A bill sent to Gov. Greg Abbott by the Texas House passed, requiring electric vehicle owners to pay $200 a year. Electric vehicle owners would have to pay $400 to register new vehicles.
According to the bill’s authors and the leader of an anti-toll group, these increases in vehicle registration fees are necessary to ensure that electric vehicles contribute their fair share of highway costs.
“This is extremely important to ensure that people pay their fair share and that we have adequate funding for the preservation and maintenance of our roads in the future,” said state Rep. Terry Canales.”
The House initially approved the bill, 145-0. Abbott signed it over the weekend. The law takes effect on September 1, 2023.
In accordance with The Dallas Morning News, owners of gasoline and hybrid vehicles will not pay these fees because they instead pay a gas tax of 20 cents per gallon. The new tax also does not apply to electric motorcycles, mopeds and autocycles.
According to Federal Highway Administration and Environmental Protection Agency data on average annual mileage and fuel economy, the typical owner of a gasoline vehicle pays approximately $130 in state taxes on gasoline each year.
While both the gas tax and electric vehicle tax contribute to the state highway fund, a portion of gas tax revenue also goes to schools. Implementation of the new tax is expected to channel at least $38 million in additional funds into the state highway fund. Gasoline and diesel taxes are projected to generate roughly $3.8 billion in state revenue by 2024, according to the comptroller’s office.
While debating the bill in the House on April 24, 2023, lawmakers proposed the concept of establishing a reduced rate level for electric vehicles, specifically targeting lighter vehicles, at an annual rate of $100 . However, the idea was defeated and the bill ultimately passed with substantial bipartisan support.
