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

Blink Charging

However, EV drivers do not pay these taxes, and the growth of EVs is expected to lead to a decrease in tax revenue. For this reason, states have considered solutions such as EV registration fees, per-mile road usage fees, and kWh charging taxes. In Pennsylvania , there is an existing alternative fuel tax in effect.

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

Green Car Congress

Vehicle miles traveled: the demand for travel and mode selection that defines total vehicle use. Fuels: liquid petroleum fuels that dominate transportation today and renewable and alternative fuels that can act as substitutes. Transportation pricing: Gasoline taxes. Active transportation.