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How will governments replace fuel tax loss with electric cars?
Pretty soon there will only be EVs and hybrid vehicles. While getting an EV sounds awesome (especially with a hefty deferral tax credit) I’m wondering what other fees to be on the lookout for. How do you think states will be able to fund transportation projects and repairs? And how will governments replace fuel tax lost with electric cars?
Elaine Duvet · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s very true. Governments have the potential to lose billions without new taxation in place. However, this does provide an opportunity to allow drivers to pay by use, and make car tax more equitable.
New York
, for example, has adopted weight-based calculations for road tax.Here’s how the government can replace the fuel tax lost with electric cars:
- Tolls on bridges and roads can increase, no matter what kind of car you have.
- Lost revenue can be made up by doubling registration fees for electric vehicles.
- Though most EV drivers charge their vehicles at home, extra tax can be added to public charging points throughout the country.
- States can demand higher fees for EV owners, and in some cases surpass the fees for gas-powered cars. Takes states like Texas, Minnesota, Wyoming, and Arizona that have shockingly high increases.
Now that you have a better idea of how your future EV may be taxed, you can set aside some extra funds so you’re not caught in a pinch. A great way to keep money in the bank is to make sure you’re not overpaying for your car insurance every month.
Curious if you could be paying less? Download the
Jerry
app. The savings keep coming even after Jerry finds you great insurance at the lowest price. Before every policy renewal period, you’ll be presented with new competitive quotes, which means you’ll always have the best coverage at the best price. The average Jerry user saves over $800 a year.View full answer
- Gregory R.
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