GM REACTS TO STATE OF WASHINGTON'S PROPOSED EV SURTAX

By Suzanne Ashe, Automotive News - The Washington State Senate last month passed a bill that would charge electric car owners $100 per year to compensate for not paying gas taxes.

In response, GM Director of Government Affairs Hal Lenox sent a letter to Washington Gov. Chris Gregorie asking the surtax be removed, calling the bill "unfair".

If signed into law, the tax would only apply to owners of the all-electric vehicles. The bill excludes vehicles like the Chevrolet Volt, which can run part of the time on gas. Still, GM spoke out against it.

GM officials say that because of the high cost of electric vehicles, it is not in a state's advantage to set a higher barrier of entry for first-time electric vehicle buyers. Plus, the proposed law seemed to single out EV owners for an unfair tax.

The letter states that higher prices of electric vehicles already present a barrier to consumers. By placing an additional surtax on these vehicles, it creates a disincentive to consumers.

The letter also states that because there are so few electric vehicles in the state of Washington, money generated by the tax would be negligible.