18 May 2021

Texas wants to penalize owners of electric cars

Recently, Texas took a pretty harsh stance against owners of electric vehicles by proposing Senate Bill 1728, which would punish EV owners for simply owning an EV. That sounds cliche, but in essence, this is exactly what the bill is doing while being disguised as “fairness.” The claim was that EV owners need to pay their fair share and make up for fuel taxes that they don’t pay... The proposed fee was previously an additional $200 EV tax. That fee has now gone up... Added together, those numbers total $250 to $400+ in annual fees

Currently, EV owners in Texas are not allowed to take delivery of their vehicles from Tesla in the state — they have to either travel out of state or arrange a third party to ship their vehicles to them. For those who will be purchasing made-in-Texas Teslas, this also applies. Tesla will have to ship the made-in-Texas Teslas out of state, where either a third party will deliver to the customer at the customer’s expense or the customer has to travel to pick up their vehicle. Unfortunately, Texas isn’t the only state that is seemingly anti-EV. Many states have this problem.
More at CleanTechnica.


  1. Indiana has been doing this for years. It's actually cheaper to simply pay for gas for the year than pay the extra taxes for an electric, or even hybrid vehicle, by design.

  2. Pennsylvania is considering eliminating their gas tax.

    "In Pennsylvania, Gov. Tom Wolf (D) has proposed phasing out the gas tax as the main funding mechanism for the state’s highway fund, and he has established a commission to recommend options for replacing it with alternative revenue sources. In a statement, the governor called the current motor fuel tax burdensome, outdated, and unreliable."


    Most states get less than 50 percent of their funding for roads from user taxes (registration, licensing, excise tax on gas and tires, tolls, etc) The balance comes from other taxes, notably income and sales taxes.

    There is probably a VMT in your future...

  3. So this is typical of Texas BS but I do think there is missing context here. The gas tax is used to maintain the roads and EV's do use and wear out the roads with out contributing to their up keep. Now I think they should find away to, you know, actually encourage EVs while still funding the road maintenance. Using the gas tax to fund the roads, absent EVs, is kind of elegant. The people who drive a lot pay a lot. The people who drive heavy trucks pay more because they use more. The people who drive little pay less.

    Also, the you have to buy your Tesla out of state thing is because of a law saying car manufacturers may not sell cars directly but must instead sell via an independent dealer. Tesla does not have dealers, just direct sales. Ford, for example can sell their EV cars as normal through the dealerships, but also could not sell directly to consumers. This is kind of bogus but it is an old existing law, not directly aimed at Tesla. The idea is you have more competition and more jobs by having third party dealers.

    1. Thanks for the extra context! I was curious about the "out of state" Tesla thing.

    2. Using the gas tax to fund the roads, absent EVs, is kind of elegant.

      The solution is obvious, right? Tax the power that goes into EVs.

  4. We pay an extra $200/year for our EV registration in Ohio.

  5. Don't forget asphalt is cheap because it's a byproduct of making gasoline/diesel fuel.

  6. This is exactly why we can't have nice things. Too many Luddites getting in the way.

  7. This is not news. A lot of states are thinking about taxing electric vehicles to make up for the lost gas tax. I think it makes sense.

  8. At least 37 states, including Texas, offer various incentives for the purchase or lease of an alternative fuel vehicle. These are usually in the form of rebates or tax credits. In some states, the tax credit is as high as $5,000. Austin Energy (Texas) offers a plan allowing owners of EVAs unlimited charging of their vehicles for $4.17/month at more than 1,000 charging stations. Reliant Energy offers a savings plan for people who charge their vehicles at home.

    Check on your state's incentives here: https://afdc.energy.gov/laws/search

    Also, there is a federal tax credit of up to $7,500 for the purchase of an EVA vehicle. The credit is phased out in steps once a manufacturer sells 200,000 EVA vehicles. Tesla was the first to reach that mark, and I believe GM is the only other US maker to exceed that number to date. Ford's new F-150 EVA truck will likely put them over that number in the near future.

    More information:

    President Biden wants to extend the incentive.


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