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Al Muratsuchi’s Bill Could Lower Plug-In Car Taxes in CA


tesla-roadster-7A new bill to make plug-in vehicles a little less expensive has been announced in California. The Assembly Bill AB1077 suggested by Assemblyman Al Muratsuchi, if passed, would generally decrease the taxes imposed on plug-ins by implementing a post-incentive valuation of the cars rather than a pre-incentive price. This would result in a reduction in price of around $500 to $1000, based on the vehicle in question.

The bill was announced at a press conference held at the Hermosa Beach city hall charging posts for electric cars, witnessed by some local electric vehicle drivers as well as representatives of General Motors, Honda, Nissan and Plug-in America.

With consumers in California currently paying the same 8% taxes for regular cars on electric vehicles as well, Al Muratsuchi showed that consumers who patronised plug-in vehicles were being charged over the top by the state since alternative fuel cars are generally priced higher than regular vehicles.

He demonstrated this with a chart showing that, for instance, a regular Ford Focus costs $13,000 less than the Focus EV which has a price of $39,000. Another example is the gas-powered Toyota Rav 4 costing $20,000 less than the Rav 4 EV priced at $48,500.

The AB1077 bill proposed a reduction in tax for plug-ins of about $10,000 each, depending on the vehicle. This would be possible with the combination of a federal tax credit of $7,500 and the state’s clean vehicle rebate amounting to $2,500.

The bill has received backing from electric vehicle stakeholders including carmakers, but in order to become law, must go through both houses. The Revenue and Tax Committee of the Californian Assembly will hear it on May 5.

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