Connect with us

Hi, what are you looking for?

Image Credit: <a href="">California Flag</a> via Flickr CC


California Considering Bill To Cut Sales Tax On “Green” Cars By Half

The government of California (the legislative branch) is currently considering a bill that will potentially reduce the sales tax on “green” cars sold in the state by more than 50%, according to recent reports.

Green cars in this case refers to battery electrics, plug-in hybrids, and hydrogen fuel-cell vehicles. Can’t say I understand the repeated inclusion of hydrogen cars in these sorts of moves — can anyone really, with a straight face, claim that hydrogen cars are green? Or even sensible, in any regard at all?

Image Credit: California Flag via Flickr CC

Anyway… if approved, the bill will see the tax on these vehicles reduced to 3.06%, down from 7.5% where it stands now — a big cut. I don’t really agree with many of California’s decisions (many of them are terribly uneconomical), but I think that this is probably a pretty good idea. Probably one of the best approaches out there to supporting electric vehicle (EV) adoption when it comes down to it, now that I’m thinking about. And the health and financial savings that come from EVs warrant it.

It should be noted here that a similar bill was actually introduced back in 2013, and didn’t manage to make it all the way through the process — reportedly over funding concerns, according to the Los Angeles Times.

The reintroduction of the bill is partly due to Governor Jerry Brown’s recently revealed and relatively ambitious emissions targets — as well as an “improved” situation with regard to finances, according to the bill’s author, Democratic Assemblyman Phil Ting.


According to Ting, a good solution could be making up for the revenue shortfall expected by the tax cut via the funds gathered under the state’s cap-and-trade program. While these funds (969 million as of mid February) have already been allocated in the state budget, the point seems to have some merit to it — to my eyes, anyway.

The expected shortfall from the tax cut would be roughly $92 million a year, according to the Los Angeles Times — based on 2014 sales figures, and an average price of ~$35,000 per vehicle. With EV sales in the state continuing to grow, though, the actual figure could end up notably higher than $92 million a year.

Overall, the bill sounds like a good idea to me, but I still can’t help but be slightly irritated at the thought of hydrogen vehicles (like the Toyota Mirai) getting that tax cut as well.

Image Credit: California Flag via Flickr CC

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.


You May Also Like


Who has the most power in America? Oil companies? Political parties? Elon Musk? Nope, nope, and nope. The correct answer is insurance companies. Insurance...


States with decarbonization goals must plan, prepare, and test for long-duration energy storage

Climate Change

LLNL and the Clean Air Task Force have released a new report "Sharing the Benefits: How the Economics of Carbon Capture and Storage Projects...


BMW is stepping up from vehicle-to-grid EV charging to kick vehicle-to-everything (V2X) into gear, with an assist from the California utility PG&E

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.