As More Electric Vehicles Hit Roads, States Look to Replace the Gas Tax

  • Date: 02/01/2023

Taxing drivers for the miles they drive and imposing fuel taxes on electricity sold at commercial chargers are just some of the options states are considering.

State lawmakers have long known the day was coming when they would have to figure out a way to tax electric vehicle users to maintain their roads. Still reliant on the gas tax, states are seeing those revenues shrink as more and more people get behind the wheel of an electric vehicle.

Now, with the auto industry’s decision to accelerate its production of electric cars in the coming years, that day may be close at hand. Long-studied ideas such as raising registration fees for EVs, taxing drivers for the miles they drive—instead of the gas they buy—and imposing fuel taxes on electricity sold at commercial chargers are getting a renewed look.

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