WASHINGTON, D.C. – As the adoption of electric vehicles (EVs) throughout the United States has resulted in a steadily decreasing amount of gasoline tax revenue, at least eight states so far have implemented new rules that impose significant annual registration fees – typically at least $200 or more, twice as much as is charged for gas-powered cars – upon EVs as a means of making up for the lost money.
This development comes as financial incentives instituted by the Biden Administration has resulted in a significant increase in the number of electric cars that are being purchased. As a result of the loss of gas tax revenue, a growing number of states are relying on new fees and taxes placed upon EVs to make up the difference; Texas is the state that has most recently done this, having put such a policy into effect in September.
In addition, some states are also imposing taxes at EV charging stations as well.
Florida state Senator Ed Hooper (R) recently announced that he will be introducing a bill in 2024 that, if passed, will add his state to the growing number across the country that will require a $200 yearly registration fee to be paid by EV owners.
It’s what is fair,” Hooper said. “By 2035, between 20 to 25 percent of vehicles in Florida are going to be electric. We use gas taxes to build and maintain our roads, and those that are buying EVs are getting a free ride.”
While a growing number of states are adopting the stance that EV owners need to contribute more than their gas-powered vehicle-owning members in order to make up for tax revenue shortfalls, some opponents of this plan opine that fees and taxes could cause people to think twice about buying EVs and, as a result, slow down technological advances in the field.
These critics also claim that some slowdown in gas tax revenue can be attributed to more efficiently designed internal combustion engines that result in more miles to the gallon than older vehicles. In addition, increased reliance on telecommuting and virtual work born out of the pandemic has resulted in a decrease in commuting, which could also be eating into tax revenue.
It remains to be seen where this issue will lead, but as reliance on EVs continues to grow in this country, the subsequent loss in tax dollars will indeed need to be addressed at some point.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.