The Texas House passed a bill on Thursday that would charge owners of electric vehicles a $200 yearly tax by a vote of 145-0.
Notably, the Senate already approved Senate Bill 505 on March 29. Therefore, the bill is now just waiting for Governor Greg Abbott’s signature to officially become law.
The Texas House has a justification for its support of the legislation
The Senate Bill 505’s sponsors and the head of an anti-toll road group claimed that higher vehicle registration fees would be necessary to ensure that EVs pay their fair part of highway costs.
“As more of these vehicles drive on Texas roads, there are concerns about how they contribute to the funding of the roads which they use. Currently, Texas uses the gasoline/diesel fuel tax to fund transportation projects; however, with the growing use of EVs, the revenue from the fuel tax is decreasing, which diminishes our ability to fund road improvements for all drivers.”
Republican Sen. Robert Nichols of Jacksonville, Senate Bill 505 author
Additionally, Nichols wrote that since electric vehicles share the same roads as internal combustion engine vehicles, they ought to be “subject to an equalization of road use consumption amount.”
On March 22, Nichols emphasized how the state is losing highway funds with every emerging electric vehicle that replaces ICE vehicles during the Senate Transportation Committee.
“Electrical vehicles are a new paradigm shift in the transportation world. They’re a growing part of our system. We recognized some time ago that each time an all-electric vehicle does get on the road and displaces a gasoline or diesel vehicle that the state highway fund loses money. So the object here is to try to identify how much money do we lose on both state and federal and try to make that up with a fee adjustment.”
Republican Sen. Robert Nichols of Jacksonville, Senate Bill 505 author
In contrast, the $200 annual fee was deemed by a renowned Texas environmentalist and a national consumer advocacy group to be a “punitive” price that would hinder the uptake of cleaner vehicles.
“The Texas Legislature is pouring sugar in the tank of the electric vehicle revolution. This punitive fee will make it harder for Texans to afford these clean vehicles which are so critical to reducing air pollution in Texas.”
Luke Metzger, Environment Texas’ executive director
See Also:
- Road-user tax led to hundred of EVs being deregistered, per a report
- Victorian opposition pledged electric-car chargers and to pause road-user tax
- NSW Government declares EV road-user charges to compensate for lost fuel excise revenue
- BYD’s mysterious new brand, labeled “F Brand” may target the off-road market
- Tesla lithium refinery project enters finals negotiations with Texas
The law would mandate a $400 registration charge for everyone purchasing a new electric vehicle. There will be a $200 cost for those who renew their registration. Additionally, the bill requires that the state highway fund receive the money from these fees.
The law will take effect on September 1 if the governor signs it into law.
