4 Fiscal Constraints from Autonomous Vehicles

• AVs will reduce revenue from vehicle-related taxes and fees on sales, licensing, registration, and fuel
• AVs will reduce revenue from car rentals, auto repairs, vehicle financing, parking, ride-sharing and gas stations
• The impact to Texas: Vehicle revenues drop by 1/3
  • Over a 15-year period revenue drops from 18.4%of total state revenue in 2025 to 12.7% in 2040
• The revenue impact to Vermont would be a 3.3% reduction in vehicle related tax revenue

Pew Charitable Trust recommendation to lessen the revenue hit from AV: Shift new taxes or fees to road use or vehicle miles traveled

Pew Charitable Trusts via Governing | States and the Fiscal Constraints Autonomous Vehicles May Bring