Texas Lawmakers pushing $200 annual fee for EVs to recoup lost gas tax revenue

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Texas Lawmakers pushing $200 annual fee for EVs to recoup lost gas tax revenue
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Texas lawmakers want EV owners to pay $200 annual fee to recoup lost gas tax revenue

For someone driving 15,000 miles annually, the amount paid in gas taxes can vary wildly based on the fuel efficiency of their vehicle. Someone driving a midsize or large SUV that gets 15 miles per gallon is paying $200 in state excise taxes, the same as the proposed EV fee, while someone driving a small sedan or compact that gets 35 mpg is paying about $85 in fuel taxes.

“We think $100 is the right amount,” Cyrus Reed, conservation director for the Lone Star Chapter of the Sierra Club, told lawmakers last week, noting the environmental group “very much supports the concept EV drivers should pay a fee.” The new fee, which would be $400 for the first year because new cars are registered for two years initially, was reached after analysis by several Texas agencies, including state police that oversee driver licensing, the department of motor vehicles and the Texas Public Utility Commission, which oversees residential electricity.The calculation includes lost revenue based on federal money that come back to the state from the nation’s 18.4-cent tax on each gallon of gasoline. Combined, the 38.

While the excise tax on gasoline does that somewhat — the more you drive the more fuel you buy — proponents say a per-mile fee, paid annually with a vehicle registration, could directly tie costs to use of the roads by cars and trucks.

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