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Vermont Looking to Supplement Gas Tax Revenue through EVs

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August 23, 2021—Vermont policy makers are looking for ways to replace potential losses in state gas tax revenue as more drivers switch to electric vehicles.

According to WCAX 3, the state is anticipating having 50,000 EVs on the road by 2025, a significant increase from the 4,400 currently on Vermont roads. That could cause a significant dip in revenue that Vermot gets from its 30-cent-per-gallon gas tax—one projection says the loss could be as high as $20 million. 

Because of the projected loss in revenue, the state's Road Use Charge Study advisory committee is currently working on proposals to lawmakers to make up for the budget shortfall, including possible fees on public charging stations, annual fees for EV owners or milage fees through odometer checks. 

“We’re in the early stages so we have a lot to learn," said Michele Boomhower, the director of Policy, Planning & Intermodal Development for VTrans in the report. We are looking to come up with a system that provides choices and privacy and equity for folks as we move forward and we look forward to sharing that as we go along.”

Any proposals would only affect cars and small trucks for the time being.  

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