TEXAS has announced plans to charge vehicle owners a $200 annual fee, as well as a $400 one-time fee for new owners. The law, signed by Governor Greg Abbott, is set to take effect on September 1 of this year.
Those who have an electric vehicle will be responsible for paying the new annual fee in order to recoup tax money.
Electric vehicle owners do not have to pay taxes on gasoline, since they no longer need it.
According to the Dallas Morning News, this law will not apply to anyone that owns electric motorcycles, mopeds, or autocycles.
These taxes on gas are normally utilized for improvement in the state including schools, highway, and road repairs.
According to the comptroller’s office, this new law plans to generate $38million for the state highway fund, in addition to the $3.8billion they will eventually earn from gasoline and diesel taxes.
“This is extremely important to make sure people are paying their fair share and that we have adequate funding for the preservation and maintenance of our highways in the future,” said State House Rep. Terry Canales, an Edinburgh Democrat, in April of this year.
For reference, the average person with a gasoline-powered vehicle pays approximately $130 in state gas taxes per year in Texas, according to data maintained by the Federal Highway Administration and the Environmental Protection Agency.
And not everyone is happy about the change as it could disincentivize people buying electric cars.
“Texas is really behind the curve on trying to do the right thing by the environment. And so, that’s embarrassing, I think, for all of us,” UT-Austin transportation engineering professor Kara Kockelman told KVUE.
Consumer Reports policy analyst Dylan Jaff also criticized the law, stating that it will not be as helpful to the state's road funding as it claims to be.
“Consumers should not be punished for choosing a cleaner, greener car that saves them money on fuel and maintenance,” he said in a release.
“The fees proposed in this bill will establish an inequitable fee scale for EV owners and will not provide a viable solution to the long-standing issue of road funding revenue.”
Texas is joining 18 other states that passed laws to create annual fees for electric vehicles. According to MYEV, the annual fee is definitely more expensive, as the average annual fee ranges from $50-200.
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