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Texas will bill EV drivers $200 a year
By Mark Hrywna
9/1/2023
On Sept. 1, Texas will start charging electric vehicle (EV) drivers an additional fee of $200 each year—an amount comparable to what the state lost in federal and state gasoline tax dollars when an EV replaced a gas-fueled one, according to a
2020 report
.
Earlier this year, state lawmakers passed Senate Bill 505, which requires EV owners to pay the fee when they register a vehicle or renew their registration, according to
The Texas Tribune
. It’s being imposed because lawmakers said EV drivers weren’t paying their fair share into a fund that helps cover road construction and repairs across Texas. The cost will be especially high for those who purchase a new EV and have to pay two years of registration, or $400, up front.
Other states have experimented with a Mileage-Based User Fee (MBUF) to make up for anticipated declines in gasoline tax revenue. Read more about those efforts in
this story in
InTransition
.
Photo by Ed Murray