States have taxed motorists at the pump for more than a century. However, as electric cars become more powerful, what happens when people completely stop refueling?
State lawmakers are increasingly imposing an annual fee on electric vehicle owners, arguing they must 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, after more than a dozen others, including Georgia, Michigan and Ohio.
The Texas Senate passed SB 505 at the end of March. This week, the state assembly approved a similar bill, sending it to Gov. Greg Abbott’s office. The latest version of the bill sets an annual registration fee of $200 for electric vehicles, with exceptions made specifically for “neighborhood electric vehicles,” as well as motorized bicycles, scooters, and motorcycles. The bill states that the resulting tolls “shall be deposited into the State Highway Fund Trust”.
Although Texas isn’t alone in moving forward with such a bill, its $200 fee is so high it only matches Georgia. Colorado is the state with the lowest electric vehicle fees (except for states that don’t have fees), at $50 per year.
Speaking against the bill in a statement to local media outlet KRLD, Texas Environment Director Luke Metzger said the $200 fee is punitive and “will make it difficult for Texans to afford these clean vehicles that are so critical to reducing air pollution in Texas.”
Electric vehicle prices are still out of the reach of many Americans. In September 2022, electric vehicles averaged $65,291, compared to $48,094 for Cox Automotive’s fuel users.