

Starting next July, Iowa will levy a 2.6 cents-per-kilowatt hour tax on electricity delivered to an electric vehicle at a public station. Twenty-two states already have indexed or variable-rate gas taxes.Īt least four states - Iowa, Kentucky, Oklahoma and Pennsylvania - are trying to recoup lost fuel tax revenue from a different angle: taxing the electricity used at public charging stations, according to the National Conference of State Legislatures. “It’s hard to see why this should be a top priority for states given the seriousness of the climate crisis.”Īn easier fix, Davis said, would be to index the gas tax rate to keep up with inflation.

It is also a way for the state to collect taxes from motorists who are buying and driving electric vehicles.
#Vmt tax california drivers#
“For political reasons it’s often been touted as a way to fund gas tax repeal, and that’s a tough thing to pull off without benefiting gas guzzlers relative to more efficient vehicles,” he wrote in an email. Oregon and Utah are currently running pilot programs that tax certain drivers vehicle miles traveled (VMT) instead of. The California Vehicle Miles Traveled (VMT) Tax is billed as a way for the state to move from its longstanding pump tax to a system where drivers pay based on their mileage. Biden also has signed an executive order calling for half of the vehicles sold in the United States to be electric by 2030, and the infrastructure law includes money to build more electric vehicle charging stations nationwide.ĭespite the projections and increased interest in electric vehicles, Carl Davis, research director at the liberal Institute on Taxation and Economic Policy, said replacing or supplementing the fuel taxes with a mileage tax is “still a ways off.”
