Kentucky electric cars now pay two taxes where gas cars only pay one

Published

5 months ago

January 1, 2024

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Kentucky State Capitol. Photo by Mobilus in Mobili on Flickr

As of January 1st, Kentucky has implemented not one but two new taxes on electric vehicles, both of which are individually higher than what gas vehicles pay on similar units of energy.

Kentucky has joined the trend of overtaxing EVs and letting gas cars get off without paying their fair share for the damage they cause to roads and your lungs, but it has gone beyond most other states and is now implementing two new taxes on EVs at the same time, while keeping gas taxes artificially low compared to the damage gasoline causes.

First, EVs will have to pay an additional $120 registration fee every year, over and above the normal registration fees for all vehicles. Kentucky isn’t the first state to implement such a dumb fee, with similar punitive taxes existing in a majority of US states at this point.

We’ve covered many times before how misguided these taxes are, not least of which because they are a cynical lobbying ploy by the oil industry to disadvantage an objectively better transportation option. Kentucky’s fee is lower than that of many other states, but it still taxes EVs at a much higher rate than a similarly-efficient gas vehicle (a ~140mpg gas car, if it existed, would pay ~$30 in gas taxes in a year if driven 15k miles, but a 140mpge EV, which there are multiple of, pays $120 no matter the mileage).

But on top of this, public EV charging stations in Kentucky now have to pay an additional 3 cents per kilowatt hour of electricity distributed, and an additional 3 cents for those chargers that are on state property. This is similar to (but larger than) Iowa’s dumb EV charging tax, with both taxes applying to public charging and not home charging.

When compared to Kentucky’s average electricity rates of 13 cents per kilowatt-hour, this would represent a 23% or 46% tax on electricity – although, usually public charging is more expensive than that. At the Kentucky Public Service Commission’s approved rate of 25c/kWh, this represents a 12% or 24% tax.

These rates on public charging are notably higher than the roughly 11% tax that Kentucky collects on gasoline (28.7 cents, compared to a current average gas price of $2.78 per gallon in the state). If that tax were calculated on a per-kWh basis, it would be about 0.85 cents per kWh, meaning electricity is taxed at ~3.5x the rate of gas (or 7x on state property). And gas vehicles do not have to pay an additional registration fee due to their powertrain, despite the damage that it does to every Kentuckian.

Despite only applying to public charging, this new tax will affect commuters and apartment dwellers disproportionately. Apartment dwellers are more likely to charge on public charging, which means that these charging sessions will be taxed while homeowners’ charging sessions won’t, meaning a larger tax on renters than homeowners. It also means that places of business that previously incentivized workers or customers with free charging may no longer be able to offer these free charging services as a result of the tax.

But that’s not all! Kentucky also has a 6% tax on utility services across the state – though a person’s primary “place of domicile” is exempt from this tax. So it’s possible that an EV driver may need to pay three taxes depending on where the electricity is coming from.

The rationale for Kentucky’s new tax is similar to those in other states – Kentucky is laboring under the misguided notion, propagated by Koch/fossil fuel industry propaganda, that electric vehicles don’t pay for roads. This rationale can be seen in the way the legislation is crafted – the charging tax is automatically indexed to the price of road repairs, which is notably not true of the gas tax in the state of Kentucky (that is instead indexed to the price of gasoline, not to road repairs). Kentucky even calls the new annual tax a “road usage fee” in the legislation, even though it does not levy a similar fee on gas vehicles.

The fact is, the vehicles that are doing damage to roads also don’t pay for roads – gas taxes only cover less than a third of Kentucky’s road costs, which means that gas vehicles are freeloading on at least two thirds of the road budget for the state.

In actuality, virtually all road damage is done by diesel semi trucks anyway, not gas or electric cars, so road damage has little to do with passenger vehicles. An average EV does tens of thousands of times less damage to roads than a semi truck over the course of the year, so if a $120 fee is considered fair for an EV, then semi trucks should be paying registration fees in the millions of dollars – and if the latter sounds too high, then you must also acknowledge that the former is too high, if road damage is your main concern.

On top of this, gas taxes certainly don’t pay for the immense damage that burning gasoline causes, which cost society about $4 per gallon burned. The total cost of subsidies to dirty energy in America, a large portion of which goes to gasoline for motor vehicle use, was $760 billion in 2022. Few states even attempt to correct for this subsidy, with only a few having any sort of pollution pricing scheme.

Regardless of this free ride that fossil-powered vehicles are getting, in every state, on both our roads and our lungs, it didn’t stop Kentucky Governor Andy Beshear from trying to stop a pittance of a 2 cent gas tax rise, claiming that he wanted to save Kentuckians money. The same rationale has not been applied to stop these abusive EV taxes, despite that 3c/kWh + $120/year is a much bigger increase than 2c/gallon (one gallon of gas has 33.7 kWh of energy in it). And as covered above, that bigger increase will disproportionately hit renters.

But these taxes aren’t just bad because they unfairly disincentivize a superior transportation option, we also can’t even figure out a way that they help Kentucky.

As of last year, there are 7,560 total EVs registered in Kentucky, so that’s $907k dollars per year from the registration fee, plus some amount from the public charging fee. That means the registration fee is enough to pay for about 25 miles of road, out of about 78,000 total miles of road in the state. Not much of an impact, there.

Now, if this were another state, one might be able to make the argument that local industry was trying to make a protectionist move in order to help the oil or automotive manufacturing industries.

But Kentucky hails itself as “the premier location in the United States to manufacture electric vehicles,” and is the third-largest coal-producing state. Coal may (rightly) be dying off as an industry in the US, but coal is used for electricity generation, and can be used to charge EVs. It can’t be used to power gas cars – and Kentucky doesn’t produce much oil at all.

So this doesn’t make any sense for Kentucky’s main historical industry, coal, and disincentivizing EVs doesn’t make any sense for Kentucky manufacturing if the state is trying to position itself as a good place for EVs.

And of course, it doesn’t help Kentucky citizens with their health bills. Kentucky has a high asthma rate (ranking 10th worst) and low life expectancy (5th worst). We know that higher levels of air pollution are bad for people, and we know that higher amounts of electric cars make areas healthier. So Kentucky could gain a lot from incentivizing EVs, instead of overtaxing them.

So here we have yet another example of a state falling to fossil fuel propaganda and harming itself in the process, when the obvious solution remains unused – a mileage- and weight-based usage fee, plus pricing to correct for the amount of pollution that each vehicle foists on us all (gas and electric). Happy new year, Kentucky. Consider voting in a legislature that isn’t hostile to you next time.

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Environment

The ‘most affordable’ DIY e-bike kit company just launched a new $349 version

Published

5 hours ago

May 21, 2024

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The 'most affordable' DIY e-bike kit company just launched a new 9 version

Swytch, makers of the self-proclaimed “most affordable” electric bike conversion kits out there, announced its newest model this morning. The UK-based company’s new Swytch GO kit comes with a super low pre-order price of just £299 (or US $349 for North American customers), though there’s a bit of a catch.

The catch is that’s the pre-order price if you don’t mind joining a waitlist, or you can pony up twice that figure for an immediate purchase.

Swytch has previously been overwhelmed by demand when the company has released past versions, and so this might be a way to smooth out production curves and moderate all of the immediate demand they see when launching new models.

One of the reasons Swytch has been so popular during past releases is that ultra-affordable entry price, though the sleek design and ease of installation surely don’t hurt sales either. With over 85,000 Swytch kits already on the road, according to the company, DIY electric bike conversions still seem as popular as ever.

As Swytch’s CEO Oliver Montague commented:

“This is an exciting time for Swytch. Consumers are looking for more affordable and sustainable transport options, and the Swytch GO Kit is the ideal solution. Installation has also never been easier, so anyone can enjoy the benefits that electric bikes have to offer.”

With the new Swytch GO kit announced this morning, the 250W front motor remains unchanged from previous versions of the kit, but a new velcro-mounting GO battery has been added, offering more mounting options.

The previous Air battery, which is still available as an alternative option to the GO battery, was mounted directly to the handlebars. With the GO battery, riders can now mount the battery inside of the front triangle. The increased mountain options make it easier to fit the kit on different styles of bikes.

Additionally, the GO battery comes in three versions of GO, GO+, and GO++, offering anywhere from 15 to 60 miles (25-100 km) of pedal-assist range. The Air battery was famous for being small enough to just about be carried in a rider’s pocket, though the GO batteries are still quite small and can easily be tucked in a bag to avoid being left on the bike in theft-prone areas.

Weighing between 2-2.6 kg (4.5-5.7 lb) depending on the model, the GO batteries are fairly lightweight and easy to handle. They’re also IPX6 rated to withstand all-weather riding, and are certified to UL standards for safety.

With just 250W of power from that front hub motor, the Swytch GO kit is designed for cycling-ready commuters who are already comfortable with pedal assist. However, throttle-loving riders will be happy to know that an optional hand throttle is offered as an accessory. It can be added to the kit (where allowed by law) to offer throttle riding with power on demand that doesn’t require pedaling to initiate.

It’s all part of Swytch’s efforts to continually update the technology and the practicality of their kits, as the company’s CTO Dmitro Khroma explained:

“Our company mission is to make e-bikes accessible to everyone. So in reaction to consumer economic pressures, we wanted to bring down the entry-level price point for customers to pre- order a Swytch kit to just £299, but without compromising on quality, performance, or the safety of our batteries. These quality and safety features include ensuring that the battery is water-resistant, impact-resistant, and shock-resistant, and has been thoroughly tested to the highest standards so they are safe to use and recharge at home.

By redesigning the battery pack with a larger form factor, embedding the power electronics inside the pack together with the battery, and designing a super-simple mounting solution that uses Velcro straps to strap the battery pack anywhere on the bike, we managed to bring down the price significantly. Plus, as an added bonus, the result was an e-bike kit that is even easier and faster to install, and with increased range of up to 60 miles.”

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Environment

Is this the interior of Tesla’s upcoming ‘Robotaxi’?

Published

11 hours ago

May 21, 2024

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Is this the interior of Tesla's upcoming 'Robotaxi'?

Tesla has released a new video that includes some footage of a previously unseen vehicle interior. Could it be an early concept of the interior of the Robotaxi?

For the last few years, Tesla has been working on a vehicle designed from the ground up to be a self-driving vehicles. The company has been referring to it as ‘Robotaxi’.

CEO Elon Musk insists that Tesla is still dedicated to delivering its promised self-driving capability to existing vehicles delivered since 2016 through software update, but it also decided to build a new vehicle designed entirely around the fact that it will be driverless.

Not much is known about the vehicle other than hints that it won’t have a steering wheel or pedals, and that it will be “Cybertruck-like” in terms of design.

Now, Tesla has released a new video, which Musk wanted to make clear he wasn’t involved in, to try to encourage shareholders to vote for his $55 billion compensation package and moving the company’s state of incorporation to Texas:

Environment

Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

Published

16 hours ago

May 20, 2024

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Mercedes-Benz just opened more DC fast chargers at Buc-ee’s in Texas

Mercedes chargers Buc-ee's — Photo: Mercedes-Benz High-Power Charging Network

Mercedes-Benz High-Power Charging just opened more DC fast chargers at Buc-ee’s stores in the Dallas-Forth Worth area.

Three new Mercedes DC fast charging stations are at Buc-ee’s in Fort Worth, Temple, and Royse City. Mercedes asserts that every one of its chargers offers up to 400 kW of power.

It’s also adding 12 more charging stations at Buc-ee’s in the Dallas-Fort Worth, San Antonio, and Houston metro areas – also known as the Texas Triangle, home to 68% of Texans:

Buc-ee’s isn’t your typical convenience store – they’re huge, with some stores covering over 50,000 square feet, and they offer a wide variety of items, including snacks, beverages, fresh food, clothing, home decor, and Texas-themed merchandise. It’s known for its homemade fudge, jerky, and beaver nuggets (caramel-coated corn puffs). Most Buc-ee’s locations are open 24 hours a day, seven days a week.

In November 2023, Mercedes announced it had made an agreement with Buc-ee’s to build EV charging hubs at most of its existing stores. Mercedes is aiming to have around 30 online by the end of the year. There are currently 48 Buc-ee’s locations across the US South, 34 of which are in Texas.

When I spoke to Mercedes-Benz High Power Charging CEO Andrew Cornelia last year, he was passionate about the importance of placing EV chargers near amenities that travelers need.

Mercedes offers open access for all EV drivers, including roaming with other charging networks. Its charging hubs support contactless payments with credit cards or smartphone wallets.

The first Mercedes DC fast charging station came online last November at its headquarters in Sandy Springs, Georgia. Mercedes-Benz plans to deploy 2,500 high-powered chargers in 400 hubs by 2027.

Texas is the US’s No. 1 producer of clean energy and ranks fourth in public EV charging. However, to meet driver demand, the state needs around 95,000 more public chargers by 2027.

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