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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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Mn/DOT assessing potential for mileage-based user fee to replace fuel tax; Battelle conducting technology assessment

Green Car Congress

Minnesota’s highway revenues are derived from three sources: the gas tax, vehicle registration fee or tabs and the motor vehicle sales tax. These funding sources support construction and maintenance of the highway system. People interviewed included knowledgeable transportation experts as well as the general public.

Fuel Tax 262
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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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Next 10 report finds California will meet or exceed original target of 1.5M ZEVs by 2025

Green Car Congress

ZEVs require significantly less time and money spent on maintenance because they have only about 20 moving parts – about 1,800 fewer moving parts than traditional ICE vehicles. The growth of ZEVs represents a potential drain on motor vehicle fuel taxes, which could affect state transportation revenue.

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Analysis concludes that current transportation policy in most US states will likely worsen GHG emission trends in US

Green Car Congress

Suggested strategies to change the trajectory of climate change while improving travel choices for Americans include: Balancing state transportation investments by using state and federal resources to support robust public transportation service, prioritize highway repair and safety over new capacity, support non-motorized.

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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 Currently, the US Highway Trust Fund supports the construction, repair and maintenance of highways. The Fund is replenished by revenue collected from motor fuel taxes. billion; Provides $337.4

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We Need More Than Just Electric Vehicles

Cars That Think

In the meantime, EV buyers’ sticker shock could be alleviated by the knowledge that fuel and maintenance costs are far lower for EVs and that total ownership costs are about the same. estimates that by 2030 the deployment of EVs could cut global receipts from fossil-fuel taxes by around US $55 billion. passenger vehicles.