CLEVELAND, Ohio (WOIO) -It wasn’t long ago federal and state tax laws encouraged people to buy electric cars in the form of tax credits.
The federal government is not only getting rid of that bonus for the more popular vehicles, states are about to smack those cars with new fees and taxes.
Even though electric and hybrid cars only make up about 2% of the vehicles on the road, it’s expected in the coming years that number will jump dramatically.
The problem for states is with those car owners not pumping gasoline, they’re not paying the gas tax.
That tax is used for infrastructure improvements like roads and bridges.
So some states, including Ohio, are acting now before gas tax fund takes a bigger hit.
Here are the new fees, that will be charged in addition to registration fees on electric or hybrid cars in Ohio starting Jan. 1, 2020:
- Electric - $200/year (or less than $17 a month)
- Hybrid - $100/year (or just over $8 a month)
“The funds go to the exact same place as the motor fuel tax, road and bridge maintenance and repair,” according to Matt Bruning with the Ohio Department of Transportation (ODOT). “Until now, drivers of electric vehicles have paid nothing toward upkeep of the road system they use. Hybrid drivers have paid only with the gasoline they use.”
Another new law that will go into effect in Ohio in 2020, is starting July 1 vehicles in Ohio will no longer be required to have a front license plate.
This controversial law was passed in 2019 only because it was slid into the budget that was approved and signed by the governor.
Law enforcement agencies don’t like it because it could make it harder to identify vehicles, especially at intersections equipped with license plate readers.
Many in Ohio have pushed for a raise of minimum wage to $15.00/hour.
While that won’t happen, the state will raise the minimum wage from $8.55 in 2019, to $8.70 starting Jan. 1, 2020.
For tipped employees the minimum wage goes to $4.35.