DES MOINES — In about 20 years from now, the growing use of electric vehicles could take a quarter-billion-dollar-a-year hit on a state fund relied upon to finance better roads, the Iowa Department of Transportation said Tuesday.

Iowa’s motor fuel tax revenue is falling as average fuel efficiency is increasing and as more Iowans choose electric vehicles, Iowa DOT Director of Planning, Programming and Modal Division Stuart Anderson told members of the House Transportation Committee. For the current fiscal year, fuel taxes are expected to generate $656 million.

Legislation approved last year directed the Iowa DOT to assess the impact of electric vehicles on the Road Use Tax Fund, a pool of money that comes primarily from taxes drivers pay at the gas pump and also from vehicle registrations.

Read the full article on the Cedar Rapids Gazette website.