Staff Reports
Electric vehicles already make up 6.7% of vehicles today, and it is anticipated that they will see enormous growth over the next decade. A new tax in SB 1070 would create an annual license tax of $200 for Florida electric vehicle owners, making it one of the highest in the nation.
While there is no argument electric vehicle (EV) drivers should pay their fair share, there are two specific issues with the proposal. First, EV owners would be taxed at a significantly higher rate than drivers of traditional gas-fueled cars. Currently, Floridians who pay gas taxes pay on average $125 a year to the state, while this tax for EV owners will be set at $200.
Secondly, roughly 50% of gas taxes paid in Florida are paid by tourists. Under SB 1070, while Florida EV owners will pay a significant tax, visitors to Florida who drive electric vehicles will pay nothing.
This was the specific concern raised by Sen. Gayle Harrell, who pointed out the unfairness of giving a free ride to 127 million annual visitors and part-time residents whose vehicles are registered elsewhere — more than half of whom drive to Florida. Additionally, as the Senator noted, the tax would not apply to commercial heavy-duty trucks that cause significant wear and tear on Florida’s roads.
To date, the House has resisted considering this tax on electric vehicle owners — a tax that would jump to $250 annually beginning in January 2028.
Alexandra DySard at the Environmental Defense Fund, an international nonprofit organization with offices in Florida, recommended the state consider two policy changes.
First, DySard suggested the state look at different models for ensuring electric vehicle owners pay their share of road maintenance, including the option of levying a tax that is paid when a driver uses a commercial charging facility — a plan that would ensure tourists help pay for ongoing road needs.
Second, she urged the Legislature to set aside a portion of the tax paid by electric vehicle owners be set aside to help commercial operators expand charging infrastructure to ensure the influx of new electric vehicles does not create evacuation concerns. Her testimony cited several states like Alabama and Washington which dedicate a portion of fees towards expanding EV infrastructure across the state.
Florida’s Department of Transportation has already developed an Electric Vehicle Master Plan but would need funding to focus on rural areas and along evacuation corridors to ensure public safety and unclogged roads in emergency situations. The proposed bill does not dedicate revenue to achieving the state’s goal.
The proposed license tax will require a two-thirds supermajority vote in the House and Senate to pass. The vote will be closely watched by electric vehicle owners, manufacturers and dealers in Florida, who have a significant stake in the outcome.
4 comments
Dont Say FLA
April 27, 2023 at 10:43 am
Given that your average Tesla weighs as much as your average Yukon XL, no, this is not remotely unfair on Tesla or other EV drivers. The unfair part is that the Yukon XL drivers pay the same as a Yugo / SmartCar / Civic / Corolla driver. Taxation should be based on gross vehicle weight. Maybe throw in mileage or at least an estimated mileage based on the meter readings of the device dispensing fuel, be it gasoline or electricity. Speeding tickets should also consider GVW. A Tesla hitting something going 85 MPH will inflict five times as much damage as a Corolla would, hitting the same thing at the same speed. Despite the wild difference in danger posed by a speeding Tesla vs a speeding Corolla, the Tesla driver pays no more per speeding ticket than does the Corolla driver. That is absolutely ridiculous and, as GOP’s love to say, “so unfair.”
Gator
May 6, 2023 at 6:11 pm
Literally everything you’ve written here is complete nonsense.
A Tesla Model 3 weighs 3,582 pounds in the most commonly-sold rear wheel drive trim. A Tesla Model Y AWD weighs 4,416 pounds.
A Yukon XL weighs 6,088 pounds and gets 16 mpg.
“A Tesla going 85 mph will inflict five times as much damage as a Corolla could” A Model 3 is only slightly larger than a Corolla, and it weighs about 500 pounds more. Damage caused in a collision comes from many factors, but when comparing the two sedans that statement is just silly. Likewise a Model Y will cause similar damage as any other crossover SUV.
The gas tax is fair because heavy gas hogs pay more tax. The Yukon XL driver driving the same number of miles as a Corolla driver pays twice as much gas tax since he consumes twice as much fuel.
This is why this new EV tax is unfair – it doesn’t consider the miles driven or vehicle size. A Hummer EV driver doing 20,000 miles a year pays the same as a retired lady with a 2014 Leaf that drives 4,000 miles a year.
I have and EV and a gas vehicle. I would have to drive my CR-V 19,000 miles a year to pay $200 gas tax. In reality I drive 5,000 to 7,000 miles a year.
David T. Hawkins
April 28, 2023 at 9:49 am
“Floridians who pay gas taxes pay on average $125 a year to the state, while this tax for EV owners will be set at $200.”
While that may be True, you gotta look at the Cost of rebuilding the Power Grid to handle all those EV’s and who pays for that? Us Tax Payers do because it will be slipped into our Electric Bill each Month.
Gator
May 6, 2023 at 5:51 pm
Do you stand out in front of every new neighborhood and strip mall under construction and protest the electricity they’re going to need? The electrical needs from population growth far outstrip the needs of slowly increasing EV charging. The power grid does not need to be “rebuilt.” Most owners charge at night, especially if rates are lower then. After dark utilities have plenty of excess generating capacity. Offices and other businesses are closed and ACs run far less than during the day. Utilities LOVE EVs because they can sell more electricity at times when they normally sell very little.
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