The future of transportation is upon us. From more cars being produced that aim to reduce the carbon footprint to self-driving cars and even self-driving rides, we’re seeing emerging technologies and experiences entering and thriving in today’s transportation market.
But despite these new technologies that we’re seeing more of, we’re not seeing some of the policies being adopted that we need to adapt to them, specifically in regard to taxes.
Take electric vehicles. The sale of electric vehicles has grown year after year. We can expect those sales to increase exponentially over the next decade, following a new initiative announced by President Joe Biden to make 50% of all new vehicles sold zero-emissions vehicles by 2030.
Florida is already No. 2 in the nation in electric vehicle sales, with electric vehicle sales currently accounting for approximately 3.5% of vehicles sold in the state. Previous estimates predicted that number could be 10% or higher by 2030. However, with a push by the federal government to dramatically increase electric vehicle sales, that number could be much higher than initially expected.
While an increase of electric vehicles on the road can benefit the state in some respects and is great for our environment, it also presents a unique and growing problem for Florida.
Florida relies on a statewide gas tax to fund its transportation system. From roads and highways and bridges, it is all funded by people — Floridians and tourists — who fill up their gas tank at one of the gas stations in our state, with a portion of that sale being collected by the state and used for our state’s infrastructure.
However, under this system, since electric vehicles do not need gas, their drivers do not pay this tax, even though electric vehicles are benefiting from the use of the same roads and transportation infrastructure as traditional vehicles.
As more cars on the road are electric and fewer people need gas, the current system becomes unsustainable, inequitable and transportation infrastructure investments in Florida will ultimately suffer.
Efforts have been made by lawmakers in Tallahassee to establish a reasonable, flat fee for electric and hybrid vehicles, which would be used, in addition to the state gas tax, to fund the State Transportation Trust Fund and, ultimately, our state’s infrastructure. State Senator Jeff Brandes has been a leader on this issue.
A flat fee for electric and hybrid vehicles would not only help to maintain the roads that all cars — traditional, hybrid and electric — utilize across the state, but could also help fund the infrastructure needed to support a growing electric vehicle fleet, including increased charging stations and locations and other needed amenities to support the future of vehicles.
Florida is one of only a few states in the southeast that does not charge a fee on electric vehicles. Across the United States, 28 states have already adopted electric vehicle fees of some sort to ensure electric vehicle drivers pay their fair share for driving on public roads.
While a flat fee for electric and hybrid vehicles did not pass during the 2021 Legislative Session, the new goal set by the Biden Administration to greatly increase the number of electric vehicles on our roads now makes this an issue that will need to be addressed sooner rather than later. I hope the Florida Legislature will continue to look toward the future and seriously consider the policies that are needed to accommodate and support what our state will be like in 10 years and beyond.
Establishing an electric vehicle fee will create an equitable system that ensures all drivers on the road in Florida, regardless of the type of vehicle they choose to drive, are paying to use and maintain our state roads and transportation infrastructure that we all share.
Ananth Prasad is the president of the Florida Transportation Builders’ Association and former secretary of the Florida Department of Transportation.