BATON ROUGE, La. — Louisiana Electric Vehicle Task Force members met March 7 to discuss updated data on the state’s motor fuel tax and assess options for addressing the declining revenues.
The Center Square reported that the Louisiana Legislative Auditor’s Office presented the task force with an updated report that stated that the state is anticipated to lose $563 million in fuel tax revenues by 2032 due to increasing fuel efficiency and electric vehicles.
The task force was presented with data from the Department of Transportation and Development that identified $18.8 billion in unmet transportation infrastructure needs in Louisiana.
The motor fuels tax accounted for about $620 million of total revenues for the Transportation Trust Fund, which amounted to about $2.2 billion in fiscal year 2022.
The Louisiana Legislative Auditor’s Office projected that road usage fees on vehicles would need to increase by between $94 and $328 per vehicle over a 30-year period, depending on various factors and assuming no new transportation projects, to eliminate the state transportation backlog.
The task force also discussed how other states are collecting fees for electric vehicles, how different vehicle types contribute to road damage, and whether the state can charge sales tax at charging stations. The state can charge sales tax at charging stations, but residential utilities are exempt from sales tax under the constitution, which makes it an issue.
Additionally, the task force heard from Jody Montelaro, vice president of public affairs for Entergy, regarding a pending docket at the Public Service Commission regarding reselling power per kilowatt hour.
The task force is expected to continue discussions on a regular basis leading up to the 2023 legislative session that begins on April 10.
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