Electric Car Growth Sparking $300 Billion Budget Loss for States

States are being forced to adapt to dwindling tax revenues from sales of gasoline and automobiles that will trigger large shortfalls in their budgets over the next two decades.

One economic model suggests the states could lose more than $300 billion annually by 2040 if they fail to modify their tax codes to adjust to electric and self-driving vehicles. New transportation business models such as shared vehicle ownership and network-owned vehicle organizations will also impact state revenue.

“Already revenues are way down because of improved fuel economy, and electric cars and hybrids will further impact gasoline sales,” said Richard Pomp, ...