Texas electric vehicle owners are beginning to receive some unfavorable correspondence.
They will be required to pay the state an additional $200 per year beginning in September in order to register their eco-friendly cars and trucks. In addition, a new EV will cost $400 upfront if customers choose to purchase one.
Lowest petrol taxes in the nation
In order to make up for the lost petrol taxes due to the changeover to battery-powered vehicles, state lawmakers slapped a new price on EVs this spring. Supporters claim that it makes sure that each driver contributes fairly. However, consumer advocates claim that the cost is almost twice what the average driver would pay in taxes at the pump.
One of President Joe Biden’s signature climate measures will face new obstacles as a result of such actions, which have some EV supporters seething.
Texas has one of the lowest petrol taxes in the nation, and it hasn’t changed since 1991. Its new EV fees are currently some of the most expensive. Experts and supporters claim that’s no accident. Electric vehicle adoption is encountering speed bumps from increased charges on drivers using charging stations to restrictions on how automakers can sell EVs to registration fees that some have criticized as unfair.
Real and perceived barriers for consumers
Texas joins about 30 states that impose registration fees on EVs. About half the fees are punishingly high, according to research by Consumer Reports — including in some states where Democrats wield power.
“There are already real and perceived barriers for consumers,” said Dylan Jaff, a policy analyst on sustainability for Consumer Reports. “So making that burden more difficult — putting on these added layers of cost … for some consumers, it just makes them shy away from making that transition.”
Red-state opposition to the Biden administration’s intentions to increase EV ownership and reduce carbon pollution from transportation, the main source of emissions in the United States, is growing as a result of these subtle roadblocks. With the help of the Inflation Reduction Act and tough new EPA tailpipe pollution rules, Biden has established hefty subsidies for some electric automobiles. The market for electric vehicles in the United States is anticipated to quadruple in size this year from what it was in 2021.
However, a recent slump in EV sales has highlighted the market’s turbulence. According to experts, drivers are still sensitive to a variety of problems, from finding a charging station to being able to afford the higher upfront costs. This is true even though the economics of EVs continue to improve.
Right now, some conservative states are passing laws that make those concerns worse.
For instance, the low-income individuals who are least able to afford it may be severely hit by the new levies and taxes imposed by states like Texas.