Electric cars: California launches tax per kilometer
California is currently experimenting with a new form of tax for electric cars. Faced with declining tax revenues from fuel taxes, the State decided to implement a tax based on the kilometers traveled by electric cars.
Currently in the pilot phase, this measure concerns volunteers who will be exempt from the fuel tax and will receive $400 for their participation. They must install a tracker in their vehicle or manually record their mileage, which incurs a tax of 3 cents per mile driven. This project aims to fill the deficit of approximately $4.4 billion over ten years.
Other countries may follow the trend
California is not alone in this approach. Many countries are considering similar measures to address the reduction in tax revenues due to the transfer of electric vehicles. Australia, for example, proposed a similar tax but had to withdraw due to legal reasons. Maybe a first try.
This international trend shows a growing awareness of governments of the need to adapt their tax systems to the evolution of the vehicle fleet. As sales of electric cars continue to rise, revenues from traditional fuels are declining, putting the financing of road infrastructure at risk.
Will France soon be affected by this tax?
In France, no specific measure of this kind has been put in place, but the reflection continues. Currently, the government continues incentives for the purchase of electric vehicles, such as the ecological bonus that is extended until 2027. However, there are signs of possible tax reform. Paris city hall has already introduced a higher price for electric SUVs, and a weight penalty for the heaviest electric cars is being considered. These measures show that the authorities are beginning to think about solutions to compensate for the loss of tax revenue linked to the reduction of fossil fuel consumption.
It is likely that France will eventually adopt some form of mileage taxation for electric cars. As in California, this tax helps finance the maintenance of road infrastructure, important despite declining revenues from fossil fuels. The transition to more sustainable mobility brings with it financial challenges that governments must face, with significant revenue shortfalls. For example, in 2019, the TICPE (domestic consumption tax on energy products) brought more than 31 billion euros to the State …