EV owners in Texas face a $200 annual fee

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By Webdesk

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States have taxed motorists at the pump for more than a century. But if electric cars gain ground, what happens when people stop refueling altogether?

State lawmakers are increasingly imposing annual fees on EV owners, arguing that they should pay because they still rely on public infrastructure to get around. Texas is on track to become the last state to levy such a tax, following more than a dozen others, including Georgia, Michigan and Ohio.

The Texas Senate passed SB 505 in late March. This week, the state House approved a similar bill and forwarded it to Governor Greg Abbott’s office. The latest version of the bill includes a $200 annual registration fee for electric vehicles, with exceptions for low-speed “neighborhood electric vehicles,” as well as cars, mopeds, and motorcycles. The bill states that the resulting fees “must be deposited into the credit of the State Highway Fund.”

While Texas is certainly not alone in moving forward with such a bill, the $200 fee is on the high side, matching only Georgia. Colorado is the state with the lowest EV fee (excluding states that have no fees), at $50 per year.

Luke Metzger, director of Environment Texas, spoke against the bill in a statement to local media outlet KRLD, arguing that the $200 fee is a penalty and “will make it harder for Texans to afford these clean vehicles, which are so crucial are for reducing air pollution in Texas.”

Electric cars are still priced out of reach for many Americans. In September 2022, the average price for EVs was $65,291, versus $48,094 for gas guzzlers, according to Cox Automotive.

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