Drew Dixon
Electric Vehicles (EVs) may be all the rage for the environmentally aware on the roadways. But a new analysis by Florida TaxWatch shows EVs are taking a toll on the state’s tax revenue coffers.
The government-spending watchdog group issued the “Fair Share Taxes Driven Away By Electric Vehicles” report this month. The research project shows EVs and plug-in hybrid vehicles are beginning to drive down some revenues for gas taxes in Florida, in particular the Highway Fuel Tax.
“Electric vehicles and plug-in hybrid electric vehicles can cruise the state’s highway system without paying the Highway Fuel Tax. Although the purchase of electricity collects a sales tax, it does not directly contribute to the State Transportation Trust Fund,” said Dominic Calabro, President of Florida TaxWatch. “As electric vehicles and plug-in hybrid electric vehicles continue to grow in popularity, policymakers should consider how their market share affects the state’s ability to invest in transportation infrastructure.”
There were a combined 312,000 registered EVs and hybrids in the state in 2023, a massive increase just over 2016 and it’s projected, according to TaxWatch, those figures will jump to about 40% to 50% of all vehicles in the United States by the end of this decade.
The loss of gas tax revenue due to EVs could be substantial in the next two decades, according to the TaxWatch analysis. If there are no substantial policy changes in Florida, State Transportation Trust Fund dollars could drop by 20% by 2040. TaxWarch estimates that EV and hybrid use has already dinged fuel tax revenues to the tune of $46.4 million to $78.3 million annually.
Given the growing popularity of EVs and hybrids, TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said Florida needs to come up with a plan to compensate for lost revenues on gas taxes due to the increased use of the environmentally practical cars.
“Florida is one of the few states that has not implemented an alternative way to collect tax dollars from electric vehicle drivers,” Kottcamp said. “Given the legislature’s understandable aversion to increasing taxes, Florida TaxWatch considers the monthly redistribution from sales tax revenue to the State Transportation Trust Fund, as proposed in current legislation, to be a responsible first step.”
9 comments
Barbra Herring
April 13, 2025 at 3:25 pm
Remote work isn’t just a trend, it’s the future of work.iil Work Remotely from your own house. We just want your typing skills, You can make more than 120USD/Hr. No matter where you are. Let’s Grow together and do great things, even if we’re far apart…
Take a Look…… Go ON my ProFILE
Earl Pitts American
April 13, 2025 at 9:52 pm
Good evening, Drew Dixon,
Remember a few weeks ago when EV’s were the “Sacred Cow” of the “Dook 4 Brains Left”?
Sure you do Drew Dixon.
Well, Drew Dixon, you were given the “Impossable” task, by your “Dook 4 Brains Boss” to write up a negative artical against EV’s and that’s actually what you were able to do!!!
Your article kinda sucks, Drew, however as an employee faced with an impossable task from your “Dook 4 Brains Boss”, I, Earl Pitts American, say that you did a pretty darn good job with your impossable assignment.
I’m on your side, Drew, it must $uck to have to work for a “Dook 4 Brains Leftist Boss … but, Drew, you’re making that $hlt work, keeping your job, & feeding your family.
Proud of you, Drew,
Carry on Sir,
Earl Pitts American
D. D.
April 13, 2025 at 10:00 pm
Thanks for understanding Earl,
You are my only friend,
DD
D. D.detter
April 13, 2025 at 10:07 pm
My man, D. D.,
It must be “Pure H E Double HockeySticks working for those Fools … oh BTW, Drew thanks for saving my Kid,
Michael K
April 14, 2025 at 8:31 am
We’ve been hearing from the MAGA party that nobody wants electric vehicles – and they intend to destroy the industry and reverse progress. Now I read that EVs are both popular and good for the environment. Finally, an admission! EV ownership is growing in popularity – with very good reason – they are (mostly) great cars (I own a non-Tesla EV).
So, taxing the fuel source for internal combustion engine (ICE) cars isn’t enough to fund road construction. Gas-guzzling behemoths therefore generate more gas tax money, while producing more polluting toxins. The electricity I use to charge my car is already taxed, like all utilities.
Perhaps we should flip the focus on the vehicle itself rather than the fuel. On that front, EVs are quite efficient and economical. My car gets an E-MPG of 115 (an ICE equivalent of 115 MPG).
Consider vehicle licensing based on actual annual miles driven, as is practiced in several other countries. That seems more equitable.
steve-o
April 14, 2025 at 11:25 am
“MAGA” or common sense Americans or what is now the party of the people, do not what to destroy anything. We don’t want stuff shoved down are throats. If you want to drive an EV God bless you, same with a gas car, bike or walking. YOU CHOOSE, NOT THE GOVERNMENT! The Dems are literally destroying the cars made by the company that is the poster child of the EV market! Democrats are the party of violence!
Michael K
April 14, 2025 at 1:42 pm
Nobody is forcing you to drive an electric car. Turn off Newsmax. Nobody.
Musk is self-destructing Tesla with his anti-woke government fraud nonsense. Those cars are now ten years old – with nothing new. Newer and better models and more affordable models are now available – far more choices.
Actually, Trump is the one trying to force everybody to drive gas guzzlers as a payoff to the oil industry that gave him hundreds of millions of dollars. He wants to destroy the EV market – except, of course, for co-president Musk.
Your choice. Mine is electric. Cheaper to operate, no more costly than a regualr car, safer, far more energy efficient, no oil changes, ever, and no pollution.
2eachisown
April 14, 2025 at 9:56 am
Good luck owning and driving an EV with an evacuation order during a FL hurricane when their is no power in FL, in fact the battery will blow up and catch the car on fire.
Michael K
April 14, 2025 at 10:04 am
And if the power is out how do you pump gas? If I lose power I can run my fridge and a few other things for 5 days from my car.
I think you’re being misinformed with scare tactics. Early evacuation if needed is the key.