TSLA354.8101.97%
GM77.000-3.47%
F12.050-0.2539%
RIVN14.940-0.03%
CYD31.030-1.58%
HMC31.600-0.49%
TM183.100-3.615%
CVNA62.555-1.065%
PAG200.340-1.44%
LAD291.8302.57%
AN157.4400.64%
GPI240.450-0.48%
ABG172.300-1.65%
SAH60.3500.5%
TSLA354.8101.97%
GM77.000-3.47%
F12.050-0.2539%
RIVN14.940-0.03%
CYD31.030-1.58%
HMC31.600-0.49%
TM183.100-3.615%
CVNA62.555-1.065%
PAG200.340-1.44%
LAD291.8302.57%
AN157.4400.64%
GPI240.450-0.48%
ABG172.300-1.65%
SAH60.3500.5%
TSLA354.8101.97%
GM77.000-3.47%
F12.050-0.2539%
RIVN14.940-0.03%
CYD31.030-1.58%
HMC31.600-0.49%
TM183.100-3.615%
CVNA62.555-1.065%
PAG200.340-1.44%
LAD291.8302.57%
AN157.4400.64%
GPI240.450-0.48%
ABG172.300-1.65%
SAH60.3500.5%

Automakers group proposes replacing gas tax with vehicle fee

Alliance for Automotive Innovation CEO John Bozzella says a per-vehicle fee would address funding gaps as gas tax revenue declines.

Alliance for Automotive Innovation, Automakers group proposes replacing gas tax with vehicle fee

John Bozzella, the head of the Alliance for Automotive Innovation

On the Dash:

  • A shift from fuel taxes to a vehicle-based fee could change how all customers, including EV buyers, contribute to infrastructure costs.
  • Weight-based fees may impact ownership costs for larger vehicles, potentially influencing consumer purchasing decisions.
  • Ongoing federal and state proposals signal continued policy uncertainty around EV fees and long-term road funding.

According to John Bozzella, the head of the Alliance for Automotive Innovation representing General Motors, Toyota, Volkswagen, Hyundai, and other major car companies, said in a proposal first reported by Reuters, the government should address the increasing financial shortfall in the highway trust fund by imposing a single fee on every vehicle based on weight.

Despite Congress not raising the federal gas tax since 1993, the increase in EVs and more fuel-efficient cars has left gas tax revenue falling short of meeting highway repair needs. Because it was not indexed to inflation, the tax has lost more than 60% of its value in real terms.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

Bozzella said the fee would be collected like a registration fee and argued it would ensure all vehicles contribute to maintaining the transportation network while addressing disparities in how drivers currently pay for road use.

Since 2008, more than $275 billion, including $118 billion from the 2021 infrastructure law, has been shifted from the general fund to pay for road repairs.

Many Republicans want to impose a fee on EVs to help fund infrastructure. Last year, House Republicans proposed a new $250 annual fee on EVs and a $100 fee on hybrid EVs, but neither was included in a major tax-and-spending bill. The current five-year surface transportation law expires on September 30.

Some states already charge fees for EVs to cover road repair costs. In February 2025, some Republican senators proposed a $1,000 tax on EVs to fund road repairs.

Most revenue for federally funded road repairs is collected through diesel and gasoline taxes, which EVs do not pay. Last year, the Electrification Coalition argued that a $250 fee for EVs was unfair, since the average gas-powered vehicle pays just $88 in federal gas taxes each year.

More from Industry News
GM and LG expand LMR battery production with 500 new Tennessee jobs

GM and LG expand LMR battery production with 500 new Tennessee jobs

- September 30, 2026
On the Dash: Ultium Cells plans to become the first manufacturer to commercially produce LMR prismatic battery cells, with production expected to begin after facility upgrades are completed in 2028. ...
Mercedes-Benz won't be banned under Chinese vehicle bill, Sen. Bernie Moreno says

Sen. Moreno says Chinese vehicle bill will not ban Mercedes-Benz in the U.S.

- September 30, 2026
On the Dash: Sen. Bernie Moreno (R-Ohio) says the Chinese vehicle bill will not ban Mercedes-Benz from selling in the U.S. Mercedes-Benz has nearly 20% Chinese ownership, which is above...
BMW targets 5% margins by 2028 as it expands local production

BMW targets 5% margins by 2028 as it expands local production

- September 30, 2026
On the Dash: BMW is targeting a 3% to 5% automotive division margin by 2028, with a longer-term goal of 8% to 10% in the early 2030s. The automaker plans...
Robotaxi rides winning over autonomous vehicle skeptics, study finds

Robotaxi rides winning over autonomous vehicle skeptics, study finds

- September 29, 2026
On the Dash: Ownership of Level 2 and Level 3 vehicles nearly tripled in a decade, reaching 34%, Cox Automotive study finds. Only 10% of consumers want a fully driverless...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.