After waiting almost four years to get his Rivian, Skyler Williams was finally able to enjoy driving his electric vehicle (EV) around Central Texas. However, Williams and other EV owners may soon face a $200 registration fee, following the Senate's recent passing of a bill to tax EV owners. This fee would be charged annually and $400 at the time of purchase. The reason for the tax is to fund the state's highway infrastructure, which is currently funded by the gas tax paid by gas-powered vehicle owners. Since EVs don't consume gas, they don't contribute to the state's highway fund, which results in losses.
Sen. Nichols proposed the $200 fee based on a study by several state agencies. The study showed that gas cars pay an average of $100 annually in state gas tax and $95 in federal gas tax, while EVs should be taxed half as much. However, Williams thinks the proposed fee is too high and could be tough on some people as it's paid in a lump sum annually.
Sen. Eckhardt, who owns an EV herself, believes the $200 registration fee is appropriate and necessary as EVs become more popular. She describes the highway infrastructure as a "state asset" that needs to be funded to keep the economy moving. While she believes a vehicle miles traveled methodology would be more appropriate in the future, the proposed flat-dollar figure is an acceptable contribution by EV owners to the state highway system.
Williams agrees that a tax on EVs is needed to maintain Texas roads but worries that the proposed fee is too high and could dissuade some people from buying an EV. He believes that part of the appeal of owning an EV is the savings from not having to pay for fuel and less maintenance costs.
The bill now heads to the House, where it will be heard in the transportation committee.