Many of us would love to own a shiny new car, especially if that vehicle were at the forefront of cutting-edge technology. Electric vehicles seem like an enlightened way to get around without having to resort to a gas-guzzling jalopy or sacrifice personal freedom. Unfortunately, if you are considering buying an EV, you will almost certainly come away from the dealership with a much lighter pocketbook. In an effort to lessen the sting of going green, California Assemblyman Al Muratsuchi has proposed a bill that would use the post-purchase value of the car to reduce taxes and fees for plug-ins.
The Assemblyman announced Bill AB-1077 in Hermosa Beach, appropriately in front of City Hall’s EV charging stations. If passed, the legislation would knock off anywhere between $500 to $1,000 from the sticker price. In the state, car buyers pay 8 percent of the sticker price, regardless of what they purchase. Muratsuchi noted that those who wanted to take home an alternative fuel vehicle were left at a disadvantage as they consistently cost more than gas-powered autos. He gave examples of several models, such as the Ford Focus EV, valued at $13,000 above its fossil-fuel burning counterpart, and a Toyota Rav4 EV, which costs a full $20,000 more.
AB-1077 could reduce the overall burden to the customer by $10,000 when combined with the federal tax credit of $7,500 and the California clean vehicle rebate that returns $2,500. With a little extra cash at hand, hopefully the EV market can see a jolt in sales and gain some critical mass to bring the overall unit price down. Now, it is up to the state to get rolling on giving consumers just one more reason to drive an EV. The bill needs to pass through both houses, and is scheduled to be heard on May 5 by the Californian Assembly’s Revenue and Tax Committee.
Via Clean Technica
Images via Wikicommons user Mariordo.