From the National Conference of State Legislatures: Road Use Charges

A look at how states are looking at shifting away from a gas tax, which would address the problems caused by electric cars.

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Road usage charges (RUCs)—also known as mileage-based user fees (MBUFs) or vehicle miles traveled (VMT) fees—are transportation funding mechanisms that seek to more closely link transportation taxes to the actual use of the roadways by a driver, as compared to traditional fuel taxes.

As states struggle to keep pace with increasing funding shortfalls and maintenance backlogs, lawmakers are exploring innovative approaches to increase revenues for transportation. One approach is to restructure existing gas taxes into a variable-rate tax to better reflect increased construction costs or fuel efficiency of vehicles. Similarly, some states have attempted to recapture revenues from drivers who now use electric or hybrid vehicles that use less or no gas at all.

A RUC goes one step further, potentially eliminating the need for a gas tax altogether, by charging drivers on a per-mile-driven basis. Proponents see this as a way to increase transportation revenues even as fuel purchases decrease and vehicle miles traveled increases, due to improved vehicle efficiency.