Oklahomans battling over the cost of NEVs. Should they be free?
Wheego Whip - click above for high-res image gallery
Low-speed, neighborhood electric vehicles are an interesting case. No one thinks of them as "real cars" – although the Wheego Whip, above, tries to be the Cadillac of NEVs – but they certainly serve a purpose and can meet the transportation needs of some people, some of the time. But, should they be free?
Keith Andrews, president of Fairplay Cars, sent in some background information about a controversy brewing in Oklahoma that, at least for now, makes some NEVs effectively free. The state offers a huge tax credit towards purchasing an NEV, but the Oklahoma Tax Commission is campaigning to "black list a significant number of street legal electric cars from the states healthy tax credits now in place," Andrews wrote. The trouble revolves around the difference between a LSV and a golf cart. According to Andrews, the low-speed vehicle makers in favor of the plan pointed out in court that Oklahoma has already defined what is and is not a low-speed vehicle – based on NHTSA rules – and therefore "should adhere to its own standard and confirm approval of all LSV's that qualify on the Federal level." The Oklahoma Tax Commission has promised to appeal to the state Supreme Court, saying the decision could cost the state over $40 million. Read more from Andrews after the jump.
[Source: News 9, WSJ, Keith Andrews]
STATEMENT:
The emergency order by the Oklahoma State Tax Commission in mid-September was said to add clarity to the definition of what a low speed vehicle is. The reference to "golf car like" is at best a subjective opinion and not a legal description. This issue was not raised during the past few years of similar cars being sold and tax credits issued. The motivation for the OSTC may have been the results of a perfect storm. When the state tax credit is combined with the Federal tax incentive - the cars are free. This has driven demand through the roof and means a lot of lost tax revenue for the state of Oklahoma.
In a few days our company, along with other manufacturers from around the country and distributors from Oklahoma will be in a court room in Enid, Oklahoma.
We will raise the following points:
- The low speed vehicle (LSV) has been defined by the National Highway Traffic Safety Administration 49CFR 571.500
- The state of Oklahoma agreed to use this as the criteria to define this (see current web site below)
- Manufacturers of the low speed vehicles must comply to those standards and based on this already qualify
- Some of the vehicles on the "approved list" published by the Oklahoma State Tax Commission are "golf car like" therefore not consistent with the ruling imposed on the other manufacturers who have been denied.
- In order to offer some rational objectivity to the situation, the state of Oklahoma should adhere to its own standard and confirm approval of all LSV's that qualify on the Federal level.
The confusion and delays caused by the emergency orders have hurt the EVE LSV manufactured by Fairplay Electric Cars and resulted in lost sales opportunities to those "approved" LSV's. The sunset on the Federal tax incentive is the end of 2009. We have only a limited window of time to win back our potential customers and supply our loyal dealers the products they need to fill demand (statement send in mid-October).
Reader Comments (Page 1 of 1)
Throwback 3:21PM (11/09/2009)
Are you saying due to the tax break, the cars cost the purchaser nothing?
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paulwesterberg 4:51PM (11/09/2009)
from http://www.zenncars.com/
Purchasers of a ZENN low speed electric vehicle purchased in 2009 may qualify for an income tax credit of 50% of the purchase price. Qualifying purchases are electric powered vehicles designed for use on public roads. The Oklahoma Tax Commission lists qualifying vehicles on its website. The credit can be claimed when filing a 2009 tax return.
Purchase an all-electric zenn for as little as $6000:
http://www.zenncars.com/media/press_rel/10_09/Oklahoma.pdf
Federal tax credits for electric vehicles may also apply. Zenn has a dealer in Oklahoma City.
The nearest tesla dealership is in Boulder, Co which is well beyond its 240 mile range.
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Tim 5:04PM (11/09/2009)
Get you FREE electric car NOW. Offer expires 12/341/09 because that's when Congress says it does....
http://www.youtube.com/watch?v=uzrf7sMGsgw&feature=pyv&ad=3266793116&kw=electric%20car&gclid=CJ674I7E_p0CFc5L5QodTVB1pg
Why pay taxes when you can get a FREE electric car instead? It's called "gaming the progressive redistribution system" and it happens EVERY minute of EVERY day. ;o
Nineteen Neglected Consequences of Income Redistribution:
http://www.independent.org/newsroom/article.asp?id=1155
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Tim 5:27PM (11/09/2009)
Don't want to pay federal income taxes?
Remember, there is a $6,500 tax credit (dollar for dollar) for each electric car you buy and there si no limit to how many electric cars you can buy.
Step 1) Calculate your federal tax liability
Step 2) Buy enough qualifying NEVs to absorb that liability.
Step 3) Sell those cars for quick, laundered & tax free cash.
(Progressive politicians are NOT rocket scientists)
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Korben 5:27PM (11/09/2009)
Considering the cost and functionality of an NEV, i can't see how anyone can bring themselves to purchase one. In my opinion paying more than $6000 is unrealistic.
Gem Car is as cheap as they come.
http://gemcar.com
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Korben 5:28PM (11/09/2009)
Considering the cost and functionality of an NEV, i can't see how anyone can bring themselves to purchase one. In my opinion paying more than $6000 is unrealistic.
Gem Car is as cheap as they come.
http://gemcar.com $7500 to $15000, basically for a street-legal golf cart (25 MPH)
You could buy a used on on Craigslist for $2500 - $5000
Wheego Whip is much like (if not IS) a Flybo, a normal ICE car converted to an EV. If permitted the Wheego could do freeway speeds, but the NHTSA will never let that happen (unless Millions of $$ are spent on "safety" testing). I'm would bet that the actual cost of the Whip is $7-8k, but after advertising and low sales... it has to be priced at $15-20k.
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JPR 8:07PM (11/09/2009)
I have owned a 2005 Gem for one year. I use it for all my errands within a 10 mile radius of my house. In San Diego where I live, the climate is perfect all year to use the Gem. The Gem has been very reliable transportation. Nev's can help reduce our foreign oil dependency.
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cheesegypsy 12:39AM (11/10/2009)
There's an impressive number of conservative flamers to be a green auto forum. My parents, no liberals they, live in a town that allows golf carts to run on all the streets but the main highway, and they purchased an electric model about a year ago. They now drive it, in lieu of their gas-guzzling Jaguar, to the grocery store, to the library, friend's houses, the bank, and just about everywhere else. If the purpose is to incentivize the reduction of fossil-fuel use, then you could do worse.
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Throwback 8:29AM (11/10/2009)
You assume that fiscal conservatives don't want to reduce our dependence on foreign oil. Speaking for myself, I do. I just don't believe the answer to every problem is more taxes. Here is what happens when you have a poorly written tax law;
"The Oklahoma Tax Commission has promised to appeal to the state Supreme Court, saying the decision could cost the state over $40 million."