Smiley face

Texas Electric Car Tax Law Signed In By Gov. Greg Abbott

May 18, 2023 – Gov. Greg Abbott has signed a legislative proposal into law Saturday requiring new electric vehicle owners to pay $400 to register their vehicles, in addition to other standard registration fees. Current owners would pay $200 a year when renewing their registration. The proposal, SB 505, was passed by the Texas Senate at the end of March and The house in late April.

The new fee, which will take effect September 1st, would not impact people who own hybrid vehicles. They still purchase fuel and pay gas taxes. This Bill also will not affect owners of electric motorcycles, mopeds and autocycles, or neighborhood electric vehicles that have a maximum speed of 35 miles per hour.

Lawmakers have sought ways to make up for the lack of gasoline tax payments by electric vehicle drivers. Every person who drives a gas-fueled vehicle pay a 20-cent per gallon tax when filling up at the pump. This gas tax regularly generates upwards of $3 billon annually, with fiscal year 2018 generating $3.7 billion.

Several states throughout the United States have incorporated the $100 or more fee for electric vehicles to help make up for lost gas taxes.

No word yet from Musk on the tax, who was busy earlier this week comparing George Soros to an X-Men villain.

Author: Ethan Klein

Share This Post On