Tesla Owners in Texas Campaign to Pay Fair Annual EV Fee

Texas Senate Bill 1728 (SB 1728) would levy a $200 electric vehicle (EV) fee, to make up for fuel taxes that support the state’s road and transportation infrastructures.

According to Tesla, however, the average gas car driver spends only about $100 per year in fuel taxes, effectively making the proposed EV tax double what gas car owners pay.

On Tuesday, Tesla shared a link on its website to reach out to Texas State Representatives to comment on the proposed annual EV tax (via Tesla Owners of Austin). On the page, which details a letter you can send to your representative, Tesla includes that Texas Tesla drivers are “happy to pay their fair share” towards Texas roads, but encouraging elected officials to “move to adjust what Texas Tesla and other EV drivers pay to $100.”

While the bill has yet to pass, other states and provinces around the world have passed annual EV taxes, though many argue that exempting zero-emission vehicles from fuel taxes could help incentivize mainstream EV adoption.

Earlier this month, Saskatchewan in Canada voted to impose a $150 (CAD) annual tax on EV owners, though the province saw major pushback from Canadian officials in other provinces.

In the United Kingdom, alternatively, Tesla lobbied the government to increase taxes on gas and diesel cars, expected to help pay for value-added tax exemptions on EVs by driving the price of traditional internal combustion engines (ICE) up, while driving the cost of EVs down.