It’s a given that governments are the most impacted by the shift to electric vehicles and falling fuel tax revenues to fund road improvements.That’s because cars have become so fuel efficient — if they use fuel at all — that drivers are catching a huge break on the the amount of gas taxes paid at the pump.The situation has become so severe in jurisdictions like California that the state government is proposing to replace its gasoline surcharge with what it’s calling a ‘Road Charge’ where certain drivers would be exempt from fuel taxes and instead would pay a mileage based fee..The state government is now asking residents to sign up for a pilot program to assess the viability of such an idea. Although it hasn’t as yet set a rate, it’s looking at US$0.02-$0.04 per mile, or the Canadian equivalent of CAD$0.017-$0.034 per kilometre.The program will start in July and initially run for about six months. To sweeten the pot, the state is offering up to $400 in rebates, a gas tax credit and a refund on registration fees.On its website, the government calls it a “fair and sustainable” way to fund road maintenance, similar to utility charges.“Instead of paying the state’s gas tax, which disproportionately impacts those who cannot afford more fuel-efficient vehicles, everyone would pay a per-mile fee for how much they use the road, regardless of what kind of car they drive,” it said..Drivers of internal combustion cars pay on average about USD$300 per year. In addition, EV owners pay a registration fee of about $120, transportation improvement fees and weight fees for commercial vehicles.That’s not withstanding local sales taxes and bridge or highway tolls that vary by region.The project stems from a 2014 state law that required California to “begin to explore alternative revenue sources that may be implemented in lieu of the antiquated gas tax structure now in place.”The idea of user fees for road access is catching on in Canada as well. It its most recent budget the Alberta government introduced a $200 surcharge for EVs while Saskatchewan charges $150.In the US, 24 states have similar fees ranging from USD$50 in Hawaii to $200 in Texas. In addition, six states including Georgia, Iowa and Kentucky, collect a special tax at EV charging stations.
It’s a given that governments are the most impacted by the shift to electric vehicles and falling fuel tax revenues to fund road improvements.That’s because cars have become so fuel efficient — if they use fuel at all — that drivers are catching a huge break on the the amount of gas taxes paid at the pump.The situation has become so severe in jurisdictions like California that the state government is proposing to replace its gasoline surcharge with what it’s calling a ‘Road Charge’ where certain drivers would be exempt from fuel taxes and instead would pay a mileage based fee..The state government is now asking residents to sign up for a pilot program to assess the viability of such an idea. Although it hasn’t as yet set a rate, it’s looking at US$0.02-$0.04 per mile, or the Canadian equivalent of CAD$0.017-$0.034 per kilometre.The program will start in July and initially run for about six months. To sweeten the pot, the state is offering up to $400 in rebates, a gas tax credit and a refund on registration fees.On its website, the government calls it a “fair and sustainable” way to fund road maintenance, similar to utility charges.“Instead of paying the state’s gas tax, which disproportionately impacts those who cannot afford more fuel-efficient vehicles, everyone would pay a per-mile fee for how much they use the road, regardless of what kind of car they drive,” it said..Drivers of internal combustion cars pay on average about USD$300 per year. In addition, EV owners pay a registration fee of about $120, transportation improvement fees and weight fees for commercial vehicles.That’s not withstanding local sales taxes and bridge or highway tolls that vary by region.The project stems from a 2014 state law that required California to “begin to explore alternative revenue sources that may be implemented in lieu of the antiquated gas tax structure now in place.”The idea of user fees for road access is catching on in Canada as well. It its most recent budget the Alberta government introduced a $200 surcharge for EVs while Saskatchewan charges $150.In the US, 24 states have similar fees ranging from USD$50 in Hawaii to $200 in Texas. In addition, six states including Georgia, Iowa and Kentucky, collect a special tax at EV charging stations.
