HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 107 Impact of Electric Vehicles and Plug-in Hybrid Electric Vehicles on State
Revenues and State Trust Funds
SPONSOR(S): Ways & Means Committee, Transportation & Modals Subcommittee, Esposito, and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 28
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Transportation & Modals Subcommittee 16 Y, 0 N, As CS Hinshelwood Hinshelwood
2) Ways & Means Committee 23 Y, 0 N, As CS Berg Aldridge
3) Infrastructure Strategies Committee 22 Y, 0 N Hinshelwood Harrington
SUMMARY ANALYSIS
Florida has the second-highest number of registered electric vehicles (EVs) in the country. The combination of
increasing market share of EVs and hybrid vehicles as well as more fuel-efficient internal combustion engine
vehicles is expected to continue adversely impacting statewide and local fuel tax revenues, which provide
funding for transportation expenditures. Over the next 20 years in Florida, the revenue loss due to increased
EV market penetration is estimated to range from 5.6 percent to 20 percent, depending on the EV market
penetration rate. At the local level, the loss of revenue could impact operations and maintenance of local
roadways and public transportation. Currently, the typical Florida driver pays $283 in motor fuel tax each year
for transportation related projects.
Florida does not currently impose additional registration fees, excise taxes, or user charges on EVs or PHEVs.
The bill requires the Revenue Estimating Conference (REC) to estimate the impact on the General Revenue
Fund in fiscal years 2024-2025, 2025-2026, and 2026-2027 of sales tax levied on the sale of electricity that is
used to charge EVs. The REC must provide this estimate to the Department of Revenue no later than the June
10 preceding the start of the applicable fiscal year. This provision expires June 30, 2027.
Beginning July 2024, the bill directs the Department of Revenue to distribute to the State Transportation Trust
Fund (STTF) one-twelfth of the amount estimated by the REC for that state fiscal year. This provision expires
June 30, 2027.
In addition, the bill recognizes that the continued adoption of EVs and plug-in hybrid electric vehicles will have
significant effects on state tax collections and the STTF. To better understand these effects, the bill requires
the Office of Economic and Demographic Research (EDR) to produce a report that estimates the long-term
impact on the State Transportation Trust Fund, the impact on sales tax and gross receipts tax revenues
expected to result from the continuing adoption of EVs and PHEVs in the state, and the perc entage of users
that utilize residential charging stations rather than commercial charging stations. The report must also
consider federal policies that incentivize or promote EVs and the impact of such policies on the speed of
continued adoption of EVs.
EDR must submit the report by December 1, 2026, and the report must be used by the 2027 Legislature to
consider potential policy changes needed to address the long-term impact on the STTF.
The Revenue Estimating Conference has not estimated the revenue impacts of this bill. For fiscal years 2024-
2025, 2025-2026, and 2026-2027, the bill will have a negative impact on General Revenue and an equivalent
positive impact on state trust fund revenue.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0107g.ISC
DATE: 2/15/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Electric Vehicles and Revenue Impacts in Florida
Florida has the second-highest number of registered electric vehicles (EVs) in the country. 1 According
to the Southern Alliance for Clean Energy, EVs made up nearly 3 percent of all cars sold in Florida from
July 2020 to July 2021, and EV charging station deployment grew 54 percent.2 In that same period,
utility investment rose 815 percent, and government funding in Florida topped $100 million through a
combination of state-controlled Volkswagen Settlement Funds and federal Low or No Emission Vehicle
Program grants.3 With the passage of the federal Infrastructure Investment and Jobs Act in 2021,
Florida will receive an additional $198 million over a five-year period from the National Electric Vehicle
Infrastructure program to advance Florida’s charging capacity for EVs. 4
The combination of increasing market share of EVs and hybrid vehicles as well as more fuel-efficient
internal combustion engine vehicles is expected to continue adversely impacting statewide and local
fuel tax revenues.5 Over the next 20 years in Florida, the revenue loss due to increased EV market
penetration is estimated to range from 5.6 percent to 20 percent, depending on the EV market
penetration rate.6 At the local level, the loss of revenue could impact operations and maintenance of
local roadways and public transportation.7
Average Fuel Tax Paid by Florida Drivers
Currently, the typical Florida driver pays $283 in motor fuel tax each year – $90 in federal fuel tax, $123
in state fuel tax, and $69 in local fuel tax – for transportation related projects.8 These amounts equate
to approximately $0.024 per mile.9
Transportation Funding Models for EVs and Plug-In Hybrid Electric Vehicles (PHEVs)
Special Registration Fee
Currently, 33 states have implemented a registration fee supplement for EVs, and 18 of those states
assess a lower fee on PHEVs.10 These fees are typically in addition to traditional motor vehicle
registration fees.11
1 WUSF Public Media, Florida, No. 2 in nation for electric cars, about to get a boost to its charger network (Feb. 13, 2022),
https://wusfnews.wusf.usf.edu/environment/2022-02-13/ florida-no-2-in-nation-for-electric-cars-about-to-get-a-boost-to-its-
charger-network (last visited Feb. 7, 2024). See also U.S. Department of Energy, Electric Vehicle Registrations by State,
https://afdc.energy.gov/data/10962 (last visited Feb. 7, 2024).
2 Southern Alliance for Clean Energy, Florida’s Electric Vehicle Mark et is Ready for Lift Off (Dec. 8, 2021),
https://cleanenergy.org/blog/floridas-electric-vehicle-mark et-is-ready -for-lift-off/ (last visited Feb. 7, 2024).
3 Id.
4 Florida Department of Transportation, Florida’s Electric Vehicle Infrastructure Deployment Plan (Aug. 2022),
https://www.fhwa.dot.gov/environment/nevi/ev_deployment_plans/fl_nevi_plan.pdf, p. 12 (last visited Feb. 7, 2024).
5 Motor fuel is subject to state taxation pursuant to ch. 206, F.S. Federal and local option taxes are also levied on motor
fuel. Most of the revenue from the fuel sales tax is distributed to the State Transportation Trust Fund, which provides a
funding source for the Florida Department of Transportation’s 5-year work program.
6 Florida Department of Transportation, EV Infrastructure Master Plan (July 2021),
https://fdotwww.blob.core.windows.net/sitefinity/docs/default -
source/emergingtechnologies/evprogram/fdotevmp.pdf?sfvrs n=b5888a_2, p. 27 (last visited Feb. 7, 2024).
7 Id.
8 Florida Department of Transportation, Florida’s Transportation Tax Sources: A Primer (2023),
https://fdotewp1.dot.state.fl.us/FMSupportApps/Documents/pra/P rimer. pdf (last visited Feb. 7, 2024).
9Id.
10 National Conference of State Legislatures, Special Fees on Plug-In Hybrid and Electric Vehicles (Mar. 27, 2023),
https://www.ncsl.org/energy/special-fees-on-plug-in-hybrid-and-electric-vehicles (last visited Feb. 7, 2024).
11 Id.
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Annual fees for EVs range from $50 in Colorado, South Dakota, and Hawaii to $225 in Washington.
Fees for PHEVs range from $48.75 in Iowa, to $100 in Alabama, Arkansas, Ohio, and West Virginia;
Wisconsin imposes a fee of $160 on all hybrid EVs, not just PHEVs.12
Revenue from these fees is most commonly directed toward the state transportation fund, but a few
states also use some of the fee revenue to support EV infrastructure or other priorities. 13 Examples of
the distribution of these fees include the following:14
Alabama allocates $50 of its $200 fee for new EV infrastructure.
Washington added an additional $75 fee in 2019 to support charging stations.
Colorado dedicates $20 of the $50 EV fee to the Electric Vehicle Grant Fund to support
charging stations.
Louisiana directs a portion of these revenues to local governments to support local
transportation and infrastructure funds.
Kentucky splits revenues between the road account and the state’s general fund.
At least six states (California, Colorado, Indiana, Michigan, Mississippi, and Utah) structure the
additional registration fees to grow over time by tying the fees to the consumer price index or another
inflation-related metric.15
Kilowatt Hour (kWh) Excise Tax
A kWh excise tax provides a means of capturing out-of-state revenue when cars charge at public
charging stations.16 Currently, the following five states impose a per-kWh excise tax on electricity used
to charge EVs and PHEVs:
Beginning January 1, 2025, Georgia requires a tax to be levied on public charging stations at a
rate equivalent to that of one gallon of regular grade gasoline, which is $0.26 per 11 kWh and
will be adjusted for increases in the Consumer Price Index and in fuel efficiency. 17
Beginning July 2, 2023, Iowa requires an excise tax of $0.026 per kWh on sales of electricity
dispensed at a public charging station.18
Beginning January, 1, 2024, Kentucky requires an excise tax of $0.03 per kWh on EV power
distributed by an EV dealer for the purpose of charging EVs. 19 The tax rate will be adjusted
annually by the percentage change, up to a maximum 5 percent increase or decrease, in the
National Highway Construction Index 2.0.20
Beginning January 1, 2024, public EV charging stations in Oklahoma are subject to a tax of
$0.03 per kWh.21 Residents may keep their receipts from the charging stations and apply for a
refund as a credit when paying state income tax.22
12 Id.
13 Id.
14 Id.
15 Id.
16 Presentation by Carolyn Kramer Simmons, Senior Director of State Funding Policy, ARTBA, at the at the Georgia Joint
Study Committee of Electrification on Transportation (Nov. 2, 2022),
https://www.youtube.com/watch?v=okiVRxErXlw&t=1430s , written material available at
https://www.house.ga.gov/Documents/CommitteeDocuments/2022/Electrification_of_Transportation/Nov_2/ Carolyn_Sim
mons_ARTBA.pdf (last visited Feb. 7, 2024).
17 Repairer Driven News, Georgia implements EV charging tax, Delaware passes home charging bill (July 7, 2023),
https://www.repairerdrivennews.com/2023/ 07/07/ georgia-implements-ev-charging-tax-delaware-passes-home-charging-
bill/ (last visited Feb. 7, 2024); Georgia Laws 2023, Act 248 (SB 146), https://gov.georgia.gov/executive-
action/legislation/signed-legislation/2023 (last visited Feb. 7, 2024).
18 Iowa Department of Revenue, Electric Fuel Excise Tax, https://tax.iowa.gov/electric-fuel-excise-tax (last visited Feb. 7,
2024).
19 KRS § 138.477(2).
20 KRS § 138.477(3).
21 68 Okla. Stat. tit. § 6504(A) (2022).
22 68 Okla. Stat. tit. § 6510 (2022).
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Pennsylvania currently imposes a charge of $0.0183 per kWh for electricity used to propel a
vehicle on a public highway. 23 The charge is based on converting electricity to the gasoline
gallon equivalent and then applying the current oil company franchise tax rate applicable to one
gallon of gasoline.24 However, Pennsylvania is considering moving to a flat annual fee for EVs
because the current alternative fuel tax requires EV owners to file monthly statements with the
state Department of Revenue and pay a tax on how much electricity their vehicle used, a
process which is complicated and which few people are even aware they are required to comply
with.25
Road Usage Charge (RUC)
A road user charge (RUC) is also known as a miles based user fee (MBUF), vehicle miles traveled
(VMT), or pay per mile (PPM).26 In a RUC system, drivers submit their mileage and fuel consumption to
an account manager (a private sector entity) who creates and sends an invoice to the vehicle owner
who then pays.27 The RUC system can be accomplished through a plug-in device in the vehicle, in-
vehicle telematics, odometer reading, or a flat fee.28 The account manager transfers the money
collected to the state.29 The state oversees and audits the account manager. 30 One report found that 5-
18 percent of revenue will go to RUC system administrative costs. 31
Oregon has the longest active RUC system pilot program, which has been around since 2015. Utah
started a RUC system in January of 2020. As of July 1, 2022, Virginia is the most recent RUC system,
which is open to all fuel-efficient vehicles.32
Florida does not currently impose additional registration fees, excise taxes, or user charges on EVs or
PHEVs.
Taxation of Electricity in Florida
The sale of electric power or energy by an electric utility is subject to the state sales tax at the rate of
4.95 percent,33 subject to numerous exemptions. The exemptions include sales for use in residential
households,34 sales for certain agricultural purposes,35 sales for use in operating manufacturing
machinery and equipment in a fixed location,36 and electricity used exclusively at a data center.37
23 Pennsylvania Department of Revenue, Alternative Fuels Tax,
https://www.revenue.pa. gov/Tax Types/MAFT/AltFuels Tax/Pages/default.aspx (last visited Feb. 7, 2024); Pennsylvania
Department of Revenue, Alternative Fuels Tax Rates,
https://www.revenue.pa. gov/Tax%20Rates/Pages/Alternative% 20F uels%20Tax%20Rates.aspx (last visited Feb. 7, 2024).
24 Pennsylvania Department of Revenue, Alternative Fuels Tax, supra note 23.
25 Government Technology, Pennsylvania EV Drivers Could Face $290 Annual Fee (June 8, 2023),
https://www.govtech.com/fs/pennsylvania-ev-drivers-could-face-290-annual-fee (last visited Feb. 7, 2024).
26 Presentation by Patricia Hendren, Executive Director, Eastern Transportation Coalition, at the Georgia Joint Study
Committee of Electrification on Transportation (Nov. 2, 2022), https://www.youtube.com/watch?v=okiVRxErXlw&t=1430s ,
written material available at
https://www.house.ga.gov/Documents/CommitteeDocuments/2022/Electrification_of_Transportation/Nov_2/ Trish_Hendre
n_Eastern_Transportation_Coalition.pdf (last visited Feb. 7, 2024).
27 Id.
28 Id.
29 Id.
30 Id.
31 Carolyn Kramer Simmons, supra note 16.
32 Patricia Hendren, supra note 26; Carolyn Kramer Simmons, supra note 16.
33 Section 212.05(1)(e)1.c., F.S.
34 Section 212.08(7)(j), F.S.
35 Section 212.08(5)(e), F.S.
36 Section 212.08(7)(ff), F.S.
37 Section 212.08(5)(r), F.S.
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State sales and use taxes are distributed pursuant to s. 212.20(6), F.S.38 in numerous ways, with
approximately 89.5 percent being distributed to the General Revenue fund and a further 10.2 percent
being distributed as revenue sharing with local governments and distributions. 39 The remainder is
distributed to various trust funds or specific entities for specific purposes. 40
Chapter 203, F.S., imposes, at the rate of 2.5 percent, a tax on gross receipts from the sale, delivery, or
transportation of electrical power or energy to a retail consumer in Florida. 41 In addition, a rate of 2.6
percent is levied on sales of electricity to non-residential customers not otherwise exempt.42 All
revenue received pursuant to this tax is deposited in the Public Education Capital Outlay and Debt
Service (“PECO”) Trust Fund.43 The use of such funds is limited to paying the principal and interest on
bonds to finance capital projects for institutions of higher learning, community colleges, vocational
technical schools, or public schools; the cost of any public educational facility capital project; and the
cost of maintenance, restoration, and repairs.44
Effect of the Bill
The bill requires the Revenue Estimating Conference (REC) to estimate the impact on the General
Revenue Fund in fiscal years 2024-2025, 2025-2026, and 2026-2027 of sales tax levied on the sale of
electricity that is used to charge EVs. As residential households are exempt from the sales tax on
electricity, this estimate will generally represent the sales tax impact of commercial charging stations in
Florida. The REC must provide this estimate to the Department of Revenue no later than the June 10
preceding the start of the applicable fiscal year. This provision expires June 30, 2027.
Beginning July 2024, the bill directs the Department of Revenue to distribute to the State
Transportation Trust Fund (STTF) one-twelfth of the amount estimated by the REC for the applicable
fiscal year to represent the portion of sales tax collected on electricity used to charge EVs that would
have gone into the General Revenue Fund. This provision expires June 30,