High Registration Fees Hamper Adoption of Electric Vehicles
A Consumer Reports study finds that a proposal in Texas won’t do much to increase highway funding in the state
Texas lawmakers are considering changes that would assign an extra registration fee for electric cars and hybrid vehicles to help offset the amount they say the owners are not paying in fuel taxes every year. An analysis conducted by Consumer Reports finds that the proposed fee—which would be at least $200 per year for EV drivers—would be nearly three times as much as what the average new gasoline vehicle buyer would pay in gas taxes but would do little to increase the state’s highway funding.
More broadly, the CR study finds that flat annual fees, while seemingly straightforward, don’t take into account how much someone drives and can be burdensome for low-income drivers as the full fee must be paid all at once. Such fees, if set at levels much higher than what a typical driver would pay in gas taxes, could also discourage someone from buying an EV. Consumer Reports believes that greater EV adoption is a key step in the journey toward lower carbon dioxide emissions.