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Rise in Electric Vehicle May Be Denting Florida’s Gas Tax Revenue

August 10, 2023 | FlaglerLive | 3 Comments

The free electric vehicle charging station at Palm Coast City Hall is seldom without a user. (© FlaglerLive)
The free electric vehicle charging station at Palm Coast City Hall is seldom without a user. (© FlaglerLive)

As more motorists drive electric vehicles, the change could put a dent in gasoline taxes, which play a key role in funding transportation projects in Florida, according to an analysis by state economists.

The analysis, compiled by the state Revenue Estimating Conference, said the “market share of electric vehicles in Florida is expected to increase significantly over the course of the next 10 years” and pointed to factors such as more-affordable purchase prices, increased access to charging stations and extended battery life.




“As owners increasingly turn to electric vehicles, gas tax collections will face continuing downward pressure and, in so doing, reduce the state’s primary funding stream for transportation,” an accompanying summary said. Florida collects about 25 cents a gallon in gas taxes. Economists look at what is known as “fleet miles per gallon” in forecasting fuel and tax numbers.

The analysis noted that electric vehicles remain a “relatively small” portion of overall fleets of vehicles in Florida and the U.S. “While electric vehicle impact on new vehicle fuel economy is imminent, there will be a delay of at least five to seven years before this impact can be observed in the overall fleet as the universe of vehicles on the road converts from gas-powered to electric,” the analysis said.

“This process will take many years to complete as gas powered vehicles currently on the road have a reasonable expectation to continue use for at least 10 to 15 years. Also note that there are other factors which influence fuel economy, such as improved fuel efficiency of gas-powered vehicles and the mix between light and heavy vehicles.”

–News Service of Florida

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Reader Interactions

Comments

  1. pete says

    August 11, 2023 at 7:49 am

    Need to be charging for that, why is it free?

  2. tulip says

    August 11, 2023 at 8:35 am

    So, do I understand this correctly–people can get free electricity to charge their cars at city hall, and the city of Palm Coast pays the electric bill, which would be astronomical, and, in turn, somehow wind up on our list of “fees” everyone will have to pay whether they own an EV or not. If a person goes to a charging station elsewhere, how much does it cost the driver? Why not charge the owner of the EV a fee for using the city charging stations?

  3. Pogo says

    August 11, 2023 at 2:16 pm

    @Psst — the smart money is going with diesel-powered Betamax

    Ha ha, this means nothing
    https://www.google.com/search?q=Ev+news+usa+2023#ip=1

    Really, nothing at all
    https://www.google.com/search?q=ev+news+usa#ip=1

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