- Proposed VAT Changes in the U.S.: U.S. states are increasingly implementing measures to address the fiscal impacts of rising electric vehicle (EV) adoption, considering options like higher registration fees and taxes on EV charging stations to compensate for lost gasoline tax revenue.
- VMT Tax Initiatives: Some states, including Oregon, Utah, Virginia, and Hawaii, have introduced Vehicle Miles Traveled (VMT) tax programs that charge drivers based on miles driven instead of traditional registration fees, aiming to create a fairer system that links road use to funding.
- Challenges and Future Adaptations: While higher registration fees and VMT taxes aim to bridge the funding gap for road maintenance, they may conflict with policies promoting EV adoption. As technology evolves, state tax policies are expected to adapt to better align with transportation and environmental goals.
Source Tax Foundation
