DALLAS -- States are turning to a mix of strategies, including special fuel taxes and user fees, to protect their gasoline-based revenues as the number of hybrid and alternatively fueled vehicles continues to grow, according to a new study from the Transportation Investment Advocacy Center.
"One key challenge for state governments is that these vehicles still cause wear and tear on roads and bridges, but are not paying as much in motor fuel-related taxes because they use significantly less gas and diesel fuel," said Carolyn Kramer, director of the center that is sponsored by the American Road & Transportation Builders Association.
The number of alternative-fuel cars and light trucks is expected to grow from 21.5 million vehicles in 2016, which is about 9% of the U.S. vehicle stock, to 29.3 million vehicles by 2021, or about 12% of the entire fleet, according to the U.S. Energy Information Administration.[
Electric-gasoline hybrid vehicles can achieve fuel efficiencies of up to 50 miles per gallon of gasoline while more advanced models can travel more than 130 miles on a single gallon of gasoline, Kramer said. The current fleet average is about 26 miles per gallon.
Alternative fuels include compressed and liquefied natural gas, biodiesel, ethanol, and liquid petroleum gases.
An excise tax on the purchase of alternative fuels is levied by 45 states while 10 states have instituted an annual road user fee on electric cars, Kramer said. Six states also provide full or partial fuel tax exemptions for gasohol, a blend of 90% gasoline and 10% fuel alcohol.
Several states have a flat fee for alternative vehicles, while others levy a varied fee based on vehicle weight. Others require owners to pay both an annual fee and a fuels excise tax.
The annual road user fees are generally administered at the time of vehicle registration or inspection.
The registration fee for electric cars ranges from $50 per year in Colorado to $200 per year in Georgia and Michigan. Wyoming levies a one-time $200 registration fee for electric vehicles. Electric vehicles in Virginia are subject to a registration fee of $64 per year.
Hybrid owners in Idaho, Michigan, and Washington must also pay an annual road user fee.
Alternative fuel vehicle owners can pay an annual fee rather than the excise tax in 13 states, and six states require a special license or annual fee from alternative fuel dealers.
Alabama and New York have no special fees or taxes on alternative fuels or non-traditional vehicles.
Nine states adjusted their motor fuel taxes as 2016 began, with four increases to provide more funding for transportation projects and five decreases triggered by falling gasoline prices, according to Kramer.
Gas taxes went up Jan. 1 in Utah, Nebraska, Maryland, and Florida.
Utah posted the largest increase, with its gasoline and diesel taxes rising to 29.4 cents per gallon from the previous 24.5 cents as a result of road funding legislation that passed in March 2015.
Variable-rate fuel taxes were up in Maryland and Florida because those states link motor fuel tax rates to the Consumer Price Index, Kramer said.
Motor fuels taxes tell on Jan. 1 in Pennsylvania, New York, North Carolina, Vermont, and West Virginia, she said. The variable-rate formulas in those states are based on the average wholesale price of gasoline.
Virginia's gasoline sales tax was set for a decrease on Jan. 1 based on the formula in a 2013 revamp of the state's transportation funding, but it did not occur because the price of the fuel fell below the minimum set in the legislation.
