autoevolution
 

Texas May Tax EV Drivers for Road Usage

Ford Mustang Mach-E 26 photos
Photo: Ford
2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information2021 Ford Mustang Mach-E Performance Edition pricing and ordering information
The crisis that shall not be named has exacerbated a problem that’s been lingering for years now. To make a long story short, Texas is attracting California-based companies, the state’s wealthiest people, and regular guys and gals because homes and rents in Texas are much cheaper.
Another plus point for the Lone Star State is the income tax (or lack thereof), which attracts workers and professionals from all walks of life. But as far as electric vehicles are concerned, Texas is very far behind the Golden State.

The Lone Star is truck land in every respect, partially because gas prices are lower than the U.S. average. That brings us to the federal excise tax on gasoline and diesel, which stands at 18.4 and 24.4 cents per gallon, respectively. The Highway Trust Fund receives money from the fuel tax to support road construction, maintenance, and mass transit, and EV owners may spend a few bucks to drive their cars as well, according to a state bill.

The Legislative Budget Board intends to amend the Transportation Code with Senate Bill 1728 to impose a road usage fee on alternatively-fueled vehicles. This bill requires EV owners to pay $190 to $240 yearly, at least $150 for driving more than 9,000 miles (14,484 kilometers) per year, as well as a $10 surcharge for a yet-to-be-formed charging infrastructure advisory council.

Let’s take a moment to calculate how many gallons of good ol’ gasoline an ICE driver would need to purchase in order to cover $400. We first take 40,000 cents, divide by 18.4 cents, and the result is very close to 2,174 gallons of fuel. An eight-cylinder Ford F-150 averages in the ballpark of 20 miles to the gallon (11.7 liters per 100 kilometers) on the combined cycle according to the Environmental Protection Agency, which means that an F-150 owner would have to cover 43,480 miles (69,975 kilometers) per year.

Paying taxes for the electricity needed to charge an EV is one thing, but those hard-earned bucks don’t go into the state's road infrastructure, which is why some form of taxation is necessary. On the other hand, punishing EV owners with disproportionate taxes will put the Lone Star State at a huge disadvantage against ZEV states such as California, Oregon, and Maine.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Mircea Panait
Mircea Panait profile photo

After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories