California to Levy Taxes on Electric Vehicles by 2020 instead of Granting Incentives
, / 2012 0

Electric vehicles have turned out to be a win-win situation in this age of ever-increasing global warming. Electric vehicles not only cut down on gas consumption but also don’t emit any kind of harmful substances in the atmosphere. Keeping this in mind, governments of various countries are offering incentives in terms of land or raw materials to the EV automakers. This is because the production of electric cars will be beneficial to the humanity on a whole. But the Californian Government has come up with something contradictory despite the advantages of EVs. At a time when EVs are promoted, the golden state has decided to impose high taxes on electric vehicles. This information is not something to dwell upon as it might discourage EV automakers for further production.

The decision to levy taxes on electric vehicles is a clear indication that the Californian Government gives more importance to financial gains instead of long-term benefits for its people. The state has failed to realize that electric car's use will drastically cut down on the people's carbon consumption. Within a few years, the positive effects of this will be visible. One will notice the decrease in diseases caused due to pollution in a considerable manner. Instead of taking pride in the fact that California sells half of the electric vehicles sold in the U.S., it is using this for its monetary benefits.

California to levy taxes on electric vehicles

California will levy taxes on electric vehicles from 2020.

Effects of levying taxes on electric vehicles

The sole reason behind California’s decision to levy taxes on electric vehicles is to cover up for the money it will lose that comes from the gasoline taxes. This new tax will go into practice from the year 2020. All the models of electric vehicles that will be manufactured from 2020 onwards will have to pay this fee to the government. $100 will be charged during the registration of these plug-in vehicles. This will be followed by an annual registration fee. The annual fee is not definite as it will vary depending on the market value of the vehicle. A person buying an electric car less than $5000 will only have to pay $25. A person with an electric car which costs more than $60,000 will have to pay $175 every year.

Looking at the state's financial scenario, it isn't surprising that it also has the highest gas prices in the U.S. It is not only the owners of the electric vehicles who will have to fish out more money. By November 2017, the gasoline tax in California will go up to 30 cents per gallon. The state will also make approximately $52 billion in ten years by levying taxes on electric vehicles. The government claims that this money is for the state’s infrastructure repairs. To keep it simple, the Californian residents will have to ‘pay a price’ for trying to keep their air clean.

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