gradual abolition of gasoline taxes would lead to two possible outcomes. The first is that electric vehicles gradually take over, as the price of electricity drops and more people switch to using them. The second outcome is that the number of drivers using gasoline-powered vehicles decreases greatly, as they become impractical or unaffordable without a gas tax subsidy. In either case, the disappearance of gasoline taxes would be an important step in reducing our reliance on oil
The rising popularity of electric vehicles has led some state lawmakers to propose annual fees on owners of these cars in order to recoup the costs associated with public infrastructure used to access these vehicles. Texas is on track to become the latest state to levy such a tax, following more than a dozen others, including Georgia, Michigan and Ohio. The fees are typically assessed based on the size and value of an EV owner’s vehicle, and vary from state-to-state. While proponents argue that this fee provides an incentive for consumers to switch from gasoline-powered cars to electric ones, opponents argue that it is an unconstitutional tax levied without congressionally mandated funding mechanisms.
This week, the Texas House of Representatives passed SB 505, which requires residents to pay a $200 registration fee annually for electric vehicles. The money collected from this fee will go towards improvements to roads and highways in the state. Neighboring states like Oklahoma and Arizona have already passed similar bills, so it seems that Texas is catching up on this technology trend.
In states with high fees, like Texas, buyers are incentivized to consider electric vehicles. Electric vehicles can be cheaper to operate than gasoline or diesel cars, and they produce zero emissions. Many places have started implementing these fees in order to encourage people to switch over to electric vehicles and help reduce pollution.
Environmental groups are opposed to Senate Bill 221, which would impose a $200 fee on the sale of electric vehicles in Texas. The fee is intended to help offset the cost of checking and maintaining these vehicles, but critics argue that it is punitive and will make it harder for Texans to afford these clean vehicles which are so critical to reducing air pollution in Texas.
Despite the fact that EVs are still expensive, there is no doubt that they are slowly becoming more accessible to the average American. In September 2022, the average price for EVs sat at $65,291, while gas guzzlers averaged $48,094. Even though this is still a large difference, it illustrates just how far electric cars have come in recent years.
