Starting September 1, Texas will begin charging electric vehicle drivers an additional annual fee of $200. This move, announced earlier this year, comes as a response to the increasing shift towards electric vehicles and the corresponding decrease in gasoline tax revenues, which have traditionally funded road construction and repairs.
This new legislation, brought into effect by Senate Bill 505, mandates the fee be paid during vehicle registration or renewal. The rationale behind this fee is that EV drivers, who do not consume gasoline, have been contributing less to the State Highway Fund, a crucial resource for maintaining and developing Texas’ road infrastructure.
The new law stipulates that EV owners must pay this fee upfront for two years of registration, amounting to $400 for new electric vehicle purchases. This decision was influenced by a 2020 report by Texas agencies, which calculated an average loss of $200 per year in federal and state gasoline tax dollars for each electric vehicle replacing a gas-fueled one.