Fuel-efficient and electric vehicles mean states are collecting less gas tax revenue, and that’s a problem for road budgets. Potential solutions: taxing drivers for the miles they travel, new taxes on EVs and electricity at public charging station.
and, more recently, adding per-kilowatt-hour taxes to electricity accessed at public charging stations.
“The impetus at this point is less about collecting revenue than about establishing these systems, working out the kinks, getting the public comfortable with it, expanding awareness around it,” he said. Hendren’s organization, a 17-state partnership that researches transportation safety and technology innovations, participated in one of the earliest pilot projects and eight others since. The biggest hurdle, she said, is to inform the public about the diminishing returns from the gas tax that has long paid for roads.
“There’s no program design that I have seen that I think can be implemented at scale in a way that is publicly acceptable,” he said. “That doesn’t mean that a program can’t be designed to do so, but I feel like if you can’t even conceive of the program architecture that seems like something that would work, you probably shouldn’t put too much faith in it.”
States also must grapple with the social and environmental implications of their plans for replacing the gas tax, said Asha Weinstein Agrawal, director of the National Transportation Finance Center at San Jose State University’s Mineta Transportation Institute.
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