Texas Implements Annual Registration Fee for EV Owners to Make Up for Lost Gas Taxes

Texas Governor Greg Abbott signed a new law that will require electric vehicle (EV) owners to pay an annual fee of $200, on top of a $400 registration fee, starting from September 1, 2023. The new law exempts mopeds, motorcycles, and other non-car EVs. The reason behind the law is that EV drivers don’t buy gas, which is the primary way that most states, including Texas, amass funds for road construction, maintenance, and other driving-related infrastructure. However, compared to what gas drivers contribute, Texas’s EV fees seem a little out of whack.