Live in California and looking for more money in your wallet upon purchasing a green vehicle? The state's legislature just might make that wish come true.
The Los Angeles Times reports a bill sponsored by Assemblyman Phil Ting of San Francisco would reduce the sales tax on so-called clean vehicles from 7.5 percent to 3.06 percent. The reduction would be applied to EVs, PHEVs, FCVs and CNG-powered models.
Should the legislation become law, over $92 million in tax revenue would disappear between 2016 and 2020, when the law rides off into the sunset; the figure is based on 60,000 PHEVs and EVs sold in 2014 for the national average transaction price of $34,725 per vehicle. Said revenue could be regained through California's cap-and-trade carbon emissions credits program, currently holding $969 million as of February 18 per the California Air Resources Board.
The bill, which failed in 2013 due to funding concerns amid a shaky economic environment, will go through the committee process before arriving on the Assembly floor for voting later this year.
The post California Legislature Considering Sales Tax Reduction For Clean Vehicles appeared first on The Truth About Cars.
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