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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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New Zealand simplifies Road User Charges system, extends exemption for light electric motor vehicles from 2013 to 2020

Green Car Congress

(Since some 36% of diesel is used off-road, such as on farms, by manufacturing, industrial and commercial ventures, and boats, a fuel tax for road use would impose an unfair burden onto these sectors, the government says.). The exemption applies to any motor vehicle the power of which is wholly (i.e., tonnes or less.

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Belfer Center Study Concludes Reducing Car and Truck GHG Emissions Will Require Substantially Higher Fuel Prices; Income Tax Credits for Advanced Alt Fuel Vehicles Are Essentially Ineffective at Reducing Sector Emissions

Green Car Congress

Direct transportation (fuel) taxes generate the greatest reductions in CO 2 emission from transportation, achieving CO 2 emissions at 86% of 2005 levels by about 2025. While CO 2 prices are equivalent to fuel taxes, CO 2 prices at their projected levels are far too small to create a significant incentive to drive less.

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Proposed US Transportation Reauthorization Plan Links Greenhouse Gas Reductions to Transportation Planning

Green Car Congress

The Surface Transportation Authorization Act: Doubles the investment in highway and motor carrier safety to $12.6 The Fund is replenished by revenue collected from motor fuel taxes. Major elements of the Surface Transportation Authorization Act include: $450 billion in funding over six years. billion; Provides $337.4

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GM weighs in against Washington’s proposed EV surtax

Green Car Congress

General Motors earlier this week sent a letter to Washington Gov. Chris Gregorie asking that a proposed $100 EV surtax be removed from the state’s transportation bill (Senate Bill 6455, ESSB 6455) on the grounds that it will create a disincentive toward the purchase of an EV. do no favor certain technologies over others).

GM 218
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We Need More Than Just Electric Vehicles

Cars That Think

The total cost of purchasing and driving one—the cost of ownership—has fallen nearly to parity with a typical gasoline-fueled car. In 2019, 63 percent of global electricity was produced from fossil-fuel sources, the exact nature of which varies substantially among regions. EVs have finally come of age.