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McDonnell justifies the $100 annual tax on alternative fuel vehicles in spite of the elimination of the state gas tax because "the federal gas tax of 18.4 cents will remain and with more alternative fuel vehicles on the road, the less of a share Virginia will get of those federal gas tax revenues." So the tax can be seen as an attempt to have those drivers pay approximately as much as drivers of gas-powered vehicles pay in federal gas tax ($100 = tax paid in a year if filling up a normal-sized tank about once every week and a half).

The problem is that it assumes that these drivers are paying for roads "which they use every day" (language from Gov's website). If you do not drive your car every day, the tax is a disincentive to buying an alternative fuel vehicle since you'll be paying far more than other drivers relative to your road usage.

by RTA on Jan 9, 2013 12:06 pm • linkreport

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