Penalized for driving a fuel efficient car

[Car Nut]

I just updated my Virginia state license plates. I was expecting the usual annual fee of $40.75, but this time there was a "highway use fee" of $31.00 added on. When I asked the DMV clerk why, she shrugged her shoulders and said she didn't know. She suggested I contact the head DMV through Facebook, which I did. They told me that any vehicle rated at better than 25 mpg was being accessed an additional charge, because the state wasn't making as much in sales tax off of the gas being purchased. Supposedly the tax charged at the pump goes towards road improvements and upkeep.

We also own a hybrid, which we've been getting hit for about $60 a year for extra road use tax already. I've never been charged that fee for my Mirage, or any of my Geo Metros in the past.

I guess it's just getting more costly to save the earth and all that now. Lol

[Fummins]

That's crazy! I can see insurance being higher but road tax/registration.......Screw it, go buy an old v10 excursion I guess??

They no longer give out new expiration date stickers out here, had I known that I wouldn't have bothered renewing my truck for 2 years. It's usually hooked to a trailer anyways.

[Space Wolf]

because the state wasn't making as much in sales tax off of the gas being purchased.

Any idea how much tax is paid on a liter of gas?

(Facebook? Doesn't you government have normal communication channels?)

[MacClyver]

https://igentax.com/gas-tax-state/#table
Looked it up for you: 4.28 ₵/L in Virginia

Here in WI we pay 8.69 ₵/L, luckily no efficient car bs though, so long as its not a hybrid or gasp electric. If it wasn't for the $100 annual EV fine surcharge I might've been a IMiev owner by now.

[Space Wolf]

https://igentax.com/gas-tax-state/#table
Looked it up for you: 4.28 ₵/L in Virginia

Oh wow. I pay €0.82/L ($0.98/L), and then I pay 21% VAT over that tax. But, on the other hand, I have a tax benefit because I have an economical car. Not only do I pay less fuel tax (because I'm using less fuel), I also (indirectly) paid less BPM (tax on (new) passenger cars and motorcycles) which is dependent on the expected CO₂ emission. The difference in tax between a 25mpg and a 50mpg car is about 10k€. +21% VAT on that.

Here in WI we pay 8.69 ₵/L, luckily no efficient car bs though, so long as its not a hybrid or gasp electric. If it wasn't for the $100 annual EV fine [i]surcharge/i] I might've been a IMiev owner by now.

Is that $100/year really a showstopper for purchasing an electric car?

[AtomicPunk]

I just updated my Virginia state license plates. I was expecting the usual annual fee of $40.75, but this time there was a "highway use fee" of $31.00 added on. When I asked the DMV clerk why, she shrugged her shoulders and said she didn't know. She suggested I contact the head DMV through Facebook, which I did. They told me that any vehicle rated at better than 25 mpg was being accessed an additional charge, because the state wasn't making as much in sales tax off of the gas being purchased. Supposedly the tax charged at the pump goes towards road improvements and upkeep.

We also own a hybrid, which we've been getting hit for about $60 a year for extra road use tax already. I've never been charged that fee for my Mirage, or any of my Geo Metros in the past.

I guess it's just getting more costly to save the earth and all that now. Lol

Never underestimate politicians creativity in finding new ways to tax you so they can have more money to play with.

[Car Nut]

Never underestimate politicians creativity in finding new ways to tax you so they can have more money to play with.

Well said!

[Dirk Diggler]

We got a bs ad valorum tax here in Georgia. If you move to the state/ or a got a new car and you needed a new tag, you had to pay 7% of your car's worth first. It used to be you just paid $70 and got yourself a new Georgia plate and registration but the car dealers lobbyist were losing out a lot to private sales because it was a lot cheaper to register a car bought from a private owner vs the dealership. It was $500 for me to register my old Subaru Outback when I bought it used from my step mom in South Carolina. I remember waiting in line at the tax register office and this girl in front of me in the line was told it was going to cost her like 2 grand to register. She was floored. Just some kid that moved to Atlanta and getting hosed.

[Basic]

We got a bs ad valorum tax here in Georgia. If you move to the state/ or a got a new car and you needed a new tag, you had to pay 7% of your car's worth first. It used to be you just paid $70 and got yourself a new Georgia plate and registration but the car dealers lobbyist were losing out a lot to private sales because it was a lot cheaper to register a car bought from a private owner vs the dealership. It was $500 for me to register my old Subaru Outback when I bought it used from my step mom in South Carolina. I remember waiting in line at the tax register office and this girl in front of me in the line was told it was going to cost her like 2 grand to register. She was floored. Just some kid that moved to Atlanta and getting hosed.

In good ol Kentucky, we get the privledge of paying sales tax on our vehicles EVERY YEAR! Frigging cork stickers...

[PityOnU]

Meh. This is one of the cases where living in an advanced society basically means "paying rent." Having nice things isn't free. Roads cost what they cost to build and maintain. If they lose a revenue stream somewhere, they need to find a new one somewhere else.

I would be interested to see what would happen if they just got rid of all these different tax codes and just charged everyone a flat rate for the right to be a citizen. Being rich doesn't mean you use roads more. Being poor doesn't mean you go to the park less.