States Target Hybrids As Gas Tax Revenues Ebb Americans are using less gasoline, and that affects how much money is available for constructing and repairing highways. Some states are levying taxes and fees on hybrids and electric cars to make up for lost revenue.
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States Target Hybrids As Gas Tax Revenues Ebb

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States Target Hybrids As Gas Tax Revenues Ebb

States Target Hybrids As Gas Tax Revenues Ebb

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Hybrids and other fuel efficient cars are causing a problem for state and federal highway agencies. Money for road construction comes primarily from gas taxes. But thanks in part to cars that are more fuel frugal, Americans are buying less gasoline. Gas sales peaked in 2007 and are expected to continue to decline. So, policymakers are looking for new ways to raise money to build and repair roads.

More from NPR's Jeff Brady.

JEFF BRADY, BYLINE: One reason gas purchases are down, people like Sara Busch of Havertown, Pennsylvania, are buying hybrid and electric cars.

SARA BUSCH: Its push-button start for one thing. I enjoy the push-button start.

BRADY: Busch points to the dash of her Chevrolet Volt. There's a green ball that moves up and down and changes color, to show when she's driving more efficiently.

BUSCH: So I'm really a stickler about staying below the speed limit, not to avoid a ticket but to maintain efficiency with the...


BUSCH: ...with the electric mileage, so I can go farther on one charge.

BRADY: And Busch is doing well. She's getting 94 miles to the gallon. That means she rarely stops at a gas station. Good news for her but not for the Federal Highway Trust Fund. For each gallon of gas sold, 18.3 cents goes into the fund. Most of that is for road construction. This system worked well for about five decades until the recession a few years back, when the decline in gas consumption started.

State governments are facing a similar problem. Each state levies its own gas tax on top of the federal one, ranging from 8 cents a gallon in Alaska to about 50 cents a gallon in New York.

JAIME RALL: This year, we're seeing so many bills from states looking at how to pay for transportation infrastructure.

BRADY: Jaime Rall is with the National Conference of State Legislatures. She's counted 240 bills on this topic introduced across the country. Oregon is planning a volunteer program based on how many miles a person drives each year. The more someone drives, the more they pay.

Jim Whitty, with the Oregon Department of Transportation, says so-called infotainment systems in newer cars could be an option for tracking mileage.

JIM WHITTY: That's what we're hoping for long-term.

BRADY: These include things like navigation and Smartphone integration, along with the stereo system. If auto manufacturers include a way to track miles traveled, Whitty says that would make a tax like this a lot easier to administer.

WHITTY: This system all of the sudden becomes very simple for a lot of people. They wouldn't have to add anything to the car. All they have to say is I want to use my system and agree to the report of those miles to the tax processor.


BRADY: In Elkins Park, Pennsylvania, Len Shatz is standing next to his black Toyota Prius. He says it makes sense to consider how much someone drives when figuring out how to raise more money for roads.

LEN SHATZ: You know, let's say I drive 10 or 15 miles a day. If somebody is driving, you know, 200 miles a day or a thousand miles a day, there ought to be some way to gauge that.

BRADY: A few other states are considering something Washington State and Virginia have already done: charge an extra fee for electric and hybrid cars to make up for lost gas tax revenue. Prius owner Pamela Harvey does not like that. She thinks owners of efficient cars should be rewarded.

PAMELA HARVEY: We should get the break and then huge trucks and the Suburbans and the, you know, the big, big cars - they should get taxed.


BRADY: Here's one final thing to think about as policymakers decide how to replace declining gas taxes. For a long time, this tax was relatively invisible - it's just part of the cost of a gallon of gas. But what comes next could be much more visible - say, a tax bill at the end of the year for how many miles you traveled. That could make implementing such a tax even more difficult.

Jeff Brady, NPR News.

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