the first state in the union to charge a gas tax for road maintenance in 1919, is one of three states -- along with Washington and Texas -- exploring different ways to bring electric vehicles into the revenue mix.

Since the first hybrids began appearing on roads a decade ago, Oregon has worked more than any other state to study how new technology and improving gas mileage could shrink revenue, said James Whitty, an ODOT alternative-funding manager.

Less than 1,000 of Oregon's 3.2 million passenger vehicles are currently plug-in hybrid or electric. By 2021, however, the number is expected to spike to 75,000, said Whitty.

Under HB 2328, an EV owner would pay about $172 a year for a car driven 12,000 miles.

"We're talking roughly the same amount as the gas tax paid on a vehicle that gets (the average mileage of) 21 mpg," Whitty said.

Sounds reasonable, said Gary Graunke, a longtime hybrid driver who expects to join Duncan as the owner of a 100-miles-per-charge LEAF next week. But Graunke is struggling with other parts of the bill. A provision allowing the state to seize and auction vehicles belonging to those who don't pay is "overly draconian," he said.

"It's also not clear if they'll make me buy some $500 gadget for my car to track the miles," Graunke said. "Our vehicles are already more expensive to buy."

Before $9,000 in federal and state tax credits, the price of a 2011 Nissan LEAF starts at about $32,000. By comparison, a similar-size Toyota Corolla starts at $15,250.

ODOT officials said they are developing technology –ranging from smartphone apps to programs utilizing GPS systems built into the electric glow of EV dashboards – to report mileage without extra costs. Drivers could also receive refunds for miles driven outside Oregon.

Even if it's not $1.43, Duncan thinks the proposed tax is "punitive." He said he pays only a penny per mile in gas taxes when he drives his other car -- a 1997 Saturn SL. His neighbor pays even less in his fossil-fueled Mini Cooper.

Duncan prefers the proposal that Washington lawmakers are considering -- a flat, easy-to-collect $100 annual fee for electric vehicle owners.

After years of Oregon working with the federal government, power companies and automakers to get people into electric vehicles, Duncan said, "members of the Legislature have turned around and tried to do exactly the opposite."

[Brilliant]

You don't suppose the liberals are doing the bait and switch on electric cars, do you? First they argue that you should buy an electric car because you'll save on gas, then they tell you that you still have to pay the gas tax, though, which is a large chunk of the cost of gas.

[null and void]

Naaaahhhh, the liberals would never try to trick us, would they???

[Howie66]

We should propose a “special” tax on libtards.

[Sacajaweau]

Thy’ve been talking about taxing mileage for a loooooooong time.

[Brilliant]

Well, since it’s Oregon and their victims are electric car buyers, I’d say they are tricking themselves.

[Diogenesis]

[rolling_stone]

so where do they get the electricity to charge these vehicles? How is that electricity made?

[sport]

Only on days that end in “y”.

[Yo-Yo]

Even if it's not $1.43, Duncan thinks the proposed tax is "punitive." He said he pays only a penny per mile in gas taxes when he drives his other car -- a 1997 Saturn SL.

I don't see what Duncan is complaining about. He's only able to drive his Nissan Leaf about 30 miles a day, tops. On a road trip, he could easily put 500 miles or more on his Saturn.

[NWFLConservative]

" "I figured the state would find a way to get the gas taxes that I'm no longer paying," said the Portland Community College theater arts teacher. "But I'm hearing about a new tax that will be something like $1.43 a mile. Really? Wow!" "

Reality BITES, doesn't it, prof? It doesn't even cost you anything to recharge your little toy car at work either does it? Maybe you can write a play about your traumatic experience and entitle it "The Big Bad Liberals Lied to Me"

[oh8eleven]

Thy’ve been talking about taxing mileage for a loooooooong time.
They already do via the gas tax. The more miles you drive, the more gas you use, the more taxes they collect.
A mileage tax would be double taxation.

[SIDENET]

I think these libs need to "pay their fair share".

LOL.

[JimRed]

Elections have consequences. Keep voting in the same-old, and you’ll keep getting the same-old.

[null and void]

Easter and Christmas are safe?

[bray]

Thought commie libs liked taxes??

[Venturer]

Everyone that uses the highways should pay in some form to keep them up.

$1.43 a mile sounds a little on the high side.

Thats $143 dollars to drive a hundred miles. A little pricey.

[NWFLConservative]

Pretty much how I figured he would look.......

[headstamp 2]

Just write in your last year’s vehicle mileage on this here state income tax form......

[isom35]

It is patriotic to pay taxes. I think Joe Biden (Bite-me) said that.

[sport]

I would like to say yes, but, nope.