Utah’s electric vehicle drivers will soon pay more to charge their cars, all to subsidize lower gas prices.
In July, gasoline prices in Utah will drop thanks to a gasoline tax cut from 16.5% to 14.2%, but EV drivers will have to pay a 12.5% tax to use commercial charging stations. These measures are part of House Bill 301was signed into law by Utah Governor Spencer Cox on March 22.
2023 Cadillac Lyriq at the EVgo DC fast charging station.
In January, Utah’s gasoline tax was automatically increased from 4.5 cents to 36.4 cents per gallon (for both gasoline and diesel) under legislation enacted in 2015, but HB 301 reduced it by 2 cents per gallon, according to traffic theme. In an interview, the bill’s sponsor, Representative Mike Schultz (R-Hooper) said the gasoline tax “has been rising much faster than any of us thought” and lowering it is ” the right thing to do.”
However, electric car drivers will now have to pay more to charge their cars. The new law also increases registration fees for electric vehicles, plug-in hybrids and hybrids. So the lower gas prices that are in effect are mitigated by increased taxes and fees for drivers of plug-in cars. The state is becoming an economist, subsidizing fuel costs, when beneficial cost of ownership for electric vehicles.
Toyota bZ4X 2023 at EVgo . charging station
Although a recent study shows the high initial cost of electric vehicles remains an important barrier for EV adoption, the cost of ownership is typically lower thanks to less routine maintenance and yes, the cost of charging an EV is lower than refueling a petrol or diesel car. What is the cost of ownership advantage of electric vehicles? even more powerful for SUVs and pickupsanother study showed.
While a charge tax like the one established in Utah can change the equation over the price of gas, owners will be able to deposit other savings in the bank. Plug-in hybrids and EVs cost less to repair than non-electric vehicles, according to the 2020 Consumer Reports Research.
