Texas Signs Measure To Make Electric Vehicles “Pay Their Fair Share” For Infrastructure

May 18, 2023

In addition to the billions of taxpayer dollars subsidizing electric vehicles (EVs), these car owners are often free riders who are exempted from contributing to funding our nation’s infrastructure. Last week, Texas Governor Governor Greg Abbott signed into law Senate Bill 505, which will help change that by making EV owners pay a fee to register their cars. 

Texas KVUE ABC reports, 

On Saturday, Gov. Greg Abbott signed an electric vehicle fee into law. Senate Bill 505 requires electric vehicle owners to pay $400 to register a new electric vehicle, on top of other fees. Renewing registration will cost $200. The new fee does not apply to electric motorcycles, mopeds or autocycles.

Gas car owners currently pay this fee in a 20-cent-per-gallon gas tax, while EV owners are exempt for funding the same highways they access.

“The Dallas Morning News report states that the new electric vehicle fee will funnel at least $38 million in new money to the state highway fund, while gas and diesel taxes will generate an estimated $3.8 billion in revenue for Texas in 2024.”

We applaud Texas for leading the way with this legislation by restoring fairness, and we urge other states to follow suit. It’s time to end this special interest loophole that only leads to higher taxes and inadequate funding for vital infrastructure projects.