Add Louisiana to the list of more than 30 states that have passed electric vehicle charges.
Governor John Bel Edwards signed into law a bill in June setting road user fees of $110 per year for electric vehicles and $60 per year for hybrid vehicles. Hybrid or all-electric school buses are exempt.
The fees come into effect on January 1, 2023. Owners of electric and hybrid vehicles will have to pay when they file their tax returns. Revenues are to be split 70-30 between the state fund that pays for road and bridge repair projects and local government transportation budgets.
Proponents of the bill said it was a matter of fairness: Drivers of carbon vehicles in Louisiana pay an average of $148 a year in state gasoline taxes. Meanwhile, the state has $14.8 billion in deferred transportation maintenance projects and 13 bridges have been closed this year because they are deemed unsafe, disrupting commuters and businesses.
Louisiana has fewer than 2,000 all-electric vehicles on the road, according to a recent report that looked at federal data.
A majority of states now have fees for electric vehicles
The move is not surprising. We predicted states would take these kinds of actions as more hybrid and all-electric vehicles hit our roads, each reducing the amount of gas tax collected by federal, state and local governments, and by special purpose districts.
Gas tax revenues are falling, but electric vehicles continue to wear down the roads, so states need money to maintain them. For this reason, it is only a matter of time until some sort of electric vehicle tax or fee is enacted nationwide.
A study conducted for the Montana Legislature in the fall of 2021 found that 30 states, at the time, had established some sort of fee. Costs range from $50 in South Dakota to $235 in Michigan for electric vehicles over 8,000 pounds. (Michigan increases its electric vehicle fee when gasoline taxes increase, so this rate is subject to annual recalculation.)
The study found that some states, like Louisiana, charge lower fees for hybrids. Others, like Minnesota, specifically exclude hybrids from the electric vehicle levy. The majority of states assess the fee as part of the annual vehicle registration process. All states, so far, split revenue from fees between state highway budgets and funds that support county and city highway projects.
Montana does not yet have an electric vehicle levy, but a legislative committee is considering two separate proposals, one for an electric vehicle levy and the other for a tax on electricity used to charge cars in public charging stations.
Norway could be a model for the future of gas stations
What does all this mean for service station operators?
In the short term, it will be like before. According to a 2021 report, gasoline powered about 90% of light transport vehicles on the road. Historically, about 3% of American light-duty vehicles were diesel-powered, although this percentage may have increased in recent years.
And a US government report estimates that by 2040, 78% of cars and light trucks will still be gasoline-powered.
But that is starting to change. Industry sources indicate that 12.6% of all vehicles sold in the United States in the last quarter were “electrified”, meaning fully electric, hybrid or plug-in hybrid. Tesla is still the uncontrollable market leader, with a 66% market share. However, Ford has doubled its electric vehicle sales over the past year, while Hyundai has quadrupled them.
High gas prices will only spark new interest in electric and hybrid vehicles. Detroit is responding with a new line of electric vehicles inspired by familiar sedans and family SUVs that promise 300 miles of range per charge and similar performance to their carbon counterparts.
Carbon fuel retailers will have to start planning for the not-too-distant future, perhaps a future where gasoline and high-speed electric vehicle charging are just some of the many services they offer. Some are turning to Norway where electric vehicles account for nearly 20% of cars on the road in some regions.
Again, in North Carolina, a bill aims to help gas stations be competitive by eliminating public charging of electric vehicles unless the public agency operating the charging station also provides gasoline. free on the same site.
As the industry pivots, sales of non-gasoline items will become more important to convenience store operators. Convenience stores already face some of the most complex tax challenges of any retailer, which we covered in a blog post earlier this year.
Avalara Inc. published this content on July 29, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on July 29, 2022 12:07:06 UTC.
Public now 2022
Trends Technical Analysis AVALARA, INC.
|Short term||Middle term||Long term|
Evolution of the income statement
|Medium consensus||TO BUY|
|Number of analysts||14|
|Last closing price||$87.27|
|Average target price||$115.08|
|Average Spread / Target||31.9%|
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