FLAGSTAFF, Ariz. (AP) – Flagstaff’s Stewart Weinstein ordered an all-electric vehicle to be eco-friendly, but now the unexpected financial rewards of buying it have amassed before he even drove his new car out of the parking lot.
One benefit is that Weinstein can apply for the city’s sustainable vehicle discount program, which offers sales tax discounts on fuel efficient vehicles purchased from local dealers.
“I believe the technology and time is right for these electric vehicles and I love to support my local community,” said Weinstein. “And it feels like I’m always finding new, additional bonuses for this car.”
The city’s discount program, which went into effect in July, not only promotes sustainable practices in the community, but also supports the city’s automotive industry, said Jack Fitchett, Flagstaff’s business attraction manager.
The city currently offers a three-tier discount system based on the type of vehicle purchased, which provides the greatest incentives to vehicles with high fuel consumption. All-electric vehicles qualify for the highest level of the program with a 2% discount. This means that both new and used fully electric vehicles purchased locally can deduct 2.0% of the vehicle tax rate of 2.281%, increasing the effective post-discount tax rate to 0.281%.
But few vehicle owners have actually taken advantage of the all-electric vehicle discount, Fitchett said.
Hybrid vehicles, which received a 1.6% discount, made up almost all of the city’s SATR applications. Fitchett didn’t necessarily attribute the city’s low inventory of qualified vehicles on the other levels to a lack of public interest.
As the discount program has its roots in the city and more electric vehicles hit the market, Fitchett will help dealerships in their efforts to bring models of electric vehicles to consumers. This is one of the few strategies the city has implemented to encourage the use of electric vehicles.
In July, Flagstaff, in partnership with the Arizona Public Service, installed four electric vehicle charging stations in Flagstaff City Hall. Growing incentives coupled with the city’s new EV infrastructure could explain the recent interest of local dealers in EVs.
Joe Porto, general manager of the Findlay Volkswagen Flagstaff dealership, said he has a dozen pre-orders for Volkswagen’s first all-electric SUV, which will hit the market later this year, rivaling the interest of Volkswagen dealerships in cities like Phoenix.
Weinstein is one of those customers and said he was happy with the move to an electric vehicle due to the availability of chargers in town and the greater range of new models. He also looks forward to the many incentives to be an electric vehicle owner.
“It checks all the boxes,” said Weinstein. “I think the more incentive there is to make this change, the more it will make people buy.”
That local interest hasn’t always resulted in vehicles being bought in Flagstaff, however.
According to Fitchett, some local car dealerships in the city have said they are struggling with locals buying vehicles from dealerships in other cities, whether because of lower prices, tax incentives, or a wider choice of fuel-efficient vehicles. The Sustainable Automotive Tax Rebate program is designed to provide some level of support to these dealers.
The city has received positive feedback from car dealers since the launch of the new discount program. Some added that they could improve the fuel-efficient vehicle inventory, Fitchett said. Much remains to be done, however, such as: For example, allowing merchants to simplify the rebate process directly, rather than having buyers submit applications individually to the city.
The program managers will ask the city council to make that change next month, Fitchett said, suggesting better access to the fuel efficient vehicles program.
The lowest fuel economy level offers a 0.7% tax refund for vehicles with urban fuel consumption of 35 MPG or more. City officials will attempt to lower the MPG metric in hopes of increasing the number of qualified vehicle purchases in the area.
In a city that deals with seasonal weather conditions, Fitchett says it is important to ensure that fuel-efficient vehicle owners also have access to sustainable automotive incentives.
“The program should also appeal to people who may not be ready to buy an all-electric or hybrid vehicle,” said Fitchett. “Flagstaff is a four-season community, and some people will want that four-wheel drive. But we still want to promote this sustainable way of thinking. “
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