After September 1st in Texas, You Will Have to Pay an Extra $200 Per Year to Drive this Vehicle
Everything is bigger in Texas, that includes the big 'ol trucks.
If you drive a truck in Texas, don't worry, you can still drive a big giant truck down the highways. However, if you drive an electric truck or any electric car, get ready to pay an extra fee for your electric vehicle.
Texas Senate Bill 505 passed and was signed off by Governor Abbott and the bill becomes law effective on September 1, 2023. This new Texas law will require all electric vehicles to have an additional $200 fee when the vehicle registration is renewed each year.
What is considered an electric vehicle?
According to the bill an electric vehicle is a motor vehicle that has a gross weight of 10,000 pounds or less and uses electricity as its only source of motor power.
According to the new law, not only will electric vehicle owners have the $200 fee per year, but they will also be required to pay an extra $400 fee when they register a new electric vehicle.
Why are these extra fees on electric vehicles being imposed?
The Texas Department of Motor Vehicles conducted a study on alternatively fueled vehicles. The study found that with the increased number of electric vehicles on Texas Highways, there was a loss in motor fuel tax revenue. Since electric vehicles do not use fuel, the revenue from the motor fuel taxes dropped. According to the Texas Comptroller, the state’s motor fuels tax revenue is used to build and maintain public roadways. These additional fees from electric vehicles will make up for the loss of the motor fuel taxes and keep funding for our roadways.
Where will the State of Texas use these fees?
The fees that the State of Texas collects for electric vehicles will go into the State Highway Fund.
These fees have been implemented to make sure that all vehicles that are registered in the State of Texas are doing their part to make sure our public roads are maintained without imposing additional taxes on taxpayers.
Those vehicles that use fuel pay taxes on that fuel and those taxes maintain roadways. These new fees on electric vehicles will go to maintain roadways. One could say this is a win/win for Texas roadways.