Car Tax: Texas to Charge Electric Car Owners 8 Times More than Gas Drivers

A new law mandates that Texans who purchase electric vehicles must pay $400 to register them, which is eight times the cost of gas-powered vehicles.
According to the rule, which goes into effect on September 1, residents who already own an EV must also pay a $200 registration charge.
The rule, which is estimated to generate roughly $38 million in income, is being implemented to make sure EV drivers contribute to the costs of maintaining the roads, which are generally covered by the state’s gasoline tax.
Texas previously provided an up to $2,500 tax credit for the purchase of electric vehicles, but the policy was only in effect from January of this year.
Currently, the only incentives available to EV owners in the state are federal ones, which offer $7,500 in tax credits to drivers who purchase specific models.
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New Texas Regulation on Electric Vehicle Registration Fees Draws Criticism

The new regulation has drawn criticism from some who claim it will deter consumers from buying eco-friendly cars and will ineffectively handle the state’s budget problems for roads. It is referred to as a punitive tax on individuals who choose to go electric by nonprofit organization Consumer Reports.
Tesla owner Robi Chapman said that charging electric vehicle owners based on how much they travel would be a more equitable method to make up for the lost gas tax revenue.
The registration cost also begs the question of whether Texans will pay more to own an electric vehicle than one that runs on gas.
Texas residents now have to pay an initial price of $350 for new EV drivers and an annual renewal fee increase of about $150. Standard vehicle registration fees in the state are roughly $50.
Electric vehicles can cost up to ten years to break even, making them significantly more expensive to purchase than their gas-powered equivalents.
According to Edmunds data, the average price of a new gas-powered automobile in May of this year was $47,892, while the price of a typical electric car was $65,381.
More States Raise Fees for Electric Vehicle Registration
Texas is not the only state to raise the cost of registering electric vehicles.
The National Conference of State Legislatures reports that 32 states have increased fees for EV drivers, with a large portion of the money going toward roadway funding.
The lowest fees are $50 in South Dakota and Hawaii, while the highest fees are $225 for citizens of Washington.
It follows Bank of America’s decision earlier this month to include advantages for owners of electric vehicles in its rewards program.
Along with its existing 3 percent cash back promotion for typical gas station transactions, the bank’s Customized Cash Rewards credit card will now also offer that promotion at EV charging stations.
According to a statement from the company, the number of transactions for electric vehicle charging on its cards increased by 44 percent just in the first half of this year.
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Source: Daily Mail