The state of Texas has levied an annual registration charge on all electric vehicle owners. As a result, EV owners in Texas are charged a $200 annual fee which is the highest of all states except Georgia. This fee is claimed to be justified as EV owners depend on public infrastructure to travel.
State lawmakers are imposing annual fees on EV owners. They argue that electric vehicle owners depend on public infrastructure to travel, which justifies the annual fee.
Texas recently joined over a dozen other states, including Georgia, Ohio, and Michigan, in levying this tax. Only Georgia and Texas have charged a high registration fee of $200.
Whereas Colorado has the lowest fee of $50 per year and other states also kept it under $200. In March end, the Texas Senate passed SB 505 and this week the State House cleared a similar bill.
It was then sent to Governor Greg Abbott for approval. As per the latest version of the bill there is a $200 yearly registration fee for EVs. It should be deposited to the credit of the state highway fund. Slow neighborhood electric vehicles along with motorcycles, autocycles, and mopeds are exceptions here.
Luke Metzger, director at Environment Texas, spoke against the bill to a local media outlet KRLD, â€œIt will make it harder for Texans to afford these clean vehicles which are so critical to reducing air pollution in Texas.â€ He argued that $200 is too much for registration fees.
Prices of electric cars are still too high, and every person cannot afford them. In September 2022, the average price for an electric vehicle was $65,291 and more depending on the brand.
On the contrary, gas vehicles during the same time were around $48,094. There is around a 26% difference in their prices due to which Americans find it difficult to switch.
EV owners in Texas are charged a $200 annual fee and this puts non-EV owners in a difficult situation to decide whether to switch or not.