Skip to main content

Could a pending measure in North Carolina signal the ill-fated future of EVs in the US?

Could a movement in North Carolina signal the future ill fate of EVs in US?  A new measure being considered in North Carolina suggests that electric vehicles might not have much as much appeal in some states as some had hoped.

North Carolina is considering joining a number of other states in the US that charge EV and hybrid drivers fees to help pay for the cost to build and maintain roads much like the owners of gasoline cars do when they pay gas taxes.

According to an ABC News report, state lawmakers are proposing that owners of EVs pay $100 a year and the hybrid car drivers pay $50 a year. The measure, which has already been passed by North Carolina’s Senate, is set to be considered by members of the state’s House.

ABC news reports that Virginia Gov. Bob McDonnell recently signed a similar measure into law in April that requires all alternative vehicle owners to pay a $64 fee to support the state’s transportation network.  Washington state taxes EV drivers $100 a year, according to ABC News.

North Carolina State Senator Bill Rabon (R-Brunswick), indicated that charging the state’s alternative vehicles owners a fee is important to maintaining North Carolina’s road infrastructure.   

“We earn our revenue (for state) transportation from three sources: fees; highway use tax, or the 3 percent tax on automobile purchases; and the motor fuels tax, also known as the gas tax,” Rabon told the Wilmington’s StarNews, as reported by ABC. “[The gas tax] is about 55 percent of our revenue.”

Toyota Vehicles
Image used with permission by copyright holder

The general premise of the new North Carolina fee, among supporters of the measure, is that whether you own an old pick-up or a new hybrid, everyone who owns a vehicle in the state should be equally responsible for supporting the road infrastructure.  

News of the plan to charge EV and hybrid owners the fee comes less than a month after North Carolina lawmakers proposed to make it illegal for Tesla to use its direct-sales method to sell its electric cars in the state, as reported by ABC News.  

Jay Friedland, legislative director of the green car advocacy group, Plug In America, told ABC that while he agrees EV owners should share in the costs, the North Carolina measure is counterproductive.

Instead, Friedland proposes charging all state residents a fee based on miles traveled and the weight of a vehicle.  He said taxing green car owners at this point before there are more of them on the road diminishes the benefits of the vehicles such as cleaner air.

Even more, measures like the one being considered in North Carolina makes you wonder if some of those nice cash incentives touted by carmakers to entice you to buy an electric vehicle might be in jeopardy as well.  

And if so, will people still be drawn to the  alternative vehicles, which have already been struggling to meet sales expectations? And looking to the future, if EVs gain in popularity  and continually increase as a percentage of vehicles being driven – driving down gas tax revenues – will the fees increase?

Are electric vehicles the future, no matter what kind of fees are levied on them, since you don’t have to buy gas? Tell us your thoughts in comments.

 Photo Credit (Dealership): Christian Science Monitor 

Editors' Recommendations

Topics
Marcus Amick
Former Digital Trends Contributor
Marcus Amick has been writing about the world of cars for more than ten years and has covered everything from new automobiles…
Tesla’s fix for faulty Cybertruck pedal is simpler than you might think
Tesla Cybertruck

Less than five months after handing over the first Cybertrucks to customers, Tesla has had to recall the electric pickup to fix an issue with the accelerator.

In a notice issued on Friday, the National Highway Traffic Safety Administration (NHTSA) said that the recall impacts Cybertruck vehicles manufactured from November 13, 2023, to April 4, 2024. This suggests that all -- or almost all -- of the 3,878 Cybertrucks being recalled are those that have been manufactured to date.

Read more
Ford Mustang Mach-E 2024 vs. Mach-E 2023: What’s new in Ford’s electric Mustang?
Blue Ford Mustang Mach-E on a rooftop

The Ford Mustang Mach-E is easily one of the best EVs for the price, offering a solid range, sleek design, and pretty good tech on the inside. In recent years, it has gotten even cheaper -- thanks in large part to a price war between it and the Tesla Model 3. And, the company just took the wraps off of the latest and greatest version of the Mach-E, labeled as the 2024 model.

The 2024 Mustang Mach-E is notably different from the 2023 iteration in some meaningful ways. So much so that we decided to take a look at the two head-to-head -- to see if it was better to pay for the 2024 model or save some cash on any remaining 2023 stock.
Design
The Mustang Mach-E looks relatively unique -- in a good way. And thankfully, Ford has largely kept the overall design the same for the 2024 model, at least when it comes to the more consumer-focused models. The car retains the slatted taillights and crossover size. It also offers a large selection of colors, including the very blue Grabber Blue Metallic, as well as Rapid Red Metallic. It's a good selection of colors, and there should be an option for most buyers.

Read more
Tesla to begin production on new, more affordable models
Tesla Model 3

With competition increasing from Chinese and other automakers, Tesla boss Elon Musk revealed on Tuesday that his company is planning to begin production of new, more affordable models in “early 2025, if not late this year.” Notably, that's earlier than the previously stated date of late 2025, though whether Musk actually succeeds in meeting the earlier production time frame is another question entirely.

The news came as Tesla released its latest quarterly figures. Revenue for the electric vehicle maker came in at $21.3 billion, down from the $23.3 billion it reported for the same three-month period a year earlier and also down from the $25.2 billion reported in the previous quarter. Profit reached $1.1 billion, marking a 55% fall compared to the same period a year ago.

Read more