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Is A Tax On Electricity (kWh) Consumed The Best Way to Supplement the Fuel Tax for Electric Vehicles?

EV Adoption

As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fuel taxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fuel tax.

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UC report to CalEPA outlines policy options to decarbonize California transportation by 2045

Green Car Congress

Fuels: liquid petroleum fuels that dominate transportation today and renewable and alternative fuels that can act as substitutes. These policy strategies are grouped into the following categories: Built environment and land use changes: Prioritize maintenance and avoid or cease new road building or road expansion.

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kWh Billing and New EV Charging Tax Policies: What You Need to Know

Blink Charging

Just as conventional internal combustion engine (ICE) cars measure fuel by the gallon, EV owners measure their energy consumption in kWh. This metric quantifies the energy transferred to an EV’s battery during charging, similar to filling up an ICE vehicle. In Iowa , the kWh tax has already been in effect since July 1, 2023.

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