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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

Taxing charging revenue The federal government and many states currently tax sales of gasoline and diesel to fund “related government services like road construction, maintenance, repair, and public transportation.” 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

This is because many of the external costs1 of transportation—such as congestion, pollution, and GHG emissions—are not paid for by the businesses or individuals that make key decisions, and because individuals and even many businesses do not make purchase decisions based on the total cost of ownership (TCO). Active transportation.