Report describes framework for EV taxation

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The American Transportation Research Institute (ATRI), the trucking industry’s not-for-profit research organization, recently released a report providing a framework for electric vehicle (EV) taxation to support transportation infrastructure.

EVs do not contribute substantively to state and federal highway trust funds, because there are numerous programs that subsidize the use of electric vehicles. This exacerbates the infrastructure investment deficit, ATRI said. If this continues, lost revenue will total more than $4 billion over the next 10 years, according to the institute’s analysis.

U.S. electric utilities are well equipped to begin collection of a per-kWh charge of 2.1 cents for transportation-related electricity consumption in the coming years, the report says, that could be used as a highway trust fund revenue stream.

The report suggests a phased approach. Utilities would start with electricity that is dispersed through public charging stations and residential smart chargers.

“This analysis demonstrates how an electricity tax can easily emulate all the key components of a fuel tax,” Paul Enos, Nevada Trucking Association CEO, said. “Moving forward with an efficient utility-based approach will help EV owners support the infrastructure that they use every day.”

ATRI is engaged in critical research relating to freight transportation’s essential role in maintaining a safe, secure and efficient transportation system