The cost of operating an electric vehicle in Texas will shortly increase. On May 13, Governor Greg Abbott authorized the implementation of increased costs for EV registration and ownership in the state (Bill 505).
Owners of electric cars will be required to spend $400 to register their vehicles under the proposed legislation.
Texas Imposes New Fees on Electric Vehicle Owners
EV drivers will then have to fork over an additional $200 a year after that. Both of those costs are additional to the regular annual registration renewal fees, which for the majority of passenger automobiles and trucks are $50.75 annually.
The law takes effect on September 1, 2023, and exempts mopeds, motorbikes, and other non-car EVs.
According to information from the National Conference of State Legislatures, there are currently specific registration costs for electric vehicles in at least 32 states.
In states like Colorado, Hawaii, and South Dakota, they range from $50 to $274 (beginning in 2028), while a recent Tennessee law increases them to $274.Note: Tennessee lawmakers first wanted to charge $300, but they reduced it in reaction to the opposition.
The justification for Lone Star State’s new law, like that of many other states that have enacted EV taxes, is that owners of electric vehicles do not purchase gasoline.
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Implications for Electric Vehicle Adoption
Most states, including Texas, primarily raise money for road building, maintenance, and other driving-related infrastructure through taxes at the gas pump.
A 2015 investigation by the nonprofit Canadian media organization The Discourse found that for every $1 a driver spends on commuting, society spends more than $9.
Through congestion, air and noise pollution, accident liability, and infrastructure. For the same number of kilometers driven, using the bus, biking, or walking all costs the government substantially less money.
As they are quieter and don’t produce air pollution directly, EVs may also have a little reduced public cost.
The initial expenditures of buying an electric automobile are already far greater than those of a gas vehicle.
This burden is increased by an unfair tax structure, which may discourage individuals from switching to EVs.
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