Texas Will Bill EV Drivers $200 a Year
Photo by Ed Murray

Texas Will Bill EV Drivers $200 a Year

On Sept. 1, Texas will start charging electric vehicle (EV) drivers an additional fee of $200 each year—an amount comparable to what the state lost in federal and state gasoline tax dollars when an EV replaced a gas-fueled one, according to a 2020 report.

Earlier this year, state lawmakers passed Senate Bill 505, which requires EV owners to pay the fee when they register a vehicle or renew their registration, according to The Texas Tribune. It’s being imposed because lawmakers said EV drivers weren’t paying their fair share into a fund that helps cover road construction and repairs across Texas. The cost will be especially high for those who purchase a new EV and have to pay two years of registration, or $400, up front.

Other states have experimented with a Mileage-Based User Fee (MBUF) to make up for anticipated declines in gasoline tax revenue. Read more about those efforts in this story in InTransition.