
Image From ..KCbizjournal.com
It's no surprise that elected officials from Seattle to Savannah are all looking for new revenue sources to bolster slumping local economies (with a few exceptions like the oil-rich Dakotas)... And, they should do that to serve their constituents.
But in Kansas, Representative Tom Sloan, (45th district representing West Lawrence and Douglas County) proposed something he probably wishes he hadn't. (A message was left on his phone, but he hasn't called back.)
Sloan proposed a bill that would impose a new fee on the power used by all-electric and electric/hybrid vehicles when they charge up their cars, whether that's at their own home or a public charging station.
Sloan told an AP reporter that Kansas should consider imposing such a fee before electric cars become a regular feature on the state's highways. (He must know something we don't!) GM reported that, to date, a grand total of 24 Chevrolet Volts have been bought and are registered by the state's Dept. of Motor Vehicles.
"Whether it's 24 Volt owners in Kansas or 24,000, shoud they be paying to use the roads on which they drive?" Sloan asked.
For the record, no other states tax the electricity EVs use. Washington considered imposing a $100 annual tax and thankfully the legislature recognized that they've flogged the citizens enough already.
Needless to say, the folks at GM's Fairfax Assembly plant are a bit miffed. GM has been producing cars there since 1945 and in 2010 it produced 320,000 vehicles. It's the Kansas City metro area's largest employer with more than 3,900 workers. GM paid $470 million in wages and benefits last year along with state and local payroll taxes of $14.8 million.
Additionally, last year another $20 million was invested at the Fairfax Assembly plant to add future technologies and improvements to the Buick LaCrosse including eAssist, a light electrification technology that will boost highway fuel economy by 25 percent over the current model.
GM spokesman Lindsey Douglas says creating the tax that Sloan proposes could discourage EV car sales and help kill the industry in its infancy. It's premature and sends the wrong signal to consumers about whether they should consider EVs or hybrids.
"If we're not being shown that there's backing behind us by the state legislatures, why would we want to continue supporting this technology and pushing it forward if what we're being told is: 'We're going to tax this to its death before it ever gets a chance to survive.'?"
Consumers need affordable vehicle options. We need incentives, not disincentives to grow the economy. Rep. Sloan, maybe you should ask for a mulligan on that one.