Texas Taxes

Texas Governor Greg Abbott signed a bill into law last Saturday that requires electric vehicle owners to pay a $400 registration fee. The fee is intended to ensure that electric vehicle owners pay their fair share toward highway costs, which are usually covered by a 20 cent-per-gallon gas tax paid by owners of gas-fueled and hybrid vehicles.

Some electric vehicle owners have expressed concerns that the fee could discourage people from buying electric cars. According to a report from the Dallas Morning News, Texas has nearly 200,000 electric vehicles in the state. More than 30,000 new electric vehicles have been added to the roads just this year.

Some experts have argued that the new law sends the message that Texas is "fully behind oil and gas." Others have said that the fee is a reasonable way to ensure that electric vehicle owners contribute to the maintenance of the state's roads. The new fee is set to go into effect on September 1, 2023.

Here are some additional details:

• The new fee does not apply to electric motorcycles, mopeds or autocycles.
• The average owner of a gas-fueled vehicle pays approximately $130 in state gas taxes per year.
• The new electric vehicle fee is set to generate at least $38 million in new revenue for the state highway fund.