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Published January 30, 2006 11:10 pm - State officials deny reports about tax on hybrid vehicles By Evan Belanger State officials denied this week unconfirmed reports that law makers are planning a $2,000 sales tax to be placed on all hybrid vehicles sold in the state.
The tax was said to be aimed at making up for lost revenue that usually comes from taxes on gasoline and diesel fuel. "They're (hybrid cars) really not prolific enough in Alabama to impact our tax structure much," said Rep. Jeremy Oden, R-Vinemont. "I don't know of anything concerning hybrid cars being talked about right now." "We've got so many problems we're trying to deal with right now, I don't foresee anything about that coming up this session," said Rep. Neal Morrison, D-Cullman. While both men said they thought the government should encourage consumers to buy hybrid cars — Oden's parents actually own one — that is not the unanimous opinion held by lawmakers across the country. While traditionally road construction and up-keep programs are paid for through gasoline and diesel taxes, the hybrids, have some lawmakers worried. According to the Environmental Protection Agency, some of the tiny fuel-sippers, can average an incredible 68 miles per gallon. In addition, as oil prices top $68 a barrel this week and consumer confidence in hybrids continues to climb, the vehicles are gaining in popularity. According to the hybrid-friendly Web site www.hybridcars.com, the little economizers accounted for approximately 1.2 percent of all automobile purchases in the U.S. last year, some 205,749 cars. In states like California, where hybrids enjoy a higher-than-average popularity, that can take a big chunk out of tax revenue. According to the U.S. Energy Information Administration, approximately 20 percent of the cost every gallon of gas is accounted for in taxes, some 44 cents per gallon. While current tax law dictates a tax break of up to $2,000 for hybrid owners, some lawmakers are considering disincentives for the hybrids. CNN reported that California lawmakers were considering a "tax by mile program." According to the report, drivers in Oregon could also be up for the gallons to miles change, meaning that drivers of hybrids would pay the same rate as drivers of Hummers. According to the aforementioned Web site, researchers at the University of Oregon used 280 drivers to test out the devices. They hope the devices will enable lawmakers to charge only those drivers that live in the state and only for the miles they drive in the state. 
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