States have taxed motorists at the pump for more than a century. However, as electric cars gain traction, what happens when people stop refueling altogether?
State lawmakers are increasingly imposing annual fees on EV owners, arguing they should pay because they still rely on public infrastructure to get around. Texas is on track to become the latest state to impose such a tax, following more than a dozen moreincluding Georgia, Michigan and Ohio.
The Texas Senate approved SB 505 at the end of March. This week, the state House of Representatives approved a similar bill and sent it to the desk of Gov. Greg Abbott. The latest version of the bill sets a $200 annual registration fee for electric vehicles, with exceptions for slow-moving vehicles.neighborhood electric vehicles”, as well as cars, mopeds and motorcycles. The bill establishes that the resulting fees “should be deposited in favor of the state highway fund.”
Although Texas is certainly not alone in going ahead with such a bill, its $200 fee is on the high end, matching only Georgia. Colorado is the state with the lowest EV rate (excluding states that don’t have rates), at $50 per year.
Speaking against the bill in a statement to local news outlet KRLD, Environment Texas Director Luke Metzger argued that the $200 fee is punitive and “will make it harder for Texans to pay for these clean vehicles that are so critical to reducing air pollution in Texas.”
Electric car prices are still out of reach for many Americans. In September 2022, the median price for electric vehicles stood at $65,291, versus $48,094 for gasoline consumers, per cox automotive.
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