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

Green Car Congress

Transportation pricing: Gasoline taxes. Shift to VMT-based road fees as the number of ZEVs grows and fuel tax revenues decline. This could come from carbon capture and sequestration (CCS) projects, possibly using direct air capture to pull carbon dioxide out of the air and store it underground.

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

Blink Charging

Just as conventional internal combustion engine (ICE) cars measure fuel by the gallon, EV owners measure their energy consumption in kWh. Although much cheaper than putting gasoline into a ICE car, charging an EV is not necessarily free. In Pennsylvania , there is an existing alternative fuel tax in effect.

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