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Utah EV drivers will soon be paying more to charge their vehicles, all to subsidize lower fuel prices.
In July, fuel prices in Utah will drop thanks to lower fuel taxes, which will be reduced from 16.5% to 14.2%, but electric vehicle drivers will pay 12.5% tax for using commercial filling stations. These measures are part of House Bill 301, which was signed into law by Utah Governor Spencer Cox on March 22.
The 2023 Cadillac Lyriq at the EVgo DC fast charging station.
In January, Utah’s gas tax saw an automatic increase of 4.5 cents to 36.4 cents per gallon (for gasoline and diesel) under a law enacted in 2015, but HB 301 lowered it by 2 cents per gallon, according to Topics. Transportation. In an interview, the bill’s sponsor, Representative Mike Schultz (R-Hooper) said gas taxes “have been increasing a lot faster than we thought” and lowering them was “the right thing to do.”
But EV drivers will now pay more to charge their cars. The new law also increases registration fees for electric, plug-in hybrid, and hybrid vehicles. So the lower fuel prices are actually subsidized by increased taxes and fees for plug-in car drivers. The state becomes an economist, subsidizing the cost of gasoline, when the cost of ownership supports electric vehicles.
2023 Toyota bZ4X at the EVgo charging station
Although one recent study found that the high initial cost of EVs remains a critical barrier to EV adoption, ownership costs are generally lower thanks to less regular maintenance requirements and, yes, lower costs of refueling EVs compared to fueling up a car. gasoline or diesel. . EV cost-of-ownership advantages are getting stronger for SUVs and pickups, another study has found.
While charging taxes such as those instituted in Utah can change the equation versus gas prices, owners must be able to save other savings. Plug-in hybrids and EVs cost less to repair than non-electric vehicles, according to the 2020 Consumer Reports Study.
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