Toyota Prius

Virginia repeals the Prius tax

Under new democratic governor, and former electric vehicle company founder, the Virginia tax on hybrids is now history.

Last year Virginia did something interesting. Instead of taxing its gasoline at the pump in the manner most are familiar with, it instead decided to tax gasoline at the wholesale level. Yeah!, We don’t have to pay the gas tax! Not quite. The 17.5 cent per gallon tax was replaced with a 3.5% wholesale gas tax which is then passed onto consumers by station owners. There were a lot of other changes too, one of which was a new tax on the registration of any hybrid, electric, or alternative fuel vehicle. It started out at $100, but before implementation, political compromises reduced that to $64.

The idea of taxes of this type that hit just green vehicles is that since the new greener cars use less fuel, they should pay more taxes to offset the reduction in gasoline tax they pay. Usually the gas taxes are called by politicians “road and bridge repair taxes.”


Share on Facebook submit to reddit Share on Google+
Sign-up to our email newsletter for daily perspectives on car design, trends, events and news, not found elsewhere.


North Carolina has a new EV Tax for 2014 which should be repealed for these reasons: 1. My family already paid $540 extra in North Carolina "Highway Use Tax" (3%) on the additional $18k I spent for a Nissan Leaf, beyond the cost of a comparable car such as a Nissan Versa ($35,020 vs. $16,890 for SL model). 2. My family only drives the Nissan Leaf around town as it has limited range. The local roads are paid mostly with local taxes, not state gas taxes. When we go on longer trips on state highways, we take the gas car and pay state gas taxes. 3. My family has to overpay for property taxes on the Nissan Leaf because the tax value assessed does not reflect the actual market value, which is $7,500 lower than the purchase price due to the federal tax credit. 4. My family pays state tax on the electricity used to power the Nissan Leaf. 5. The state of North Carolina has a projected $60-billion transportation budget shortfall over the next 30 years, while the EV "fee" (a tax) this year is projected to bring in only $160k this year. (source: Raleigh News and Observer, 1-11-2014) 6. Other neighboring states such as Georgia provide a $5,000 credit, not a tax. 7. Gas cars aren't paying for the massive military costs incurred to protect oil supplies. Same for cost of health and environmental impact.