Michigan Republican leader signals support for higher taxes on electric vehicles

(FOX 2) - The Michigan House speaker has endorsed a plan to raise taxes on electric vehicles in an effort to find more funding for road construction.

It's not the typical Republican talking point, but as Rep. Matt Hall (R-Allegan) said Wednesday, if money is needed - it wouldn't be the worst place to start.

Big picture view:

The Michigan legislature and governor are both looking for better avenues to fund the state's road infrastructure. 

On Wednesday, the GOP Speaker of the House said one possible solution is a tax increase on motorists who own and drive an electric vehicle.

He told FOX 2 they should "pay their fair share."

"You don't see that happening," Hall said. "So if we are going to look for new revenue, I think we should look at these electric vehicles."

The Michigan governor has consistently asked for new revenue, even running on the issue during her first campaign for office. However, attempts to implement a tax on gasoline failed.

Dig deeper:

While Hall is opposed to across-the-board increases on motorists, he said electric vehicle owners don't pay as much due to not filling up their vehicle with fuel - which is where the gas tax comes from.

"If Whitmer needs a tax increase, I'm just saying we could start looking at whether the EVs are paying their fair share," Hall said. "They are not paying the same amount as the conventional motorists and so that should be equalized."

He added "that would be more revenue. That would be a tax increase, but only for electric vehicles."

Hall further said an additional tax burden for road funding shouldn't come from "the working people."

By the numbers:

According to data, 60% of electric vehicle owners earn over $100,000 a year, while 20% of the owners earn under $50,000. 

If EV drivers are "usually better off financially" then Hall said he would support a larger tax.

However, the environmental lobby has argued EV owners already pay a higher registration fee and adding a tax on battery-powered cars would be discourage more people from buying them.