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Vermont Considers Mileage-Based EV Tax

It's a way of shrinking the tax revenue gap caused by electric vehicles.

As a way of shrinking the tax revenue gap caused by electric vehicles, Vermont is considering a new mileage-based fee for EV drivers.

According to VT Digger, the state DMV could use its annual odometer readings to calculate how much EV drivers owe.

As the report points out, the fees would be close to what drivers pay in gas taxes, which on average is $150 per year.

โ€œ[Itโ€™s] really not a new fee. Itโ€™s just a different kind of road usage charge,โ€ said Patrick Murphy, sustainability and innovations project manager at the Agency of Transportation.

The bill also proposed a higher vehicle registration fee for hybrid vehicles.

The proposal has received some pushback. A representative from the Vermont Sierra Club told the publication it might discourage some consumers from buying EVs.

The proposal is part of a larger transportation bill, which has already cleared the Vermont state house and now heads to the state senate.


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