The Texas House has unanimously passed a significant measure, voting in favor of a $200 yearly charge for electric vehicle (EV) owners. The bill will now be submitted to Governor Greg Abbott for his final approval, ultimately becoming law.
The objective of this bill, approved with a vote of 145-0, is to supplant the gas tax currently paid by conventional vehicle drivers. The revenue generated from the gas tax is instrumental in financing the state’s road infrastructure, making it a crucial funding source, as reported by The Dallas Morning News.
In 2015 alone, Texas accumulated a substantial $3.4 billion through this tax, which adds an extra 20 cents per gallon to the cost of gasoline and diesel. Consequently, it stands as the fourth-largest revenue stream for the state, which does not impose an annual income tax on individuals.
However, although many agree that levying an annual fee on EV drivers is equitable, critics contend that $200 is excessively high. A study by Consumer Reports reveals that the average annual payment for owners of new internal combustion vehicles in Texas is a mere $71.
Luke Metzger, the executive director of Environment Texas, represents one of these critics, asserting that the fee stipulated in the bill is exorbitant. He argues that it is unjust for EV drivers to bear such a significant burden, particularly when considering that the gas tax has remained unchanged since 1991 and should be revised.
Metzger stated, “If there is a $200 fee, it would be preposterous for the driver of a fuel-efficient Nissan LEAF to pay as much as the driver of a gas-guzzling Hummer. The Nissan LEAF provides considerable environmental benefits to the state of Texas, contributing to cleaner air and imposing less strain on the roads. However, both drivers would be subject to the same fee.”
Nevertheless, proponents of the bill contend that since the majority of EVs belong to the luxury segment, buyers are generally affluent and can comfortably afford the $200 annual registration fee for their vehicles.
While Metzger acknowledges that the fee will not “cripple the EV industry,” he warns that it might impede progress and hinder the transition towards cleaner transportation options.
