Electric vehicles may be better for the environment but, in Texas, they're going to cost their owners more to own after September 1st.

Texas lawmakers recently passed Senate Bill 505 which will raise registration fees for electric vehicles by $200.00.

The reason is highway construction and repair, funded in part by gasoline taxes, is being impacted by electric vehicles. They don't use gas so they're not paying taxes.

The Texas Tribune reported that:

Texas agencies estimated in a 2020 report that the state lost an average of $200 per year in federal and state gasoline tax dollars when an electric vehicle replaced a gas-fueled one.

The Texas Tribune also added:

Gasoline taxes go to the State Highway Fund, which the Texas Department of Transportation calls its “primary funding source.” Electric vehicle drivers don’t pay those taxes, though, because they don’t use gasoline.

It's a double whammy for Texans buying new electric vehicles as they will pay 2 years worth of registration fees initially, totaling $400.00.

Volkswagen ID.3 Electric Car Production In Dresden
Getty Images

What I'm wondering is, why can't they just slap a tax on the electricity like they did with the gas?  That seems more fair.

I get what they're trying to do but it doesn't seem right to hit all the electric vehicle drivers the same way. We don't all use the same amount of gas so we're only taxed on what we purchase.

Mind you, there's already a tax in place when topping off electric vehicles. So, the overlords wouldn't really be adding a tax, just raising it.

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