As electric vehicles shrink gas tax revenue, more states may tax mileage
OCTOBER 11, 2022
The increasing popularity of hybrid and electric vehicles is shrinking revenue from gas taxes, prompting more states to consider charging fees based on miles driven to help pay for roads and bridges.
This year at least eight states — Hawaii, Massachusetts, Minnesota, Tennessee, Utah, Vermont, Virginia and Washington — considered bills that would modify existing programs or set up new pilot programs to tax drivers of electric vehicles (typically all-electric or plug-in hybrid vehicles) based on the miles they drive, according to the National Conference of State Legislatures, which tracks the issue.
States’ revenue from fuel taxes has been dropping in recent years because drivers of vehicles with better fuel efficiency pay less in per-gallon gas and diesel taxes. The growth in sales of electric and hybrid vehicles has accelerated the trend.