New tax for EV's in Texas

[Yossarian]

I think we all know that road maintenance is funded by a tax on motor fuel, one that is obviously not paid if you drive an EV. I also think that most who own EV's (or are waiting for delivery for one) are fine with paying some kind of additional tax for road maintenance. That said, I hope that states that do impose an additional EV tax do it a less punitive manner than Texas.

The state tax on new EV's (set at $400) extracts the equivalent number of dollars as paid by someone using 2,000 gallons of fuel. The continuing tax is half that, so the equivalent to what you'd pay purchasing 1,000 gallons. As it says in the article. the average owner of a gasoline-fueled vehicle pays roughly $130 in state gas taxes per year; at 20 cents per gallon, equivalent to 650 gals annually. Texas seems to be going out of its way to make EV ownership financially painful.

Electric vehicles in Texas face new tax as Gov. Abbott signs law
Texas owners of electric vehicles will need to pay $400 to register a new EV, $200 annually.

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[Donald Stanfield]

Yeah this sort of thing is going to be more and more common.

 

[madgrey]

Sounds like vehicle weight was a consideration, which I suppose makes sense considering part of the tax is for road maintenance. I guess they considered a lower tier for lighter EVs but it didn't go through.

 

[Notaevfan]

Here in Texas, I spend close to $600 per year in gas tax on my truck, not to mention my other vehicles. So $200 is not bad at all, especially when you look at other states. Owning an EV in Texas is not painful nor do I feel this is punitive.

 

[SANZC02]

Here in Texas, I spend close to $600 per year in gas tax on my truck, not to mention my other vehicles. So $200 is not bad at all, especially when you look at other states. Owning an EV in Texas is not painful nor do I feel this is punitive.

I agree, does not sound punitive, outside of having the fee based on mileage seems like an Ok compromise. At 20 cents a gallon that equates to 18k miles on a vehicle getting 18 miles per gallon.

Comparing it to heavier vehicles like a Raptor getting closer to 13 mpg it is only around 13k miles annually.

 

[mini2nut]

Texans will now be paying $.57 cents per day to the state, $4.00 per week, for the privilege of owning a BEV.

 

[Count Orlok]

yawn

 

[Animalhouse]

Here in Alabama its on the very bottom on the back page when you go to renew your car tags
BEV:$100
EV: $200
Small price to pay for as much as I am driving since have I hopped on the EV band wagon (me and my dogs are loving the drive to new places each weekend).

There was an article for New Jersey I think last spring/summer where one of the state legislators was trying to push a bill to charge EV owners per mile since so many people were changing over to EVs. It didn’t make it very far.

This will be a growing story as more people have a more board choice when it comes to EV’s (hybrid or plug in). States will have to do hire out how to get their funds for the roads.

 

[TXR1S]

My registration expires 9/30/23. I can renew as early as 7/4/23. Hoping to avoid this at least 1 year!

 

[moosetags]

I believe that this is coming for all EV owners everywhere. If these extra EV fees are applied fairly, I don't think that there will be very much complaining.

Brian

 

[Ready4Rivian]

I prefer this over a per mile tax. They made it a little on the high side I think because they will probably stick with it for many years. The gasoline tax in Texas has been the same since 1991.

 

[KingTodd]

There was a bill in PA in 2020 that passed the PA House, not sure about the senate, nor if it ever made it to the governor, but it would have been for a $175/yr for an EV, and $75 for a hybrid. I'm fine with it, because I want better infrastructure and will pay for it. Plus, there is no reason EV's should get a pass on paying for the roads.
TX is doing the right thing here in my opinion as is any other state that passed such legislation.

 

[Tango45]

If I remember correctly, Virginia also has a special tax for EVs and hybrids. The stated intent is to compensate for the lack of revenue from taxes placed on gas which go to road maintenance. I can accept that. However, if it becomes a tool to punish EV owners, that's a problem. I have read that is the case in some states based on average gasoline taxes vs those applied to EVs.

 

[Rivdog]

Oregon has special EV taxes too. I know they’re not earmarked this way, but it should also be to help improve the electric grid along with road maintenance.

 

[CaptRat]

GA has one too, $212.78/yr, and it’s tied to inflation. They also passed a law in March to add a tax for electricity at public charging stations (per 11kw.) All of that is supposed to replace gas taxes which go to the highway fund. However, I believe all of these EV taxes will go to the general fund. So much for bolstering nfrastructure.

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