Texas bill that introduces $200 fee on EVs to fund roads just passed

[ProbeGT]

Texas legislature just passed the bill. $200 annual fee on all EVs to fund road construction and maintenance. Goes into effect on Sep 1, 2023 if the governor signs it and I'm sure he will. This has been long overdue in some form in order to level the playing field with with ICE car owners who contribute via hefty gas taxes. The only question is how high the fee should be. Some argue that $200 is excessive based on avg EV miles driven.

Full disclosure: I own 3 ICE cars and have had Tesla Cybertruck on order since 2019. On one hand, I don't like the prospect of paying the annual fee but at the same time, EV owners must contribute to road maintenance in some way. Roads don't fund themselves. I've been considering canceling my Cybertruck order for some time (empty promises, etc), this is another incentive to do it.

Thoughts?

 

[WylieCoyote]

Making up for lost gas tax revenue. Totally saw it coming, surprised it isn't more.

 

[mk378]

Texas gas tax is a rather low 20 cents per gallon, so $200 is the same tax as buying 1000 gallons of gas over the year, which is enough to drive 20,000 miles at 20 mpg.

 

[Tdbo]

Sounds logical to me.
We've had it in Ohio for the last couple of years.
$200. on an electric, $100. on a hybrid.
Why should they get a free pass, when those of us with ICE vehicles pay?
Consequences, and all that.

 

[ProbeGT]

Sounds logical to me.
We've had it in Ohio for the last couple of years.
$200. on an electric, $100. on a hybrid.
Why should they get a free pass, when those of us with ICE vehicles pay?
Consequences, and all that.

Wow, I didn't realize Ohio had already enacted a similar measure. Thanks for posting!

 

[Rand]

Texas gas tax is a rather low 20 cents per gallon, so $200 is the same tax as buying 1000 gallons of gas over the year, which is enough to drive 20,000 miles at 20 mpg.

Ohio is about double that. so 200 = 10000 miles?
38.5 on gas and 47 on diesel.

 

[skyactiv]

News flash, several states already impose an annual surcharge for EV's.

 

[Soft Cars]

Thoughts?

They'll never use the money to repair the roads.

 

[LDB]

I drive maybe 3k miles per year, 98% or so within a 3 mile radius of home on city streets. I'm at 2778 miles in 10.3 months since buying my car and have bought 86 gallons of gasoline. $17.20 in gas tax, about $20 once I get to a full year. So that fee would be 10 times as much for me. Not your typical user/driver though. I was fairly seriously considering a Bolt when I bought my Escape but lack of inventory, and an exceptional buyer experience at my Ford dealer, swung the deal. They probably need to figure in some sort of distance formula to make it a bit more equitable to what one would be paying if they had a gasoline vehicle.

 

[Eddie]

Not sure I agree with this philosophy. I'd rather see Texas up the liquor tax before this tax. JMO Ed

 

[RDY4WAR]

This was expected. When the state is losing gas tax revenue, they have to get their money somehow. Depending on how much you drive, the $200 is probably less than you would've paid in gas taxes.

 

[ProbeGT]

Texas gas tax is a rather low 20 cents per gallon, so $200 is the same tax as buying 1000 gallons of gas over the year, which is enough to drive 20,000 miles at 20 mpg.

The 20c gas tax does not include environmental fees, inspection fees, load fees, clean-up fees, LUST taxes, license taxes, and petroleum taxes - all of which are included in the "All taxes included" price at the pump.
Now, I have no idea what these fees amount to per gallon in TX, perhaps someone knows more?

They'll never use the money to repair the roads.

Yes they will. By law, the money will got into the State Highway Fund. It won't be enough to make every TX road into an Autobahn but it will help offset the shrinking gas tax revenue caused by EV adoption.

 

[MrHorspwer]

I thought taxes were bad?

I was also very intrigued by the number of specially taxed roads and specially taxed lanes when I visited such a free state like Texas.

 

[mk378]

environmental fees, inspection fees, load fees, clean-up fees, LUST taxes, license taxes,

Costs of doing business to a gas station, which of course are rolled into the retail price. Suppliers of electricity for electric cars have taxes and costs as well. These don't go to the highway fund.

petroleum taxes

There's something other than the 20 cents per gallon? In an oil state?

 

[brianl703]

Virginia does one better. They have an additional "highway use fee" for vehicles that are too fuel efficient. Not just EVs, but hybrids and presumably regular ICE vehicles too.

Not that the roads in Virginia have gotten any better with this additional funding.

 

[b_b]

I thought taxes were bad?

I was also very intrigued by the number of specially taxed roads and specially taxed lanes when I visited such a free state like Texas.

lol you're seriously not comparing Michigan roads to Texas. Michigan a high tax state has roads that are third world, mean while Texas with no state income tax has much better roads. better hurry i hear Whitmer is having a conference on CNN.

 

[ProbeGT]

I just read the full text of the bill SB505. It's very short, and has a few surprises.

1. It does not apply to mopeds, motorcycles, autocycles or neighborhood EVs.
2. Fee for "new EV" is $400, after that $200/year.
3. "electric vehicle" is defined as a motor vehicle that has a gross weight of 10,000 pounds or less and uses electricity as it only source of motor power

OK what does that mean? Does a hydrogen fuel-cell vehicle fit that definition? What about vehicles over 10,000 lbs?

 

[Trav]

Far too little, 1K for the new EV and $500 a year thereafter, bicycles that use a seperate bike lane $50 a year. Spread the going green pain around equally IMO.

 

[Wingo]

Makes sense, should be more really given the extra weight of these vehicles and the more damage they cause to roads.

 

[ProbeGT]

Far too little, 1K for the new EV and $500 a year thereafter, bicycles that use a seperate bike lane $50 a year. Spread the going green pain around equally IMO.

Green pain? What's green about it? Especially in Germany where they just shut down all emission-free nuclear plants in favor of restarting coal powered plants, the dirtiest form of energy known to man.