South Florida cities are concerned about road funding as electric car owners skip gas taxes, prompting calls for legislative changes.
Westlake: As electric cars become more common, cities in South Florida are feeling the pinch. They’re worried about losing out on gas tax revenue.
Mayor JohnPaul O’Connor is asking state lawmakers to come up with a new way to fund transportation since electric vehicles don’t pay gas taxes. This issue is catching the eye of politicians in Tallahassee.
In Florida, drivers pay 38.6 cents per gallon in gas tax, which helps pay for road maintenance. But as cars get more fuel-efficient and electric vehicles rise in popularity, that revenue is dropping.
Adam Hoffer from the Tax Foundation pointed out that the gas tax has been a solid way to fund roads, but it’s struggling now. He noted that electric vehicles don’t contribute at all.
To tackle this, many states have started charging higher registration fees for electric cars, but Florida hasn’t followed suit yet. Some states charge fees ranging from $50 to $200 for electric vehicle registrations.
Gas tax revenue is crucial for South Florida. Broward County expects to bring in about $81.7 million this year, but that’s down from last year. The drop is due to more people using public transport, working from home, and driving electric cars.
Palm Beach County is also feeling the impact, expecting $54 million in gas tax revenue this year. Mayor O’Connor believes new laws are needed to address these losses.
He emphasized that as electric vehicle sales rise, they should contribute to road maintenance costs. State Senator Gayle Harrell pointed out that tourists driving electric cars also don’t pay for the roads they use.
Some state leaders are eager to act. State Rep. Kelly Skidmore suggested implementing a charging station fee and a registration fee for electric vehicle owners in Florida.
O’Connor agreed, proposing a small tax on electricity used at charging stations to help with funding. However, a previous bill to impose extra fees on electric cars failed last year.
Concerns about fairness have been raised, with some arguing that electric vehicle owners could be “double taxed” if new fees are introduced.
For more information, you can reach out to Lisa J. Huriash at lhuriash@sunsentinel.com or follow her on X, formerly Twitter, @LisaHuriash.
