Jan 22, 2023
Study: Electric Vehicles Could Cost Michigan $95 Million Annually in Lost Tax Revenues
This news has been received from: tennesseestar.com
All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.
by Scott McClallen
As the number of electric vehicles grows in Michigan, so does the revenue hole from missing gas taxes that fix the damn roads.
An Anderson Economic Group study estimates that from 2019-2021, Michigan roads lost out on $50 million in state gas tax because EVs charge instead of filling up at the pump. With EVs representing between 15% to 25% of new vehicle sales statewide by 2030, EVs could cost the state $95 million a year by 2030, with a total deficit of up to $470 million.
Principal and CEO of Anderson Economic Group Patrick Anderson said that EV drivers don’t pay state or federal gas taxes, so they pay 70%-80% of what typical drivers pay.
There are 25,181 EVs registered statewide compared to 6.5 million vehicles with internal combustion engines. The state is spending $110 million to build charging infrastructure to prepare for 2 million EVs on the road by 2030.
Moreover, EVs often weigh a thousand pounds more than traditional vehicles because of battery weight, meaning they tear up roads more but pay less for their repair. Michigan has more than 120,000 miles of roads.
“Michigan put the world on wheels, and 100 years later we continue to lead the world into a new and exciting future for mobility. But we need to act now to ensure we have the road funding needed to drive that future,” County Roads Association of Michigan CEO Denise Donahue said in a statement. “That’s why we are calling on lawmakers and the Governor to launch a pilot project that gives us the answers we need about a future-forward road funding model for EVs.”
The CRAM estimates with that loss in funding, county road agencies wouldn’t be able to resurface 840 miles of local and primary roads annually.
The report offers five solutions:
- An annual flat registration fee to counter lost revenue.
- Mileage-based user fees.
- Per kilowatt-hour fees.
- Miles at registration fees.
The report found that drivers of vehicles with internal combustion engines pay on average $402 a year in fuel taxes and registration fees. Meanwhile, the owners of fully electric vehicles, plug-in hybrids, and hybrids pay $298, $262, and $269, respectively.
– – –
Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
Photo “Woman Charging Electric Vehicle” by Oregon Department of Transportation. CC BY 2.0.
News Source: tennesseestar.com
Sunnyvale School District has 3 Distinguished Schools
Three of the eight elementary schools in the Sunnyvale School District were selected for the state’s 2023 Distinguished Schools Program.
The California Department of Education bestowed the distinction on Cherry Chase, Cumberland and Fairwood elementary schools. The Sunnyvale campuses were among 356 in the state to be named Distinguished Schools this year.
Established in 1985, the California Distinguished Schools program recognizes schools for their work in one of two categories: closing the achievement gap and achieving exceptional student performance.
“We are excited that the state of California has recognized the dedication of our staff, students, families and district,” Superintendent Michael Gallagher said in a statement. “All of our stakeholders are working together to build school communities that focus on the academic, social-emotional and behavioral growth of our students, and that is clearly contributing to the success of our students.”
The Department of Education selected schools for the distinction by analyzing data reported through the 2022 California School Dashboard, including assessment results, chronic absenteeism, suspension rates and socioeconomic data, according to the Department of Education.
“California Distinguished Schools represent examples of not just excellent teaching, learning and collaboration but also highly successful, data-driven school efforts ranging from professional development for educators to mental health and social-emotional wellness strategies to address the needs of students and families,” state Superintendent of Public Instruction Tony Thurmond said in a statement.
Elementary schools and middle and high schools receive the award in alternating years, meaning schools hold the title for two years.
For more information, visit cde.ca.gov/ta/ac/cm/index.asp.