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Virginia - EV Highway Tax $109 per year for Tesla Model S

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Xenoilphobe

Well-Known Member
Jan 2, 2014
5,155
5,185
DC Swamp
Va. Code §§ 46.2-770, § 46.2-771, and § 46.2-772

The purpose of the highway use fee is to ensure a more fair contribution to the Commonwealth Transportation Fund from fuel-efficient and electric vehicles using highways in the Commonwealth. The Commonwealth Transportation Fund is funded, in part, by motor fuels taxes. The highway use fee is effective July 1, 2020 and will be updated on a yearly basis.

"Fuel-efficient vehicles" are defined as vehicles that have a combined fuel economy of 25 miles per gallon (MPG) or greater, while, "electric motor vehicles" are defined to mean vehicles that use electricity as the only source of motive power.

In addition to a vehicle's combined MPG rating, two other factors are considered when calculating highway use fees: (1) the fuels tax rate at the time the vehicle is registered, and (2) the average number of miles traveled by a passenger vehicle in Virginia.

Electric vehicles are required to pay a fixed highway use fee, which is currently $109.00, to reflect the amount in fuels taxes electric vehicles will not pay during a single year due to not purchasing motor fuel.

The highway use fee for fuel-efficient vehicles, or vehicles manufactured in a year in which the average combined MPG rating for all of the vehicles produced in that year is 25 MPG or greater, is calculated to reflect the difference between the amount of fuels tax that the vehicle pays in a single year, based on its combined fuel efficiency, and the fuels tax paid by a vehicle with a combined fuel efficiency of 23.7 MPG.

DMV uses the combined fuel rating as provided by the manufacturer to determine if a vehicle is subject to the highway use fee. If the combined fuel rating is not available for a vehicle, DMV uses the estimated average fuel economy as determined by the U.S. Environmental Protection Agency (EPA) for all cars of the same model year and all trucks of the same model year with a gross weight between 6,000 and 10,000 pounds.

The following vehicles are exempt from the highway use fee:

  • Vehicles with a combined miles per gallon rating less than 25 MPG;
  • Autocycles;
  • Motorcycles;
  • Mopeds;
  • A vehicle with a gross weight greater than 10,000 pounds;
  • A vehicle that is owned by a governmental entity;
  • A vehicle registered under the International Registration Plan (IRP).
Partial refunds do not include all fees paid at the time of registration. Fees not refunded are the Highway Use Fees, one-time plate reservation fees, Virginia Road Tax for heavy trucks, and any late fees.
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Reactions: RudeDude
How come your “highway use fee” is so high?
Looks like this will be OBE in July. This approach seems more “fair” as long as it applies to all vehicles regardless of propulsion source. The info is already available as the mileage is currently captured during the annual safety inspection. See following article for info on July 2022 program start date: Virginia hits gas pedal on plans to fund infrastructure with mileage-based fees
 
How come your “highway use fee” is so high?
Looks like this will be OBE in July. This approach seems more “fair” as long as it applies to all vehicles regardless of propulsion source. The info is already available as the mileage is currently captured during the annual safety inspection. See following article for info on July 2022 program start date: Virginia hits gas pedal on plans to fund infrastructure with mileage-based fees
its for 3 years...(front loaded)
 
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Reactions: Leeclanual
The mileage plan is crazy... I drive from my home in NOVA to our beach house a lot, only 40 of those miles are on Virginia highways, the rest is in other states, but they want to tax me for my mileage in other states. that is fing crazy! and charge me tolls and HOT lane fees, and sales tax and property tax and gas tax?

It's like the Afghan police road blocks we used to run into, why are you stopping us?
We tax for this road.
How much is it?
How much do you have?

Tax the vehicles that do the most damage to the roads, if your vehicle weights 80,000 lbs... and you drive 1M miles per year... how much do they pay?

If they pull this mileage deal, I will register them all out of state.
 
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Reactions: DC_Wheels52
According to the legislation, the plan is opt-in (voluntary for now). I find it fairer than a flat rate but do understand your concern about out of state use. I would hope they would eventually apply it to ALL vehicles including ice and maybe repeal the state gas tax. But then, I am also hoping for shorter lead times on the Plaid model X🥸!
 
VAs gas tax is currently 26.2 cents per gallon (not including the federal gas tax of 18 cents), and will continue to be adjusted annually based on inflation.

With the EV surcharge of $109/yr, that's 416 gallons of fuel (246 gallons if you account for the fed tax you're not paying). If you had an equivalent ICE vehicle that averages 25mpg, the break even point is 10,400 miles (6,150 miles when including the fed tax) - so all in all, you're still coming out ahead with the EV.

The state of the roads in VA is self inflicted. With the exception of Northern VA, the state doesn't really see much snow, and when we do, the plows tear up the roads because they don't have the correct equipment in most areas. Secondly, registration for heavy commercial vehicles is laughably low.

It would be nice if the mileage plan was required for commercial vehicles but solely opt-in for passenger vehicles - but I still see issues with it. As mentioned above - people do drive out of state.
 
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Reactions: Don.Church
The fee has been $64 per annum the past several years. They’ve never gone into that much detail before on the calculation of the fee, but I’ve never really looked for an explanation before. I’m not sure what everyone is referring to with “mileage plan”, although I’m generally in favor of a mileage based usage fee for all cars. My interpretation of annual mileage in the explanation of the user fee is an average of all passenger cars in Virginia so as to come up with a fair average fee. I don’t get the anger over the mileage. When you drive out of state roads and not buying gas there, you’re essentially getting to use the roads for free, just like all those EV people in Maryland and NC drive for free on our roads. Only way to sort that out would be to allow the Commonwealth to track your car to get an accurate tally.