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My state jacked up registration costs for EVs and fuel efficient ICE vehicles and is piloting a pay by mileage program. I admit they have to do something, but currently they're just incentivizing people to buy gas guzzlers because they pay the least amount out of anyone tax wise.
The fairest thing would be to tax tires, since they're mileage rated and size would be indicative of infrastructure wear. Except that it would incentivize people to drive on unsafe tires.
I mean, why not just cut to the chase and tax mileage driven? That's what gas taxes indirectly do already. The only issue there is the tax goes wholly to the state where the vehicle is registered, rather than where it is driven.
The problem I have with this is that it doesn't account for actual road damage (which is a factor of weight and not distance) and incentivises states to reduce public transit and low cost housing options. The further your citizens have to move from their jobs means more cash in the coffers.
Is it that big an incentive though, or just reducing the disincentive? Even if you get a $500 discount on your taxes, I'm guessing the gas guzzler eats up more than $500 worth of gas extra. That's like, 2-3 gallons per week over the course of a year.
Probably not that big of an incentive for the driver of a gas guzzler depending on how much they drive, but the state shouldn't penalize people for driving more fuel efficient ICE vehicles especially one like mine that loves to give lip service about climate change while not really doing anything concrete to reduce it. I could see charging more for EVs as they pay zero gas tax, but ICE should either all be the same or tiered in the opposite direction to further disincentivize people from commuting in a '92 Suburban versus something like a Prius.