Part of the fee one pays when fueling with gasoline or diesel is a tax on maintaining infrastructure. As electric vehicles get to skip the pump, some states are doing what they can to recapture that lost revenue. Across the nation, at least 32 different states charge EV owners additional fees for registering their vehicles.
Another state, Texas, is in the process of adding just such a fee. The bill, SB505, requires EV owners to pay $400 the first time they register the vehicle and then an additional $200 each year. It’s passed both the Senate and the House and awaits Governor Greg Abbott’s John Hancock.
“As more of these vehicles drive on Texas roads, there are concerns about how they contribute to the funding of the roads which they use,” Republican state Sen. Robert Nichols said. Should it become law, the bill will go into effect in September of this year.
More: U.S. Fuel Taxes Among Lowest In Developed Countries
Should that happen, it’ll be one of the most expensive regulations of its kind across the USA. Alabama matches Texas with a $200 annual fee for EV owners while Washington charges $150 per year and North Carolina caps its annual registration charge at $130.
Some states are matching their EV registration fees to the consumer price index or another inflation-related metric says CNET. Those states are California, Mississippi, Utah, Michigan, and Indiana though others could follow their lead.
A number of states are considering a different system altogether that charges drivers based on miles traveled. Dubbed Vehicle Miles Traveled fees or Mileage-Based User Fees, they would potentially replace gas taxes and EV registration fees altogether. They aim to more closely link transportation taxes to those who use the roads most.
Whatever ends up happening one thing is certain: taxes aren’t going away anytime soon. Whether they’re charged at the pump or the DMV, they’re coming for our wallets.
