Drivers across America are switching to EVs, hybrids and more fuel efficient gas-powered vehicles, and that’s a major problem for states. Because while the shift might be saving drivers money in running costs, it’s costing states a fortune in lost fuel tax revenue, and now they’re considering charging drivers by the mile to plug the gap.
Gas taxes have been a major source of revenue to fund the upkeep and building of U.S. roads for decades, but states are facing a shortfall in their finances that’s only going to get worse if nothing is done. EV sales in the U.S. have grown from 0.1 percent in 2011 to 4.6 percent in 2021, data from the U.S. Bureau of Labor Statistics shows, which might not seem like a huge change, but S&P Global Mobility expects EVs to make up 40 percent of sales by 2030.
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