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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 fueltaxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fueltax.
These policy strategies are grouped into the following categories: Built environment and land use changes: Prioritize maintenance and avoid or cease new road building or road expansion. Transportation pricing: Gasoline taxes. Shift to VMT-based road fees as the number of ZEVs grows and fueltax revenues decline.
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 fueltax in effect.
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