Report highlights Louisiana could lose millions in gas tax revenues due to shift to EVs
In Louisiana, The Livingston Parish News reported that a new report highlights Louisiana’s declining gas tax revenues amid a government-motivated transition to electric vehicles. A report issued by the Reason Foundation examined the impact on Louisiana’s gas tax revenues based on different scenarios of electric vehicle adoption in the coming years. Collections from Louisiana’s 20% per gallon gas tax, the primary funding source for road and bridge work, increased from $590 million in fiscal year 2014 to $636.4 million in fiscal year 2019, before declining by 8% to $585 million amid the pandemic in 2020. By fiscal year 2022, revenues had rebounded to $622.4 million, but researchers expect increased fuel efficiency standards and electric vehicle sales to put collections on a downward trajectory over the coming decades, according to the report. “Under the worst case, in which a high-level shift to electric vehicles is assumed, potential fuel tax revenue in Louisiana would be reduced by almost 40% by 2040 and almost 49% by 2050,” according to the report. “With a mid-level electric vehicle shift, Louisiana could anticipate a decline in fuel tax revenue to about $500 million by 2040 and slightly less per year through 2050.”
