Wednesday, July 15, 2020
July 15, 2020

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Letter: Licensing is but a small cost

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To Ken Huckaby, who complained about his vehicle licensing fees (“Car tabs are too costly,” Our Readers’ Views, Jan. 12): Your van is worth (Kelley Blue Book) about $27,000. A conservative estimate of your annual cost to own and operate this vehicle is $6,181. This includes the capital cost of $4,428 ($27,000 over seven years at 4 percent) plus $600 for insurance plus $200 for service expenses plus $600 for fuel and $353 for licensing, using your numbers for fuel and licensing. Your total licensing fee makes up less than 6 percent of your annual cost to own and drive this vehicle.

Assuming 75 percent of your fuel expenses are for gasoline, at $3 per gallon you pay $74 in state gasoline taxes a year. This added to your licensing fees equals $427 a year in local and state taxes that you pay toward maintenance and operation of the road system on which you drive and the charging station infrastructure available to you. This is 7 percent of your annual cost to own and drive this vehicle. Is there some other way you would prefer to pay for the road system that you use?

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