Californian Democrat and Torrance Assemblyman Al Muratsuchi has proposed Assembly Bill 1077 that would change the way California state sales taxes and vehicle license fees are assessed against cars that run on alternative fuels.
Right now, the federal government offers a $7,500 income tax credit to people who buy electric vehicles (EVs). The state of California provides a separate $2,500 rebate. Assembly Bill 1077 would make it so that in the state of California taxes and fees would not be calculated until incentives, such as federal income tax credits and state purchase rebates, have reduced the cost of EV. The sales tax that would be exempted would save would be EV buys around $875. The goal of the Bill is to make EVs more cost competitive with conventionally powered vehicles.
The cost of EVs in today’s market is certainly an issue that plagues would be buyers — however lowering the cost is not going to quells all consumer fears and immediately boost sales. The issue of range anxiety for EV drivers given the lack of public charging stations is an issue. As is the fact that gasoline and diesel powered vehicles are continuing to become more and more fuel efficient.
The future of alternative fuel vehicles is still uncertain. EV companies are shutting their doors while the hybrid vehicle market is seeing great gains. In any event, Bills put forth by statesmen like Assemblyman Muratsuchi are encouraging and hopefully we will see similar Bills in other states soon.
Andrew Meggison was born in the state of Maine and educated in Massachusetts. Andrew earned a Bachelor’s Degree in Government and International Relations from Clark University and a Master’s Degree in Political Science from Northeastern University. Being an Eagle Scout, Andrew has a passion for all things environmental. In his free time Andrew enjoys writing, exploring the great outdoors, a good film, and a creative cocktail. You can follow Andrew on Twitter @AndrewMeggison