[RahulNagaraj]

According to media reports, Greg Abbott, Governor of Texas, USA, has signed a new bill that requires EV owners to pay an initial $400 when registering their new vehicles. This is further followed by a $200 annual fee every subsequent year to renew their vehicle's registration. The new rule is scheduled to come into effect from September 1, 2023.



The new rule is said to be applicable only to vehicles powered by a pure-electric powertrain. It doesn't affect owners of hybrids or plug-in hybrid vehicles, who will continue to pay the $0.20 per gallon tax on petrol. The proceeds collected from EVs and per gallon tax will go to funding Texas' roads.

Reports state that with over 2,00,000 EVs on the road in Texas and around 30,000 added this year alone, the new fee is expected to raise around $38 million by the year's end. The gas tax, though, is expected to raise $3.8 billion in revenue in Texas by 2024.

However, people driving ICE-powered cars in Texas, pay an average of $130 per year in gas taxes. Hence, there have been many advocates and critics who took issue with EV owners having to pay annual registration fees and that the amount was too high. Despite this, the Texas legislative house has approved the bill, making it an official policy.

Source: CarScoops

Link to Team-BHP news

[shankar.balan]

Texas is an oil rich state. What with the rigs out in the Gulf of Mexico and fracking in the great plains and prairies and all. Why would they even bother to promote EV’s? The oil lobby is strong there so EV’s will not get priority as they do in other states like California.

Personally Im good with this. Am sick of EVs being touted as ‘clean’ and ‘sustainable’ and all when they actually aren’t. ( Deep environmentally damaging mining to make those batteries. Thermal power to-charge them. No clear safe method of battery disposal at the end of life etc etc etc.)

[ferrarirules]

Originally Posted by RahulNagaraj

According to media reports, Greg Abbott, Governor of Texas, USA, has signed a new bill that requires EV owners to pay an initial $400 when registering their new vehicles. This is further followed by a $200 annual fee every subsequent year to renew their vehicle's registration. The new rule is scheduled to come into effect from September 1, 2023.

A few things to observe:

1. Texas is a very pro ICE vehicles state as it is the largest oil producing state in United States (1.7 million barrel were produced in 2021). This doesn't come as a surprise that they want to tax EV vehicles.
2. ICE vehicles are a huge source of tax revenue for governments across the world. Reduction in ICE cars will mean reduction in that revenue and the tax revenue on electricity is not as much as fuel.

So with countries having high EV adoption, governments will come up with unique ways of plugging this revenue outflow.

[CrackedHead]

Think this is out of line? Imagine paying an additional $70 each year to register a mild hybrid in some counties within Washington state while also paying the $ 0.49 tax on every gallon of fuel.

[extreme_torque]

Originally Posted by shankar.balan

Personally Im good with this. Am sick of EVs being touted as ‘clean’ and ‘sustainable’ and all when they actually aren’t. ( Deep environmentally damaging mining to make those batteries. Thermal power to-charge them. No clear safe method of battery disposal at the end of life etc etc etc.)

Well to be honest, most people buying EV's are not buying them because they want to be environment friendly - some of them definitely are but most arent. Its the other attributes which are more compelling - low running costs, no ongoing maintenance or servicing cost, performance, silent, can be charged at home and if you got solar, literally driving for free, performance - that it does not pollute is an added bonus and not the only factor.

If the world was so environmentally conscious, Nissan Leaf would have been the best selling car ever but its not. Tesla Model 3 and Model Y are - go figure.

[V.Narayan]

Yawn!!! What more to expect from a State owned by the big oil corporations. That too a State in the nation that has refuted the Paris Climate Accord and is the largest polluter on planet earth. These are long term signs of a culture in retrograde.

[RahulNagaraj]

According to media reports, starting September 1st, EV buyers in the state of Texas, USA will have to shell out an additional $200 every year.

The state lawmakers passed 'Senate Bill 505' earlier this year, as per which, an additional $200 fee will have to be paid either when registering a new EV or renewing the registration. The $200 collected from EV owners will go towards the funds that cover road construction and repairs across the state of Texas. Reports also state that those purchasing a new EV will be mandated to pay 2 years of registration or $400 upfront.



The $200 fee for EVs is an alternative to the gasoline fee paid by ICE-powered vehicle owners. The Texas Department of Transport stated that the gasoline tax is the primary funding source for the State Highway Fund. Electric vehicles don't pay those taxes as they don't use gasoline, however, they do use the roads. Reports also stated that while EVs make up just a small portion of cars in Texas, the number is expected to increase exponentially in the future. The agencies called the $200 fee the "most straightforward remedy".

With more and more electric vehicles on the roads, there were also earlier reports suggesting a new road-usage system, which makes car owners pay for every mile driven, irrespective of owning an ICE vehicle or an EV.

Source: TexasTribune

Link to Team-BHP news

[nidhikapoor]

In India the revenue from petrol/diesel is huge, so they will do something like this soon enough. If EVs really make up a large percentage they will lose a huge amount of revenue.

[speedmiester]

Originally Posted by nidhikapoor

In India the revenue from petrol/diesel is huge, so they will do something like this soon enough. If EVs really make up a large percentage they will lose a huge amount of revenue.

Unlike US, India imports most of it's oil. So a larger EV ownership will help in reducing oil imports.

[nidhikapoor]

Originally Posted by speedmiester

Unlike US, India imports most of it's oil. So a larger EV ownership will help in reducing oil imports.

Yes, but the taxes that the govt loses will be enormous

[A M]

Originally Posted by nidhikapoor

In India the revenue from petrol/diesel is huge, so they will do something like this soon enough. If EVs really make up a large percentage they will lose a huge amount of revenue.

We already pay a huge amount in road tax and tolls that EVs also pay, however the govt may want to increase the percentage.

[SKC-auto]

So many threads on the same topic.


https://www.team-bhp.com/forum/inter...uent-year.html (USA: Registering an EV in Texas gets expensive; $400 upfront & $200 every subsequent year)

https://www.team-bhp.com/forum/elect...velopment.html (USA: EV owners to pay up to $ 400 annually to support vehicle infrastructure development)

Originally Posted by nidhikapoor

Yes, but the taxes that the govt loses will be enormous

I believe the amount of money India saves from paying oil rich countries ~$200billion/year will do wonders in Indian economy, no need to directly collect taxes, govt already has a cut in your savings and gst on your consumption.

[alpha1]

Originally Posted by SKC-auto

I believe the amount of money India saves from paying oil rich countries ~$200billion/year will do wonders in Indian economy, no need to directly collect taxes, govt already has a cut in your savings and gst on your consumption.

Not so straightforward.
Today, the Indian public pays from their personal coffers to the rest of the world to buy petrol/diesel/LPG. How? Because the public pays the the oil companies (IOCL, BPCL, HPCL) which in turn pay to crude oil trading & production companies which are based from out of India. Indian govts (central and state) earns money by imposing customs and excise.

Now lets imagine if Indian public stops buying petrol/diesel/LPG. It will not pay anything to IOCL/BPCL/HPCL in turn they will pay nothing to crude oil traders. Which means Indian govts will not be able to earn anything out from the Indian public.

So what will the public do with this extra money that they have - most likely buy something else like Holidays, White goods, Services.
Yes most likely this would increase the veolicty of money WITHIN India thus perhaps improving the local economic conditions but India govt's revenues will surely fall (compare the percent of tax and duties in petroleum products vs any other goods or services).

[SKC-auto]

Originally Posted by alpha1

So what will the public do with this extra money that they have - most likely buy something else like Holidays, White goods, Services.
Yes most likely this would increase the veolicty of money WITHIN India thus perhaps improving the local economic conditions but India govt's revenues will surely fall (compare the percent of tax and duties in petroleum products vs any other goods or services).

My back of Napkin calculation elsewhere shows that crude oil prices at 43₹/litre(83$/barrel), if we add 10-15₹/litre for shipping, refining(some quantity lost during refining), transporting to the pump, so it costs 53-58₹/litre, govt and other agencies earning ₹43-₹48/ litre(₹101/ litre in Karnataka).

If $200billion in Indian economy creates even additional 20lakh jobs, it's a win for Indian govt. Whatever we save or spend one day all the money finds it's way to govt coffers unless it leaves India. So, the most important job now the govt has to concentrate is building batteries, electronics and Renewable energy equipment in India.

It's not easy to quantify the benefits compared to direct taxes which govt losses, if there are any intelligent people in the govt they will not tax heavily on electricity.