A bill that would reduce the purchase price of alternative fuel vehicle by roughly $500 to $1,000 was announced Friday by South Bay Assemblyman Al Muratsuchi.
Muratsuchi made the announcement in front of the Hermosa Beach city hall electric car charging stations because of the city’s leadership on environmental issues, he said. Attending the announcement were a dozen local electric car owners, representatives of electric car manufacturers GM, Honda and Nissan, Hermosa Mayor Kit Bobco and councilman Jeff Duclos.
Muratsuchi’s bill, AB 1077, would reduce the basis for the sales tax and annual vehicle license fees by an amount equal to the the car’s federal tax credit, the state’s portion of the sales tax and .65 percent of the annual registration fee.
Muratsuchi said purchasers of alternative fuel vehicles currently pay disproportionately high state fees because alternative vehicles cost more than gas-powered vehicles.
A chart he distributed showed that a Ford Focus EV, at $39,200, is $13,000 more than a conventional Ford Focus. A Toyota Rave 4 EV, at $48,500, is $20,000 more than a gasoline Rav 4. AB 1077 would reduce the tax basis on the vehicles by about $10,000 each because of the $7,500 federal tax credit and the $2,500 state clean vehicle rebate.
Speaking in support of the bill was Torrance City Council candidate and Plug in America officer Tim Goodrich.
“A gallon of gas in a war zone costs $400. Another cost is loss of life. We lose an average of one life for every 25 military convoys in the Middle East because gasoline is explosive. In addition we send $250 million annually for oil to countries that don’t necessarily share our values,” said Goodrich, who served three military tours in the Middle East.
Muratsuchi’s bill is scheduled to be heard by the Assembly Revenue and Tax on May 5. ER