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Last month Virginia governor Bob McDonnell signed a gas tax costs that’s actually attracted attention from states around the country. The new tax legislation lowers the gas tax for Virginia motorists, while at the exact same time slapping a $64 yearly flat tax on motorists of hybrid vehicles.
Virginia legislators, like their counterparts in various other components of the country, are grappling with declining revenue from gas taxes. This drop is the outcome of a range of elements, from historically stagnant gas tax rates to a dip in the quantity of driving individuals have actually been doing general considering that the onset of the economic crisis.
With the increasing popularity of hybrid and electric automobiles, legislators have been forced to get imaginative to continue to extract tax profits from motorists. Virginia legislators reasoned that since hybrid and electric vehicle owners are producing as much wear and tear on roads and bridges as motorists of standard automobiles but are paying less into the state’s kitty to repair roadways, the $64 yearly tax helps to plug the hole in Virginia’s coffers.
Virginia is not really the only state to consider slapping an annual tax on green vehicles. According to USA Today, Texas, New Jersey, Washington, Massachusetts, Idaho, and Arizona are considering comparable regulation. Virginia is distinct, though, in its relocate to reduce the gas tax on the whole while at the exact same time creating a new tax for a subset of motorists. Ecologists claim that this specific action appears to have actually been made to disincentivize the investment of earth-friendly automobiles, but proponents contest that, in order to keep Virginia streets safe, they are entrusted really few choices.
Would a tax like Virginia’s inhibit you from purchasing a green vehicle?