Electric car owners in Texas must pay $200 a year or the state will miss out on gas taxes | Car

At issue is “Senate Bill 505,” which requires EV owners to pay the fee when they register an EV or renew their registration. The amount is imposed because, according to the government, EV drivers do not contribute fairly to a fund that can be used to build new roads and carry out repairs, according to the Texas Tribune.

Texas agencies estimated in a 2020 report that the state loses an average of $200 a year in taxes when a gas-powered car is replaced by an electric model. The government calls the compensation “the simplest” solution. The costs will be especially high for people who buy a new electric vehicle and have to pay two years in advance.

Gasoline taxes go to the State Highway Fund. However, owners of electric vehicles do not pay these taxes because they do not use gasoline. Nevertheless, EV drivers do use the roads. And while electric vehicles currently make up a small share of cars in the conservative state of Texas, that share is expected to grow rapidly.

The extra cost item is the subject of discussion. A number of environmental parties believed that the state should not charge anything. “We urgently need to get more electric vehicles on the road,” said Luke Metzger, director of Environment Texas. “Any higher compensation could create an additional barrier for Texans, especially middle-to-low-income Texans.”

In some European countries, the growth in the number of electric cars sold is leveling off. According to experts, this is mainly due to the fact that governments are phasing out subsidies and other support measures for electric driving in many countries. According to them, consumers are still not prepared enough to opt for electric cars solely on the basis of the environment.