Our Take: Another Twist on Alternative Fuels: The State’s Higher Cost of VLTs Covers Trolling Gas Sales | Opinion
Remember the Arizona alt fiasco at the turn of the century? A slight miscalculation allowed a program that was supposed to subsidize the purchase of low-emission vehicles for $ 10 million turned into a state error of $ 200 million.
Good news for the more than 22,000 buyers of such vehicles, bad news for the rest of the state’s taxpayers.
The good news for these particular buyers continues, assuming some are still on the road. They will continue to pay 1% of the vehicle’s value to register it with the state each year. But those who wait until Jan. 1, 2022 will have to pay a vehicle registration fee which, within a year, will equal the regular vehicle registration fee of $ 2.80 per $ 100 of valuation assessed. .
Hybrid vehicles are not covered by the state’s alternative fuel registration grants.
The higher TLV on low-emission vehicles is a major unintended consequence of the greening of the country’s roads. Arizona is not alone. Other states are also recognizing the loss of gasoline tax revenue as internal combustion engines lay down around the world.
As elsewhere, gasoline taxes in Arizona are a major source of revenue for road repairs and improvements.
Going green can do people good, but it comes with costs that are not always anticipated.
What if, for example, everyone had an electric car, requiring more power from the power plant? Electricity production also generates a fairly high carbon footprint. The manufacture of batteries too. Then there’s the unpleasant fact that mining lithium for batteries generates a lot more carbon than will be saved by the batteries themselves.
The economics of switching energy sources are still very much linked to taxpayer subsidies. The Biden âBuild Betterâ Bill, for example, offers up to $ 12,500 in credit toward the purchase of an electric car made in the United States with unionized workers. Many political boxes are checked. Taxpayers receive the tab.
There’s a lot to like about some new EVs from a performance standpoint.
There is also, however, a proven story suggesting that those who deliver a sales pitch rarely explain the whole truth. Not fully understanding the benefits and costs is a recipe for unforeseen expenses down the road.
– Today’s News-Herald