The report “Fair Share Taxes Driven Away by Electric Vehicles” examines the growing impact of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on Florida’s transportation funding model. It details how the traditional motor fuel tax—collected from gas-powered vehicles and funneled into the State Transportation Trust Fund (STTF)—is increasingly inadequate as more drivers switch to EVs, which do not contribute directly to this dedicated revenue source.
Key findings in the report highlight the explosive growth in EV and PHEV registrations—with EV numbers in Florida skyrocketing by over 2,000% in recent years—and quantify the resulting loss of tax revenue. Estimates suggest that Florida’s motor fuel tax revenue could fall short by as much as $46.4 million to $78.3 million annually as electric and hybrid vehicles replace conventional gas-powered cars.
The analysis delves into current funding mechanisms and offers a critical assessment of policy responses implemented in other states. It discusses alternative measures such as increased registration fees, the introduction of taxes at EV charging stations, and vehicle miles-based taxes (VMT). In doing so, the report identifies practical and political challenges—such as ensuring fairness for visitors and addressing technological and privacy concerns—that must be overcome for any successful policy reform.
In its recommendations, the report advocates for immediate and innovative legislative action. Proposed solutions include redistributing a portion of the sales tax collected at EV charging stations to the STTF and adopting a hybrid approach that combines higher registration fees with targeted EV taxes. These proposals aim to ensure that all drivers contribute their “fair share” toward maintaining Florida’s transportation infrastructure in the face of rapid technological change.