New Bill Proposed Targeting EVs with Higher Fees

[Siromnom]

Texas legislature at it again...

Owning an electric car in Texas could cost more next year

"Owners of electric and hybrid vehicles in Texas would face higher fees every year under a proposal that would help shore up the state’s road fund, which relies on a decreasing amount of gas taxes.

Electric vehicles would be hit with an additional $200 registration and annual renewal fee, while hybrids, which use a combination of gasoline and electric power, would be taxed an additional $100 for registration and renewal, according to a proposal from state Rep. Ken King, a Panhandle Republican."

Contact your state reps!

 

[Rockster]

Thanks, I will. I can’t buy a Tesla here in Texas but they’re sure not hesitating to tax them here.

Normal gasoline tax in Texas is $0.20/gallon, which means this would tax me for 1,000 gallons of gas per car per year. Uh, no. Not without a fight, you’re not.

 

[Hydrocarbon302]

While I understand the need to fund road works, this is the wrong way to do it.

A flat fee of $200 per year is crazy. The gas tax makes sense because it’s proportional to the amount of driving/vehicle weight/ and road wear.

A mileage related tax for EVs with a gvrw multiplier would be much more fair.
For instance 0.25 cents per mile with x1 for under 5k and 2x over 5k.

A M3 driven 8000 miles would cost an additional $20 per year that would be the same revenue as an ICE car getting 80mpg.

Edit:

The bill has failed a few times to get affirmative votes to get out of committee which is the first step to pass legislation.

Texas Legislature Online - 86(R) Actions for HB 1971

As you can see it’s been brought up a couple times and never got over the first hurdle.

Call up Mr King and tell him you’ve had it with tax and spend rinos. That’ll make him happy...

 

[SSedan]

Make sure the well off maintain their tax loophole.

 

[Rockster]

I don’t mind paying my fair share but taxing me the equivalent of the tax on 2,000 gallons for our two EVs is insane. My Model 3 has been driven 12,000 miles per year in the past 2.5 years and my S has been driven an average of 20,000 miles per year for the past five and a half years. That’s nowhere near a lost tax revenue of $400 per year between the two of them, considering that the state tax on a gallon of gas is $0.20.

Texas reads my odometer every year at inspection time. Determine a suitable rate per mile for a passenger sedan and charge me that each year. Simple. Effective. Fair. Reasonable.

 

[EL0NTRK]

Somebody needs to generate an email template so we can blast them with our opposition.

 

[SSedan]

Federal gas tax is $.184. nearly doubling the actual gas tax, yes TX is getting all this but they get kickbacks from the $.184 so if you want an honest conversation which most of you don't use the $.384 number and redo the calculation.
Then remember most of you want progressive taxes. Very few EVs even used are cheap beaters for HS students and minimum wage earners so just chalk the rest of the fee to the progressive tax code you want for everyone else..........

I know you all think the progressive tax code should start ramping up above whatever your income is, but if you are buying even a used Tesla you are doing well.

 

[Siromnom]

I know you all think the progressive tax code should start ramping up above whatever your income is, but if you are buying even a used Tesla you are doing well.

But this is a tax on all EVs and hybrids that seems excessive vs. ICE cars. Yes, many Tesla owners are likely financially comfortable, but not all. As with any car (EV or ICE), it's value should not be a reliable indicator of someone's wealth or financial situation. Many people, including some Tesla owners, make stupid car purchases...

I agree with others above...we definitely should pay our share towards road maintenance and what not, but charging us a higher rate is ridiculous.

 

[Uncle Paul]

Most studies show that automobiles do little wear and tear or damage to our highways. Most all damage caused by heavy trucks. That is where most of the revenue should be coming from.
A little Tesla/Leaf/Prius running down the road does not wear them out.

Roads were developed to increase commerce. Original intent was for the taxes on that increased commerce would more than pay for the roads. Greedy governments want to tax the commerce + tax the truckers that damage + plus charge tolls + tax the little cars.

 

[Rockster]

Somebody needs to generate an email template so we can blast them with our opposition.

Dear [representative],

I read with great concern the proposal by Representative King that electric and hybrid vehicles in the state of Texas be assessed an additional $200 per year and $100 per year fee, respectively, under the guise of recouping lost gasoline taxes.

While it’s true that gasoline tax revenue has declined 7% from the 2019 to the 2020 fiscal year, Representative King seems intent upon blaming this decline on the very small percentage of electric vehicles on the Texas highways, conveniently overlooking the impact of the global pandemic that has kept many Texans at home for most of 2020.

Perhaps Representative King utilizes one thousand gallons of gasoline for each of his vehicles as he commutes between west Texas and Austin; however, his assertion that today’s electric vehicle displaces that much gasoline tax revenue borders on absurdity. Attempting to recoup the state’s shortfall with a tax equivalent to a thousand gallons of gasoline per year is misguided and onerous.

If the Texas legislature wants to assess additional taxes on electric and hybrid vehicles in order to recoup displaced gasoline tax revenue, Representative King’s heavy-handed approach is not the answer. A more equitable solution would utilize my vehicle’s odometer reading, already part of the annual inspection, coupled with a fair, per-mile, fee that reflects not only the miles driven, but also reflects the very small amount of wear and tear that today’s typical passenger vehicle exerts on Texas roads.

Sincerely,

 

[Rockster]

I'm hoping, too, that this bill will be lost in the chaos of a slew of bills being introduced in advance of the 2021 legislative session. Perhaps, like others have failed to do, this one will never make it out of committee either.

 

[ItsNotAboutTheMoney]

Federal gas tax is $.184. nearly doubling the actual gas tax, yes TX is getting all this but they get kickbacks from the $.184 so if you want an honest conversation which most of you don't use the $.384 number and redo the calculation.

Absolutely agree. People often forget to include the Federal tax.

Then remember most of you want progressive taxes. Very few EVs even used are cheap beaters for HS students and minimum wage earners so just chalk the rest of the fee to the progressive tax code you want for everyone else..........

I know you all think the progressive tax code should start ramping up above whatever your income is, but if you are buying even a used Tesla you are doing well.

If roads are a public good, then they should be paid for by income taxes.
If roads are a service, then they should be paid based on use.

This is neither. It's at best lazy and reactive, and at worst hostile politicking.

 

[TexasEV]

This appears to be the same bill that this representative introduced last session. It did get a committee hearing and several of us testified against it. I don’t recall now if the committee ever voted on it, it’s probably in the archive here somewhere, but it never got to the floor.

 

[Lloyd]

California started this with exactly the same annual tax.