DRIVERS have been left fuming over an odd new plan that seemingly punishes them based on their car.
Decision-makers in Maryland are weighing up the introduction of a highway-use fee for motorists – in a bid to address the declining fuel tax revenue.
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House Bill 1457, should it go into effect, would require certain alternative fuel vehicles, fuel-efficient vehicles, and plug-in electric vehicles to pay an annual highway-use fee ranging from $5.83 to $182.
This is based on an average of 11,245 miles driven, or on the miles they drive by participating in a Mileage-Based User Fee (MBUF) program.
As reported by Fox News Baltimore, HB1457 sponsor Maryland Delegate Jared Solomon said: “This is about equity.
“So if you are poor and you can’t afford a new car you are not going to get hit with this because we know you are paying more on gas tax than someone who was able to go out and buy a brand new car even if it’s not an EV they are paying significantly less gas tax and the gas tax is falling disproportionately on low-income folks who are driving older vehicles.”
Solomon added that the average Maryland driver hits around 12,000 miles a year, with a fuel efficiency of 25 miles per gallon.
If passed, the bill would also bring in a highway use fee in addition to the fuel tax for drivers who achieve 25 miles per gallon or more, and would also replace the newly passed EV registration fee of $125.
Maryland Senator Justin Ready is strongly against the bill – citing privacy concerns and more taxes on drivers.
He said: “We have some of the highest gas taxes already in the country.
“So this is something that would just add to that burden in Maryland.
“They always want to punish the drivers.”
But EV drivers say they understand and agree with the proposal.
Baltimore County resident Chip Smith said: “I can understand the logic.
“Maintenance of the highways and roads, which is an issue in our city, is done through our gas tax, so if there’s going to be a reduction in gas tax income because more people are going electric, then there has to be some way to recuperate that.”
Another Baltimore County resident, Elisabeth Eber, added: “To be part of paying for good roads, easy transport, and more environmentally sound buildings.
“I think I feel like it’s an important part of being an American citizen.”
Solomon maintains the reason behind the bill is the annual drop in gas tax revenue, partly due to the increased use of more fuel-efficient and electric vehicles.
It’s thought that gas tax will drop by another 300 million dollars by 2031, according to the Eastern Transportation Coalition, and the sponsors of HB1457 say this would be an alternative to help offset the costs.
Senator Ready disagrees and is proposing Senate Bill 0557 – which would prevent the state or local jurisdictions from mandatory vehicle-miles-traveled tax.
Senator Ready said: “The problem in our transportation trust fund is not that we don’t collect enough gas tax.
“Gas tax revenue is declining even though we increase it every year.
“The problem is we have a mass transit system that it’s sucking money out of the transportation trust fund and not going anywhere close to offsetting any of its cost.”
This bill would not include mopeds, motorcycles, or vehicles over 26,000 pounds, with this model based on a similar one already adopted in Virginia.
How to spot add-on fees at the dealership
The Federal Trade Commission is cracking down on dealerships that charge buyers unfairly.
However, as many transactions aren’t spotted due to electronically signed documents, many added-on fees aren’t spotted. Here’s how the agency says you can spot them.
- Demand a physical copy of the sales contract or invoice, and read it carefully. Customers aren’t required to pay for add-ons they don’t want, like nitrogen-filled tires, paint protectant, wheel and tire insurance, etc.
- Be sure you understand the total cost, not just the monthly. Make sure the total cost is in writing so you can get an idea of how other fees play into the monthly fee. If it’s different from what you originally agreed on, the dealer may be adding fees.
- Explore your options for financing. First, check with your bank, as they can give better rates on auto loans depending on your credit. Bring a hard copy of your preapproval notice to entice the dealer to meet or beat those terms.
- If you’ve been charged illegally, the FTC encourages you to report it.
Source: FTC
