COLLEGE STATION, Texas — For over two years, Angie Galindo has been enjoying being the owner of a Tesla Electric car.
“I use it for running errands basically around town — very short trips for the most part,” Galindo said.
Her business partner Ram Galindo drives one too. After finding out about a new Texas Law adding an additional cost to electric vehicles, he said it’s a lot cheaper in the long run than paying for gas.
“I’m sure I’ve saved a lot more than the $200 in taxes that I’ll be paying now,” Ram Galindo said.
Senate Bill 505 will require EV owners to pay a $200 yearly fee that will contribute to the State Highway Fund. After a letter in the mail, Angie Galindo said it was a bit of a surprise.
“When I can fit [the new tax] into my budget [I will. Right now, I have] all the other [bills] that are going [on] like the electricity.”
“Funding from the EV registration fee is expected to proportionately offset potential losses in motor fuel tax revenue. Based on the comptroller’s estimates, the state highway fund is anticipated to increase by more than $79 million in FY 2024 with the new fee," said Bob Colwell with TxDOT.
While the state will be recouping the lost funds from owners like Galindo, he said it’s something to start planning for.
“When I don’t buy gas, I don’t pay for the taxes to keep up with the roads, so I think it’s a fair trade.”
House Bill 505 takes effect on September 1st.
Texans who purchase a new electric vehicle must pay $400 for the initial two-year registration period.
The additional fees do not apply to hybrid vehicles.