Tag: Taxes

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Carmathema

a·nath·e·ma /əˈnaTHəmə/ noun Something or someone that one vehemently dislikes.

car·math·e·ma /car MATH amuh/ noun The reluctance of people to do basic math regarding EV ownership (which is anathema to me).

Kentucky now has an EV tax in place supposedly to offset waning revenue from the 26 cent per gallon gasoline tax.  A spokesman for EvolveKY, an EV advocacy group headquartered in Louisville, said that he was not surprised and that “it needed to come. We need to pay our fair share.”  The fee is $120 and will be paid when the car is registered every year (another tax).  There is also a 3 cent per kWh tax on public charging to be collected by the station owner and paid to the state monthly.

Make no mistake, any EV owner in Kentucky knew this was an eventuality, but this prompted me to question what exactly is a “fair share”?  Turns out that if you do a little math, a flat tax on an EV is comparing apples to oranges with regards to the traditional  “use more, pay more” model of the standard gas tax.  

A fundamental difference is that the gas tax is “hidden” in the price of a gallon of gasoline.  The EV tax smacks you in the face when you renew your tags.  

Would traditional drivers change their driving habits if they had to pay their taxes in one lump sum  the way EV drivers are now being  asked  required to?

After examination, I think the way we assess these taxes is inherently flawed, but in reality it all comes down to choice.  A Suburban driver is taxed more than a Subaru driver based on fuel efficiency alone, but what you drive is a choice.  Toyota Tundra owners know driving a truck is more expensive than driving a Camry. It’s a choice they make based on what they value. I believe it’s worth $120 a year to drive an EV, but that’s my choice.  

In my opinion, there is room for improvement for the entire system, but try to find a lawmaker that wants to do the math. The bottom line is that taxes are inevitable, but calling it “fair” is a bit of a stretch.  

Let us know what you think?

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Those Taxing Questions That Keep Us Up at Night

At 9:30 AM, the meeting started. Brent was attending in person and I remotely from my kitchen. Unbeknownst to me, Brent was supposed to be in the first half and I was supposed to be in the second half of the day long informational session.

These things are typically conducted in a less than artful or entertaining way. After I realized the first half didn’t pertain to me, I excused myself and rejoined after the lunch break. Brent ducked out of the second session where the basis of this episode originated.

I found out a new $ .03 per kWh tax on public charging is coming to Kentucky and wondered what that really means for EV drivers in the state. At first glance, it is designed to offset revenue generated by the $ .28.7 per gallon fuel tax, but does it really?

Unfortunately, my first question (one that any American citizen should be asking on any governmental decision) was what partisan political angle may be hidden in the new law. For the sake of this discussion, let’s assume it is born of pure motives. I think it’s a shame that we have to look at everything through this lens, but healthy skepticism toward all sides of the political spectrum and the media at large has been shown necessary. It’s a fact of human nature that people, most often, will find ways to benefit themselves and what they hold sacred, especially those in power.

Setting that aside, my more practical questions are “does this make sense and how will it impact EV adoption?” In reality, I don’t think this will be the big economic windfall law makers are expecting. They really don’t understand the nature of EV ownership and are approaching this with “gas-pump mentality.” Mathematically the logic is sound but in practicality is flawed.

Another piece of information that came out of this meeting was about the recently proposed EPA rules. The EPA is now tasked with sorting through the millions of comments received during the feedback portion of their proposal and must return with a “modified ruling” that then will become law. The rules, regardless, will impact the reliability, safety, and affordability of electricity in America.

How will this impact EV adoption? Only time will tell, but with all legislation by agency, it’s subject to change with each election cycle.

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TESCO Shrugged Part 1

A grocery chain in the United Kingdom, Tesco, is pulling thousands of FREE public chargers from several of its locations because of the rising cost of energy. The plan is to eliminate 2,147 FREE ports which is a 38% reduction of the FREE charging available at 600 locations in the UK. That is a 5% drop in the OVERALL public infrastructure in Great Britain.

It sounds to us like Tesco is WalMart with a British accent and we know WalMart hosts several ElectrifyAmerica locations… but they are by no means FREE. Should they be?

Seriously, if WalMart is dedicated to the environment, should we expect free charging? Subsidized charging? How about Volkswagen? IKEA, North America? The US Government?

In America, we have a 1 TRILLION dollar infrastructure spending bill in place with $7.5 BILLION set for public charging. The question is, who is paying for this and who SHOULD be paying for this?

You know we are just guys talking, but let us set aside the mandates and the climate for a moment and discuss the role corporate America should play, the government should play , and each of us will play as EV adoption increases. Enjoy part one of our discussion.

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