Florida’s roads are getting busier, but the gas tax revenue that pays for their upkeep is heading in the opposite direction—and electric vehicles are at the center of it. According to a new report by Florida TaxWatch, the Sunshine State is losing as much as $78 million a year in fuel tax revenue thanks to the rising popularity of electric and plug-in hybrid vehicles. And with more Floridians plugging in instead of filling up, lawmakers are grappling with how to replace that lost income.
EV Growth Shifting the Revenue Equation
In 2023, Florida recorded nearly 255,000 registered electric vehicles (EVs) and 57,000 plug-in hybrids (PHEVs), marking a staggering 2,097% and 467% increase respectively since 2016. During the same period, registrations for gas-powered cars rose just 15.8%.
As more drivers switch to electric, they’re no longer paying the gas taxes that traditionally fund Florida’s transportation infrastructure. Right now, every gallon of gasoline sold in Florida generates about 56 cents in taxes, with nearly half of that going directly to the State Transportation Trust Fund (STTF).
That fund, in turn, pays for everything from new highway lanes to bridge replacements. In the 2024–25 fiscal year alone, Florida budgeted $14 billion for transportation projects—most of it dependent on vehicle-related taxes and fees. But EVs don’t use gasoline. And while they do incur sales tax when charging at public stations, that money doesn’t go to the STTF.
How Much Are We Losing?
Florida TaxWatch estimates that the state is already missing out on between $46.4 million and $78.3 million annually in fuel tax revenue because EV and PHEV drivers aren’t buying fuel. The exact number depends on how you calculate it—either by the number of registered vehicles and average miles driven, or by energy consumption data from charging stations.
Those numbers may seem small in the context of a $14 billion transportation budget, but they’re growing. The Florida Department of Transportation (FDOT) projects that if the state does nothing, revenues from fuel taxes could fall short by up to 20% by 2040.
Florida Falling Behind Other States
While 39 states have already taken steps to recoup lost gas taxes—typically by adding annual registration fees for EVs—Florida hasn’t implemented any such policy.Each year since 2020, lawmakers have proposed adding a $200 annual license tax for electric vehicles and $50 for plug-in hybrids. None of those bills have passed.
In the 2025 session, legislators are taking another stab at the issue. Several bills, including SB 462 and HB 567, aim to redirect some of the sales tax already collected from public EV charging stations into the transportation trust fund. The proposed plans would allocate between $50 million and $75 million annually to help plug the revenue gap.But that’s still only a patch.
“Redistributing sales tax revenue is a decent first step,” said Florida TaxWatch President and CEO Dominic Calabro. “But it doesn’t fully reflect the user-pays principle that was the backbone of the fuel tax system.”
Why Not Just Raise Registration Fees?
Supporters of higher EV fees argue that it’s the simplest and fairest fix. The average Florida driver pays around $190 a year in fuel taxes. A flat EV fee would attempt to match that cost.But not everyone is on board.
Critics argue that a flat fee is regressive—hurting drivers who don’t use their cars much—and might discourage people from buying electric cars in the first place. That’s especially true for retirees or low-mileage drivers. “Why should a retiree who only drives to the grocery store pay the same as a commuter logging 30 miles a day?” one resident asked during public hearings.
Others point out that Florida already taxes EV charging at public stations. Adding more fees on top of that feels like double-dipping.
What About Charging Station Taxes?
Some states are taxing EV drivers based on how much electricity they use at public charging stations—typically around 3 cents per kilowatt-hour. That’s roughly in line with gas taxes in terms of cost per mile driven. But this strategy has its limits.
Most EV owners charge their vehicles at home—86%, according to recent surveys—and taxing home electricity use is a lot harder. It would likely require specialized metering equipment or cooperation from automakers to track energy consumption. That brings up privacy concerns, infrastructure costs, and data-sharing hurdles.
A More Complicated Fix: Tax Per Mile?
One idea gaining traction nationally is the Vehicle Miles Traveled (VMT) tax—a system where drivers pay based on how many miles they drive rather than how much fuel they use. Four states, including Utah and Hawaii, are already testing voluntary VMT programs. Florida could follow suit, but there are obstacles. Tourists and out-of-state drivers—who make up a big chunk of Florida’s road users—would be difficult to track and tax under such a system. Telematics (GPS-style tracking) would also raise privacy red flags.
The Road Ahead
For now, the most likely short-term solution is one of the bills currently under consideration in Tallahassee that would redirect sales tax revenue from EV charging to the transportation fund. It’s not perfect, but Florida TaxWatch believes it’s better than inaction. “Absent a vehicle miles traveled model, it’s difficult to treat all drivers the same,” the report concludes. “But doing something—anything—is better than doing nothing.”
With EVs expected to make up as much as 50% of new car sales nationwide by 2030, Florida’s transportation budget will have to adapt. Whether lawmakers can agree on how to do that remains to be seen.
🛻 Fun Fact: Florida has 3,721 EV charging stations across the state—more than half as many as the 6,000+ gas stations that currently dot the landscape.
📌 Want to read the full Florida TaxWatch report? It’s available online at: floridataxwatch.org/Research
