States Consider Taxes and Fees on Electric and Hybrid Vehicles

With gas tax revenues being affected by more consumers buying electric and hybrid vehicles, states are considering new taxes and fees on these vehicles to generate revenue for roadways. As reported in Better Roads:

Electric and hybrid car sales have continuously risen in the last decade, while state and local gas tax revenues have fallen. In fact, inflation-adjusted data from the Institute on Taxation and Economic Policy have shown that those revenues dropped 7 percent to $37.9 billion in 2010.

To compensate, six states–Washington State, Virginia, New Jersey, Arizona, Indiana and North Carolina–have proposed legislation to generate fuel-efficient vehicle-specific taxes that would help fund roadwork in those states.

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