Texas bill would increase electric, hybrid vehicle fees

aanaaa One Texas state legislator is trying for the third time in as many sessions to raise road revenue via electric and hybrid vehicles.

Rep. Ken King, R-Hemphill, has filed a bill for consideration during the upcoming regular session that would impose an additional fee for the registration and renewed registration of electric and hybrid vehicles.

The bill, HB820, would collect an additional fee of $200 for electric vehicles and $100 for vehicles that use a combination of fuel and electric power, or hybrid vehicles.

Collecting the additional fees is estimated to raise $280 million during the 2024-25 biennium, according to a fiscal note.

Support for fees

Advocates say that electric vehicle owners essentially receive a tax break by not paying the 20-cent state fuel excise tax. Taxes they do pay do not go into the road fund.

They add that fuel tax revenues cannot keep pace with vehicle use and rising road construction costs. Additionally, supporters say that the increasing popularity of more fuel-efficient and electric cars and trucks will only widen the gap.

Third try a charm?

King has pursued nearly identical efforts during the past two sessions, but neither advanced from committee.

This year’s version would deposit most of the revenue raised – 90% – into the state highway fund. Money in the fund is limited to road and bridge work.

In an effort to gain support, King added a provision in the 2023 version to put 10% of revenue raised into an electric vehicle battery disposal account to reimburse costs by the state.

The bill awaits assignment to committee for the regular session opens on Jan. 10.

Fees elsewhere

There are 31 states that impose a special registration fee for plug-in vehicles, according to the National Conference of State Legislatures. Of those, 18 states also assess a fee on plug-in hybrid vehicles.

Fees range from about $50 annually for plug-in electric vehicles in Colorado, Hawaii, and South Dakota to $225 yearly for plug-in electric vehicles in Washington. LL

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