Electric vehicle owners in Texas must pay $200 annually or the state will lose their gas taxes car

At issue is Senate Bill 505, which would require EV owners to pay fees when registering an EV or renewing their registration. The amount was imposed because, according to the government, drivers of electric vehicles do not contribute fairly to money that could be used to build new roads and make repairs, according to the Texas Tribune.

Texas agencies estimated in a 2020 report that the state loses an average of $200 annually in taxes when a gas-powered vehicle is replaced by an electric model. The government describes compensation as “the simplest solution”. The costs will be especially high for people who buy a new electric car and have to pay two years in advance.

Gasoline taxes go to the state highway fund. However, the owners of electric cars do not pay these taxes because they do not use gasoline. However, drivers of electric vehicles use the roads. While electric vehicles currently make up a small share of cars in conservative Texas, that share is expected to grow rapidly.

The additional cost component is the subject of discussion. A number of environmental parties believe that the state should not charge anything. “We desperately need to get more electric vehicles on the road,” said Luke Metzger, Texas environmental manager. “Any higher compensation could create an additional barrier for Texans, especially those with middle-to-low incomes.”

In some European countries, growth in the number of electric vehicles sold has begun to level off. According to experts, this is mainly due to the fact that governments are phasing out subsidies and other support measures for electric driving in many countries. According to them, consumers are still not willing enough to choose electric vehicles based solely on the environment.