Iowa is about to adopt an additional “electric fuel excise tax” on July 1, meaning EVs in the state will now pay “fuel” taxes two different ways, whereas gas cars only pay one – and both of these taxes are higher than what a gas car pays.
A large number of states have implemented misguided and excessive “EV fees” to “make up” for shortfalls in road budgets, with the theory that EVs are somehow skipping out on their fair share. Currently, in Iowa, gas taxes only pay for less than 40% of the state’s road budget, and the vast majority of road damage is done by trucks, not cars.
We’ve covered the reasons these fees are misguided many times before, not least of which because they are a cynical lobbying ploy by the oil industry to disadvantage an objectively better transportation option. But Iowa’s new effort takes the stupidity to the next level.
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