Proposalwould refill state’s road fund by imposing higher fees on EVs, hybrids

Owners of electric and hybrid vehicles in Texaswould face higher fees every year under a proposal thatwould help shore up the state’s road fund, which relies on a decreasing amount of gas taxes.

Electric vehicles would be hit with an additional $200 registration and annual renewal fee, while hybrids, which use a combination of gasoline and electric power, would be taxed an additional $100 for registration and renewal, ac

cording to a proposal from state Rep. Ken King, a Panhandle Republican. King could not immediately be reached for comment.

Revenue from the proposed fees would go to the state highway fund, which the Texas Comptroller reported had $14.2 billion in revenue during 2019 and expects revenue of $14.6 billion in 2020.

If the bill passes, it would take effect Sept. 1, joining a majority of states that target electric vehicles for extra fees. In several states, those additional charges have climbed so high that electric-vehicle owners paymore than they would have paid in gas taxes if they drove gasoline-fueled vehicles, according to an analysis by the consumer advocacy publishing company Consumer Reports. In some cases, electric-vehicle owners pay four times more than they would have paid in gas taxes.

In Texas, drivers of gaspowered vehicles pay a state tax of 20 cents a gallon that supports the highway fund, which is used to maintain state roads. But Texas’ annual gas tax revenues have flattened and even declined as vehicles became more fuel efficient and electric vehicles and hybrids became more popular.

In fiscal year 2020, which ended in August, Texas collected $2.6 billion in gas tax revenue, 7 percent less than the $2.8 billion in fiscal year 2019.

Electric vehicles represented 1.8 percent of total U.S. vehicle sales in March 2019, up from 1.6 percent a year earlier, according to electric utility trade association Edison Electric Institute of Washington.

King, who represents a swath of the Panhandle from Oklahoma to New Mexico, also introduced a bill this week that would add a 1- cent tax to every kilowatt hour of energy generated by wind, solar, coal and nuclear power. Power generation from natural gas would be exempt.