As electric vehicles reduce gas tax revenues, many states are charging EV owners additional fees to help fund road maintenance.
Adam Aton reports for POLITICO.
In short:
- Pennsylvania will impose a $250 annual fee on electric vehicles, one of the highest in the U.S., as states seek to offset declining gas tax revenues.
- Thirty-nine states have implemented similar fees, with some also cutting other EV incentives, complicating the push toward cleaner transportation.
- Critics argue these fees could hinder EV adoption without significantly addressing transportation funding gaps.
Key quote:
"We’re not at a point where electric cars are in any way, shape or form quote-unquote ‘stealing’ from the gas tax."
— Frank Hornstein, Democratic chair of the Minnesota House Transportation Committee.
Why this matters:
States face a dilemma: they need new revenue sources as gas tax income drops, but increasing costs for EVs may slow their adoption, jeopardizing emissions reduction goals.
