Texas Governor Greg Abbott recently signed an electric vehicle tax into law.
The new bill, Senate Bill 505, requires $400 to register an electric vehicle along with other fees. Renewing registration will cost electric vehicle owners $200.
While the new tax will not apply to electric motorcycles, mopeds, or autocycles, the fee intends to ensure electric vehicle owners are paying highway costs that owners of gas-fueled vehicles pay for in a 20 cent-per-gallon gas tax.
Owners of gas-fueled vehicles pay an average of $130 in state gas taxes every year according to a report from the Dallas Morning News. This tax, plus the new electric vehicle tax are dedicated to the state highway fund.
With more than 30,000 new electric vehicles being added to the state roads this year, the new electric vehicle tax will generate approximately $38 million for the state highway fund, with gas and diesel to provide an estimated $3.8 billion in revenue for Texas in 2024.
The new electric vehicle tax goes into effect September 1, 2023.
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Source: KVUE
