Mississippi Senate Bill SB2890

Mississippi 2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 3/27/24

Caption

Hybrid vehicle tax; add ability to be charged from external source to definition of "hybrid vehicle" for purposes of.

Impact

The bill establishes an annual tax of $75 on each hybrid vehicle, applicable in addition to other existing taxes. The tax is to be collected by the county tax collector at the same time as the highway privilege tax. Notably, hybrid vehicles that qualify for exemptions from ad valorem taxation will not be subject to this new tax. Also, starting July 1, 2021, the tax amount will be subject to annual adjustment based on the U.S. inflation rate as determined by prescribed standards.

Summary

Senate Bill 2890 seeks to amend Section 27-19-23 of the Mississippi Code of 1972 to redefine the term 'hybrid vehicle.' The new definition will require that a hybrid vehicle is capable of being charged by plugging into an external source, alongside utilizing multiple forms of onboard energy for propulsion. This amendment is intended to clarify which vehicles qualify for the hybrid vehicle tax imposed by the state.

Contention

One point of contention surrounding SB2890 could involve the implications of further taxing hybrid vehicles at a time when environmental initiatives are advocating for the adoption of such vehicles to promote sustainability. Critics may argue that this tax could discourage the use of hybrid vehicles by adding a financial burden on consumers, thus countering efforts to reduce emissions and enhance environmental quality. On the other hand, proponents may argue that the tax is a necessary step for funding transportation infrastructure projects as tax proceeds will be allocated for road and bridge maintenance exclusively.