Washington, DC Encourages Hybrids and Discourages SUVs
Status: Adopted in December 2004
In December 2004 the Washington, DC adopted the Department of Motor Vehicle’s Reform Amendment Act, which is intended to encourage the use of hybrid cars and discourage the use of SUVs. Under the new Act, owners of hybrid and other alternative fuel vehicles are no longer required to pay an excise tax and their registration fee is cut in half. Heavy passenger vehicles, on the other hand, must pay an increased excise tax of 8% (up from 7%) and an increased registration fee. Thus, an owner whose SUV had a sticker prices of $60,000 would pay an excise tax of $4.800 (an increase of $600). The owner of a hybrid vehicle would pay nothing. Registration fees for SUVs increased from $115 to $155 and registration fees for hybrids decreased from $72 to $36. A representative from DC’s Department of Motor Vehicles explained that they hope to discourage SUV use because SUVs are worse for the environment and the City’s roads.