You opinion on TX Senate Bill 505

[Boselka]

For those of you with upcoming vehicle registration renewals I was interested in your opinions on TX Senate Bill 505 that passed this year. In short for those that have not heard of this bill it is a new fee imposed on Electric Vehicles that add $400 to the registration fee of new vehicle registrations and $200 to the renewal of vehicle registrations (in essence we now have to pay $200/yr extra for driving an EV). This fee goes directly to the Texas Highways Fund and it was passed to “make up for the lost revenue from electric vehicles that don’t use fuel and thus don’t pay the Gas Tax the state has of $0.20 per gallon on gasoline sold in the state.

In my opinion I am okay with paying my share of road usage however the $200 seems a bit steep compared to what ICE vehicle owners would pay. Looking at the math:

• 20¢ / Gallon
• $200 buys 1,000 Gallons
  • 2023 Ford Eacape Hybrid - 39 MPG
    • Would have to drive 39,000 miles in a year to be equal
  • 2023 Ford Edge - 23 MPG
    • Would have to drive 23,000 miles in a year to be equal

We have put 28,000 miles on our Mach-E in the last 2 years, this means we are paying based on my calculations $100 - $150 MORE per year than a comparable ICE vehicle that we may have purchased. AND that is not taking into account that about 9,000 of those miles have been out of state road trips!

I know the flat fee is designed to be easier to manage (these numbers would look different for an F-150 lightning) but the alternative that would be fair would be some sort of mileage based tax that would track your mileage. Which would you prefer? Flat Fee per year? OR some sort of Mileage based fee that tracks your mileage driven?

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[Triggerhappy007]

I agree with you, $200 is steep. $100-$150 would be more fair. I bought my 23 Premium on 10/25 and my dealer didn't charge the $400 for EV registration. I guess that evens out the lojack and tint for $1000.

 

[Space_Pony]

It's going up to $221 in Indiana. It's getting hard to save money with an EV.

 

[RosemarieS.]

The roads around here are in terrible shape due to the gravel and cement trucks and 18 wheelers hauling building supplies and dirt back and forth. I had to drive on Ronald Reagan in Leander recently and there were no white lines anywhere on the road, a 4 lane, 55-65 mph highway.
The roads we drive on aren't maintained by the State. We have voted for bonds issued by the local city and county governments for roads. This excess registration fee has NO logical basis and is probably politically motivated.
But thanks for posting your excellent analysis!

 

[Bob K.]

The fee is unfairly high, of course. I would blame it on the fact that EV owners are generally not the target base for conservative politicians, but the bill was passed by both chambers unanimously. I guess we're just a small group of owners without much political power now. And, of course, politicians love "fees" because then opponents can't say they voted for tax increases.

 

[MacherAWD]

I would say vote with your feet and leave Texas.

 

[AKgrampy]

I guess if you think about it EV weigh more than ICE vehicles so cause more wear and tear for a comparable sized vehicle. That being said it does seem high and I hope I can get my permanent sticker (senior) here in Alaska before we add that cost to the annual registration.

 

[MacherAWD]

I guess if you think about it EV weigh more than ICE vehicles so cause more wear and tear for a comparable sized vehicle. That being said it does seem high and I hope I can get my permanent sticker (senior) here in Alaska before we add that cost to the annual registration.

Did politicians pose a special gas tax dedicated to dealing with health issues from pollution.. smog... no, this only became a thing to target EVs. Tire wear is another oil sponsored argument.

 

[AKgrampy]

Did politicians pose a special gas tax dedicated to dealing with health issues from pollution.. smog... no, this only became a thing to target EVs. Tire wear is another oil sponsored argument.

I am talking road wear. Not saying it is why they raised the fee but EV’s do cause increased road wear and tear.

 

[Mach-Lee]

I am talking road wear. Not saying it is why they raised the fee but EV’s do cause increased road wear and tear.

That is a myth, the weight of an EV is nothing compared to an 80,000 lb semi. Heavy duty trucks do by far most of the damage to the roads. The Mach-E weighs about the same as a 1/2 ton pickup, do those get taxed extra in Texas for damaging the roads? IDTS or there would be a second Texas Revolution...

 

[timbop]

It's going up to $221 in Indiana. It's getting hard to save money with an EV.

I guess if you think about it EV weigh more than ICE vehicles so cause more wear and tear for a comparable sized vehicle. That being said it does seem high and I hope I can get my permanent sticker (senior) here in Alaska before we add that cost to the annual registration.

Assuming an average of 12,000 miles a year and 25 MPG, an ICE would buy 480 gallons of gas in a year. According to the texas comptroller (here), Texas charges 20 cents per gallon and the feds add another 18.4 cents. So, the taxes on 480 gallons would come out to $184.32, so the $200 isn't really that bad. However, since the feds aren't getting a slice of the registration revenue Texas is making double the rate off of EV drivers - so from that perspective it's exorbitant.

From what I can find online Indiana charges 34 cents a gallon, so at $210 Indiana is only making $50 more off of EV drivers

 

[Mach-Lee]

Wisconsin just pulled this crap too. Raised the EV surcharge an additional $75 this year to $175 on top of the other fees. That means I'll have to pay about $275 total next year.

$175 in gas tax would buy 566 gallons of gas, which takes you about 17,000 miles in a 30 MPG gas car. I don't drive nearly that much, so it's an unfair tax for me.

 

[Boselka]

I agree with you, $200 is steep. $100-$150 would be more fair. I bought my 23 Premium on 10/25 and my dealer didn't charge the $400 for EV registration. I guess that evens out the lojack and tint for $1000.

LOL, maybe.
Also I had read that original versions of the bill did have a $100 fee for lighter vehicles and $200 for larger which would make more sense.

 

[Boselka]

The fee is unfairly high, of course. I would blame it on the fact that EV owners are generally not the target base for conservative politicians, but the bill was passed by both chambers unanimously. I guess we're just a small group of owners without much political power now. And, of course, politicians love "fees" because then opponents can't say they voted for tax increases.

True it was a surprise with Tesla moving here though.

 

[Boselka]

I would say vote with your feet and leave Texas.

LOL some friends have said the same thing, my only counter is the city I live in is one of the largest cities in the country that is 99% powered by renewable energy, and we have one of the best solar programs in the country. Also if all the EV lovers leave the state there would be no one to counter the EV hate hahaha.

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