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Texas EV Tax

564 Views 10 Replies 8 Participants Last post by  crazy08
Looks like my state will soon have an EV tax to make up revenue that is being lost by EV drivers. Though this new tax will be much more than current ICE vehicle taxes. How fair is that. Here's the article from Carscoops:

In a landslide decision, the Texas House approved a $200 annual fee for owners of electric vehicles. Now, the bill will be handed to Governor Greg Abbott for final approval before being passed into law.

The bill, which passed 145-0, looks to replace the gas tax the drivers of conventional vehicles already pay. Money raised from the gas tax helps pay for roads and other infrastructure, making it an important pool of money for Texas, reports The Dallas Morning News.

However, while most agree that an annual fee for EV drivers is fair, critics say that $200 is too high. A Consumer Reports study found that the owner of new internal combustion vehicles in Texas pay an average of just $71 per year.

My current ICE Silverado pays around $126 per year on fuel. Current tax on fuel is .20 per gallon.
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IMO this is on-brand for Texas. Texas doesn't want to give EV adopters "freebies", because EVs are often seen as a toy for the rich. Heck, Texas continues to make it tough for Tesla to sell there direct to consumer even though Elon wears a cowboy hat and built a huge manufacturing facility there.

But consider that EVs weigh significantly more than an equivalent ICE vehicle in the same price class. So they could be doing more damage to roadways and driving a higher per-vehicle cost.
Of course, something to consider is that the state, at last check, was still giving those who bought an EV a $2500 rebate. So that should cover the first 12 years of the EV fee. And it makes those who Abbott caters to happy because they aren't aware of the rebate.
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It’s 1/10th the cost Mary thinks you should spend on subscriptions for your truck.
My current ICE Silverado pays around $126 per year on fuel. Current tax on fuel is .20 per gallon.
Did you forget a zero on your yearly fuel amount?
Did you forget a zero on your yearly fuel amount?
He probably meant that is what he pays in Gas Tax for his Silverado.
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Did you forget a zero on your yearly fuel amount?
Sorry, I was talking about the tax amount not the entire fuel cost for the year.
Of course, something to consider is that the state, at last check, was still giving those who bought an EV a $2500 rebate. So that should cover the first 12 years of the EV fee. And it makes those who Abbott caters to happy because they aren't aware of the rebate.
Does Texas Have Tax Credits for Buying New EVs?
Texas does not currently have any incentive programs for EVs, besides the incentives offered by the federal government. The state did have a rebate of up to $2,500 available through the Texas Emissions Reduction Program (TERP), but the program only ran through January 7, 2023.
Oregon already has a voluntary program in place (called OReGO) for lost gas tax revenue. Owners of EVs, Hybrids and other types of alternative fueled vehicles pay 1.9 cents per mile. Oregon already is heading the way of California, and has said it will ban the sales of new ICE vehicles by 2035, so I would imagine that OReGO will become mandatory for owners of EVs in the future. For more info, visit How it works | MyOReGO
Texas spends one dollar on roads for every four dollars Calif spends and IMHO Texas roads are better.
The tax is a bargain. Fair enough.
I've crossed lots of state lines in my time, I'd rank Texas as one of the better states for road quality.
Downtown roads are pretty shit no matter where you go though.
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