Until now we have been led to believe that buying electric vehicles (EVs) was all advantages, both for us and for the environment, but in Maine they do not have that perception, and in this state, they plan to impose an annual fee for all drivers of electric vehicles. $250 that you will have to pay every year as a consequence of the drop in gas tax revenues. That’s how the world works, you buy a vehicle to save on diesel and reduce emissions into the atmosphere and then comes the LD622 Bill putting all your savings at risk.
Even this measure is not definitive, everything points to it being approved soon, making Maine one of the states with a specific tax for EV users.
This comes at a rather specific moment when thousands of residents are preparing their summer vacations, right where it hurts. We’ll tell you everything concerning this tax and why Maine has decided to implement it.
Tax on electric cars?
Maine, like in almost all states, finances the maintenance of its roads with what it collects from gas taxes. But, of course, the increase of EVs in recent years has made that tax barely have funds to finance anything, and in 2021 there were already 1.2 million electric vehicles that did not pay the gas tax because, as you know, these vehicles do not consume fuel, so the gap that was being generated in revenue from this tax was quite evident.
To fill this void, they are proposing to add a fixed annual fee of $250 to all electric cars, and, in the context we have explained to you, the argument is simple: if they use the same roads, they also have to pay to use them even if they don’t refuel with gas.
Maine joins the rest of the states
Until now, Maine was one of the 11 states that did not impose extra taxes on EV drivers. But, if this proposal gets approved, it will completely change the discourse that until recently encouraged switching to electric mobility to promote the transition towards a cleaner state.
What does the approval of LD622 Bill imply?
If the LD622 bill is approved, it is clear that the wallets of all users will be affected, they will have to pay $250 annually when renewing their registration (and without counting other types of sales and registration taxes that are already done).
Does this change anything?
Yes, of course, $250 are $250. Several experts also point out that this fee could stop many users who were finally considering moving to electric vehicles, especially in rural areas where fuel savings seemed to be one of the biggest incentives…
In addition, this measure comes just before summer when many families plan to finally take their long-awaited vacation trip, and most usually make the trip by car. The timing, of course, could not be worse.
A step back against climate change?
Many environmentalists have taken this measure as a direct blow to the energy transition, since Maine, for example, has a fairly ambitious plan for energy transition and had long promoted measures and incentives to promote the use of EVs. Is this a stick in their own wheel?
Who should really pay for the roads?
There is also debate on the substance of the matter: does it make sense for an electric car to pay the same as a gasoline one? Many believe it does not. They argue that EVs pollute less, wear out the roads less, and therefore, the fixed fee is unfair and disproportionate.
Is a $250 fee (being the highest of all states) necessary to guarantee the sustainability of the roads? It seems clear that, this summer, in Maine, driving an EV will be more expensive, more controversial, and much less green than we all thought.