Registration fees for EVs in MI

rmins

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Edit: I've gotten a lot of feedback and realize this was an incorrect post. Appreciate the comments on this one. Makes more sense that MI charges based on a few factors and only includes a $140 "gas tax" for EV registration.

The registration fees in MI are roughly 300$ more for an EV than a gas guzzler. This wipes out a lot of the cost saving incentives of driving an EV. Am I wrong in this thinking? A few of the articles I reviewed stated that EV owners pay more in transportation related taxes than comparable gasoline vehicles.
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I think if an extra $300 on your registration is enough to make a car unaffordable to own and operate, then you need to reevaluate your finances. Keep in mind that you aren’t paying state gas taxes, which are 28.6 cents a gallon. If you are replacing a 30 MPG car, and do 12K miles a year, you’re no longer spending $114 on gas taxes.
 
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rmins

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I think if an extra $300 on your registration is enough to make a car unaffordable to own and operate, then you need to reevaluate your finances. Keep in mind that you aren’t paying state gas taxes, which are 28.6 cents a gallon. If you are replacing a 30 MPG car, and do 12K miles a year, you’re no longer spending $114 on gas taxes.
I suppose I mistated in my OP, but finances aren't the issue, rather that it is not fair. Why am I paying roughly 300$ more (200$ more if factoring in the 114$ on taxes) than a gasoline car? (My math is 154$ registration fee for a gas car plus the 114$ you calculated minus the 416$ registration fee for the Mach e).
 

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I suppose I mistated in my OP, but finances aren't the issue, rather that it is not fair. Why am I paying roughly 300$ more (200$ more if factoring in the 114$ on taxes) than a gasoline car? (My math is 154$ registration fee for a gas car plus the 114$ you calculated minus the 416$ registration fee for the Mach e).
looking for "fairness" in government fees is soul smashing. I'd avoid it.

Just a thought, but a lot of Bro-dozer drivers likely feel similarly about EV drivers getting a federal tax credit...
 

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The registration fees in MI are roughly 300$ more for an EV than a gas guzzler. This wipes out a lot of the cost saving incentives of driving an EV. Am I wrong in this thinking? A few of the articles I reviewed stated that EV owners pay more in transportation related taxes than comparable gasoline vehicles.
EVs don't pay the gas tax that pays for the roads. That's the rationale for higher fees on EVs
 


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In Indiana, the additional fee is a "EV Surcharge". How is it described in Michigan? It replaces losses from not paying gas taxes at the pump. I assume it is based on 15,000 miles of driving in your car. 15k is about the average cars are driving every year according to the Feds. My surcharge doubled my license cost last year.
How you could fix it without reporting your mileage every year is a problem. Especially as there are some that would lie about their mileage or object going into a DMV office so someone could read your odometer.
 

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I suppose I mistated in my OP, but finances aren't the issue, rather that it is not fair. Why am I paying roughly 300$ more (200$ more if factoring in the 114$ on taxes) than a gasoline car? (My math is 154$ registration fee for a gas car plus the 114$ you calculated minus the 416$ registration fee for the Mach e).
You are not accounting for the gas taxes that you aren't paying anymore.

If its any consolation: Our RV's registration cost about the same as the Mach-E's ! LOL (As we still get to pay the gas tax for that.)
 

RickMachE

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The registration fees in MI are roughly 300$ more for an EV than a gas guzzler. This wipes out a lot of the cost saving incentives of driving an EV. Am I wrong in this thinking? A few of the articles I reviewed stated that EV owners pay more in transportation related taxes than comparable gasoline vehicles.
You are not correct.

EVs are charged $140 more, period. It replaces the gas tax. Specifically stated on the renewal.

https://www.michiganada.org/vehicle...uary 1, 2022, the,increased from $235 to $240)

Now, let's address your math challenges...

EV in Michigan costs around 5 cents per kilowatt mile. Gas prices is $3.33. Let's assume 25mpg per gallon, 12,000 miles a year.

12,000/25=480 gallons x $3.33 = $1,598.40 vs 12,000 x .05 = $600. So, even your wrong numbers aren't correct in your assumptions.

$600 EV cost + $140=$740 on a gas vehicle would have to get 222mpg to be the same cost.
 

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I suppose I mistated in my OP, but finances aren't the issue, rather that it is not fair. Why am I paying roughly 300$ more (200$ more if factoring in the 114$ on taxes) than a gasoline car? (My math is 154$ registration fee for a gas car plus the 114$ you calculated minus the 416$ registration fee for the Mach e).
I looked up Michigan’s registration fees. The bulk of it is based on the car’s MSRP (0.5 percent), which is $250 for a $50K car. There is an extra $140 electric vehicle fee tacked on which corresponds closely to the state gas tax fees that aren’t being paid for a 30 MPG car that is driven 12K miles a year.

Is this your first new car over $50K?
 

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480 x .286 = $137.28 in gasoline taxes for an ICE vehicle/year vs. $300 for an EV (unless ICE vehicles pay an additional $160+ fee, which is doubtful and does not occur here). Perhaps this is what OP was referring. Otherwise, if only $140 the fee is reasonable.
Other registration fees are equal, purchase price based.
Should EVs pay for infrastructure? Of course.
Do EVs cost less than ICE vehicles to operate? Of course (currently).
Are all vehicles treated fairly? Absolutely not. Many jurisdictions around the country spend large sums on "bicycle" lanes, etc. At the same time leading bicycle operators to believe that they do not have to obey rules/laws of the road. These "bicycles" are now motorized and capable of routinely exceeding the speed limit, often on sideWALKS. Do they pay fees and taxes for road use? Not one red cent. Are they registered, licensed or insured? No.
What is the consequence when a few hundred pounds challenges a multi-ton vehicle (F=ma)?
If you are looking for some sort of equity, perhaps you should re-evaluate.

footnote: 60 years ago bicycles were licensed. You went down to the local fire/police station, passed a rules of the road test, were issued a license/registration and a license plate (usually attached to back of seat or rear fender). No cost. It was part of the educational system we once had, designed to keep kids safe and help them become good citizens.
Novel concept.
 
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Kamuelaflyer

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Last year at this same time I posted about the same thing : https://www.macheforum.com/site/threads/vehicle-registration-costs-and-fees.12443/post-303679

In summary, it’s tragic, it’s unfair, and it’s the way it is.

Oh and by the way, my registration this year in California is almost $800. I’d gladly trade mine for yours.
If you use the roads (and every vehicle does), you’re going to have to pay for road maintenance without exception. How do you want to do that? Extra registration fees are the most common.

I was part of a pilot project out here that used a small GPS device tracking my cars position. The proposed fee structure would have eliminated the state’s portion of the gas tax replacing it with a fee structure based on mileage and weight paid at registration time. the result was for most people was a significant fee reduction, a modest hike from our very low $60 annual fee for ev’s, and a significant hike for commercial trucks (real commercial use, not simply those with state mandated commercial plates). All vehicles would pay the same weight and mileage fee rate.

Each year, your registration fees would be determined (plus the usual administrative fees snd tax) on your mileage from the previous year as gathered during the annual mandatory safety inspection and gvw. Or you could opt for the gps device which would also account for private road usage.

I liked the idea as it shifts the burden of paying for the road upkeep onto those who use the roads and have the greatest effect on those roads — high mileage drivers and heavy vehicles. The proposal died as the trucking and ev lobbyists successively argued it was too expensive and would result in fraud.

It’s unfortunate, but the roads still need to be paid for. That should fall proportionately on those who impact it the most.
 
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rmins

rmins

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I looked up Michigan’s registration fees. The bulk of it is based on the car’s MSRP (0.5 percent), which is $250 for a $50K car. There is an extra $140 electric vehicle fee tacked on which corresponds closely to the state gas tax fees that aren’t being paid for a 30 MPG car that is driven 12K miles a year.

Is this your first new car over $50K?
Was not aware of that. Yes this is my first car over 50k. My previous car was a used 2014 chevy Cruze that I purchased for 8k. Thanks for the clarification!
 

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If you use the roads (and every vehicle does), you’re going to have to pay for road maintenance without exception. How do you want to do that? Extra registration fees are the most common.

I was part of a pilot project out here that used a small GPS device tracking my cars position. The proposed fee structure would have eliminated the state’s portion of the gas tax replacing it with a fee structure based on mileage and weight paid at registration time. the result was for most people was a significant fee reduction, a modest hike from our very low $60 annual fee for ev’s, and a significant hike for commercial trucks (real commercial use, not simply those with state mandated commercial plates). All vehicles would pay the same weight and mileage fee rate.

Each year, your registration fees would be determined (plus the usual administrative fees snd tax) on your mileage from the previous year as gathered during the annual mandatory safety inspection and gvw. Or you could opt for the gps device which would also account for private road usage.

I liked the idea as it shifts the burden of paying for the road upkeep onto those who use the roads and have the greatest effect on those roads — high mileage drivers and heavy vehicles. The proposal died as the trucking and ev lobbyists successively argued it was too expensive and would result in fraud.

It’s unfortunate, but the roads still need to be paid for. That should fall proportionately on those who impact it the most.
I have no issue with paying for road maintenance. I, and the OP have an issue with EV’s being charged more than gas cars.

the proposal for pay per mileage would be great. Most California EV owners also have a second (gas) car in the family used for longer trips, so theoretically our costs would/should be cheaper. I got my Mach E Feb 2021 and in two years i’ve only put 13,000 miles on it.
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