Texas new EV tax

[ChooseFreedom]

I know that's a rhetorical question, and you are 100% right, but there's an answer actually: because you. an make a crap ton of money. Being part of the energy transition has bigger long term upside than oil, no question. And solving hard problems is really fun. My favorite thing in the world (career wise) is to be part of a team of engineers and lab techs that create solutions to really tough challenges that no single individual could do alone. It can be hell for a while, but once you get through, it's the best sense of accomplishment you can get.

Just chugging along doing the same thing you've done for literally a century (more) is mind numbingly boring.

But changing entrenched technology and corporate culture is usually impossible. So yeah, gotta squeeze every drop of cash out of that goose before it dies. Would be better to pivot sooner, save the oil for things that don't burn it, or just leave it in the ground.

I wish there were politicians with your mindset!
They just take handouts, get elected, take more handouts, and kick the can down the line to the next generation. Because they know they can't actually fix the real problems, especially while still getting re-elected. No one wants to make the tough needed decisions because positive change will piss too many donors off.

 

[ThomasD]

I'm sure that soon the Federal Government will go with a mileage based tax for electric vehicles. It will still be cheaper than paying a combined fed and state tax on gas sales. The only difference is that when you travel through a different state and charge you won't pay any tax to charge. Unlike a gas car where no matter what state you travel to or through you end up paying that states gas tax and the federal gas tax.

 

[DayTrippin]

A good article.

Greg Abbott Signs Law Making EV Owners Pay for Their Gas-Free Cars

Starting September 1, registering an EV in Texas will cost $400 upfront and $200 every subsequent year. It's a lot more money than it should be.

gizmodo.com

 

[dbeiler]

A good article.

No, it isn't. Once again, the CR claim of "$71 is fair" is mentioned.
Let's remove our foil hats and do some simple math. We'll pretend the federal tax doesn't exist. We'll stick with Texas tax of $0.20.

Texas average annual mileage is 16,171 according to Average Miles Driven By State 2023 - Policygenius
$71 buys 355 gallons worth of gas tax (not including federal tax). 16,171 miles divided by 355 gallons is 45.5 miles per gallon.

Does the average Texas vehicle get 45 miles per gallon? It doesn't take a rocket scientist to figure out $71 a year is WELL below what the average ICE driver is paying in road tax. I mean, come on man............

 

[Wyomingtim]

No, it isn't. Once again, the CR claim of "$71 is fair" is mentioned.
Let's remove our foil hats and do some simple math. We'll pretend the federal tax doesn't exist. We'll stick with Texas tax of $0.20.

Texas average annual mileage is 16,171 according to Average Miles Driven By State 2023 - Policygenius
$71 buys 355 gallons worth of gas tax (not including federal tax). 16,171 miles divided by 355 gallons is 45.5 miles per gallon.

Does the average Texas vehicle get 45 miles per gallon? It doesn't take a rocket scientist to figure out $71 a year is WELL below what the average ICE driver is paying in road tax. I mean, come on man............

From the article:
The average Texas driver burned through ~55 million BTUs of motor gasoline in 2018, according to data from the U.S. Energy Information Administration. That’s equal to about 440 gallons of gas. At $0.20 per gallon, the standard car owner in Texas is paying just $88 per year in gas taxes—far less than the hundreds more EV drivers will now be throwing into the pot.

 

[mspohr]

I don't know how to feel about this. States need to make up the loss of gas tax to maintain roads somehow. Here in Washington State we talked about a similar fee (I think they added it? I forget).

Seems counterintuitive, since lots of states and the feds are offering incentives to buy, and then turning around and asking for fees to own them.

I did the math in Washington, and the amount we drive annually we are still spending about half or less per year vs gas tax on a car that gets 25/28 city/highway (about what we replaced with the Y).

Someone has to pay to fix the roads. Any better suggestions?

In Texas, fee is 2x or 3x gas tax

 

[OxBrew]

In Texas, fee is 2x or 3x gas tax

Read my next replies. I'll add to them: I know the gas tax pays for things besides roads, ok. 2. I bet the gas tax revenue is actually too low in Texas to fully fund everything it's supposed to pay for.

For road and infrastructure, gas tax should be eliminated and replaced with a weight x miles fee for everyone, with sliding scale based on income, so it's not a regressive tax. I know this last on may be controversial, but it's the not monstrous or cruel way to implement taxes/fees. I grew up poor, I know how hard it is to decide whether to buy food or put off the electricity bill for a third month.

 

[ItsNotAboutTheMoney]

For road and infrastructure, gas tax should be eliminated and replaced with a weight x miles fee for everyone, with sliding scale based on income, so it's not a regressive tax. I know this last on may be controversial, but it's the not monstrous or cruel way to implement taxes/fees. I grew up poor, I know how hard it is to decide whether to buy food or put off the electricity bill for a third month.

Transitionally. Otherwise NO!

Service: fee according to usage.
Public good: paid for by general taxation independent of use of the service.

If it's an essential service, you should adjust the incomes, not the fees.

 

[OxBrew]

Transitionally. Otherwise NO!

Service: fee according to usage.
Public good: paid for by general taxation independent of use of the service.

If it's an essential service, you should adjust the incomes, not the fees.

OK, that works too. Transitionally is fine.

 

[dbeiler]

From the article:
The average Texas driver burned through ~55 million BTUs of motor gasoline in 2018, according to data from the U.S. Energy Information Administration. That’s equal to about 440 gallons of gas.

So that would be 36.7 miles per gallon. Do you believe the average Texas driver is getting 36.7 miles per gallon?

At $0.20 per gallon, the standard car owner in Texas is paying just $88 per year in gas taxes—far less than the hundreds more EV drivers will now be throwing into the pot.

That is correct....... as long as we're pretending federal gas tax doesn't exist. Should the federal government directly charge each EV owner $80 a year?

 

[Wyomingtim]

So that would be 36.7 miles per gallon. Do you believe the average Texas driver is getting 36.7 miles per gallon?

That is correct....... as long as we're pretending federal gas tax doesn't exist. Should the federal government directly charge each EV owner $80 a year?

You're the one who said to ignore the federal gas tax. Why, I don't know.

According to the Texas Comptroller's office, the average driver in Texas spent $9.52 per month in Texas gas taxes (at $0.20/gallon) (2015 data). That would be $114 annually, which is substantially less than the $200 annual charge the state is now going to levy on EV drivers.

Texas ICE drivers also have to pay federal tax ($0.183/gallon for gas, $0.243 for diesel) on the fuel burned, which would bring the total tax bill to Texas ICE drivers to about $200 annually.

In terms of total tax paid, this new bill brings parity to EV and ICE drivers.
In terms of tax paid to the State of Texas, it is highly inequitable to EV owners.

If the federal government begins taxing EV drivers for their fair share of the maintenance costs of the highways, the total tax paid by Texas EV drivers will be greater than the burden placed on ICE drivers.

 

[CyberGus]

Some of the gas tax is used for non-roads. When roads need more money, they just take it from the general fund. It blends together, there’s no real “fairness” to it.

 

[tewest86]

$200 yearly is more than the average Texas driver pays at the pump.


The average Texas driver burned through ~55 million BTUs of motor gasoline in 2018, according to data from the U.S. Energy Information Administration. That’s equal to about 440 gallons of gas. At $0.20 per gallon, the standard car owner in Texas is paying just $88 per year in gas taxes—far less than the hundreds more EV drivers will now be throwing into the pot. A 2022 Consumer Reports analysis determined that a Texas driver’s gas tax contribution is even lower, at just $71.

 

[Wyomingtim]

$200 yearly is more than the average Texas driver pays at the pump.


The average Texas driver burned through ~55 million BTUs of motor gasoline in 2018, according to data from the U.S. Energy Information Administration. That’s equal to about 440 gallons of gas. At $0.20 per gallon, the standard car owner in Texas is paying just $88 per year in gas taxes—far less than the hundreds more EV drivers will now be throwing into the pot. A 2022 Consumer Reports analysis determined that a Texas driver’s gas tax contribution is even lower, at just $71.

Except that the average Texas driver pays $0.38 per gallon, not $0.20 per gallon. And that's for gas. It's $0.05 per gallon higher for diesel. Gotta include the federal tax.

 

[DayTrippin]

The problem with that thinking is that nothing excludes the Fed from slapping on an EV tax. Not to mention Texas isn't sharing the tax they collect with the feds. Straight up they are shafting us.

 

[TLLMRRJ]

That would require politicians to stop taking Big Oil $, and actually care about their constituents.
It's TX. They rely on oil. They'd be cutting off their own feet. They want to be independent, always have.
The TX elite owe their fortunes to oil. They'll hang on down to the very last drop before ever changing.
And this is from a state that is actually better set up than most states to use renewable energy. Tons of sun year round, lots of baron acreage ideal for solar farms and windmills. But they fight progress at every turn.
Why change the status quo when they're profiting so much? To hell with the future!

Stop watching CNN.

Texas is an energy state. Whatever energy you use, we are going to sell it to you for a massive profit so we can buy more pink Cadillacs with horns mounted on the hood. How long do you think it would take to reverse your brainwashing?

One State Generates Much, Much More Renewable Energy Than Any Other—and It’s Not California - Inside Climate News

A new batch of data about the country’s electricity generation shows the increasing dominance of one state as the clean energy leader. No, it’s not California. It’s Texas. This isn’t new. Texas has produced more gigawatt-hours of electricity from renewable sources than any other state for...

insideclimatenews.org

A new batch of data about the country’s electricity generation shows the increasing dominance of one state as the clean energy leader.

No, it’s not California.

It’s Texas.

This isn’t new. Texas has produced more gigawatt-hours of electricity from renewable sources than any other state for several years running, thanks largely to wind energy. Now, the state is expanding its lead by continuing to be the county’s leader in wind energy, by a mile, and quickly closing the gap on California on utility-scale solar power.

In 2022, Texas generated 136,118 gigawatt-hours from wind and utility-scale solar, most of it from wind. The runner-up was California with 52,927 gigawatt-hours, most of it from utility-scale solar, according to the Energy Information Administration.

 

[ChooseFreedom]

Stop watching CNN.

Texas is an energy state. Whatever energy you use, we are going to sell it to you for a massive profit so we can buy more pink Cadillacs with horns mounted on the hood. How long do you think it would take to reverse your brainwashing?

One State Generates Much, Much More Renewable Energy Than Any Other—and It’s Not California - Inside Climate News

A new batch of data about the country’s electricity generation shows the increasing dominance of one state as the clean energy leader. No, it’s not California. It’s Texas. This isn’t new. Texas has produced more gigawatt-hours of electricity from renewable sources than any other state for...

insideclimatenews.org

A new batch of data about the country’s electricity generation shows the increasing dominance of one state as the clean energy leader.

No, it’s not California.

It’s Texas.

This isn’t new. Texas has produced more gigawatt-hours of electricity from renewable sources than any other state for several years running, thanks largely to wind energy. Now, the state is expanding its lead by continuing to be the county’s leader in wind energy, by a mile, and quickly closing the gap on California on utility-scale solar power.

In 2022, Texas generated 136,118 gigawatt-hours from wind and utility-scale solar, most of it from wind. The runner-up was California with 52,927 gigawatt-hours, most of it from utility-scale solar, according to the Energy Information Administration.

I don't watch any "Infotainment" TV.
I never said they don't have any renewable energy. I simply said it's being under-utilized, which is also stated in that same article.
The legislators who take that Big Oil $ fight progress at every step.
And even as the county's leader in renewables, it still only accounts for 26% of their power. A good start, and actually not bad considering everything. That article also mentions that TX is way behind in small-scale solar. More houses need individual systems to offset the deficiencies.
But renewables aren't the 100% answer. The sun doesn't shine all the time, and the wind doesn't always blow.
The recent winter blackouts showed the massive weaknesses in their energy infrastructure, which is independent from the rest of the nation. TX has embraced the Bitcoin mining industry, which is greatly improving their grid flexibility. So I do think they're heading in the right direction. I was simply ranting about the broken government, all of them, not just TX.

Change is inevitable, but slow because those in power don't want to lose that power, and all real change has winners and losers.
You can either adapt and survive, or go extinct.

 

[Darmie]

Read my next replies. I'll add to them: I know the gas tax pays for things besides roads, ok. 2. I bet the gas tax revenue is actually too low in Texas to fully fund everything it's supposed to pay for.

For road and infrastructure, gas tax should be eliminated and replaced with a weight x miles fee for everyone, with sliding scale based on income, so it's not a regressive tax. I know this last on may be controversial, but it's the not monstrous or cruel way to implement taxes/fees. I grew up poor, I know how hard it is to decide whether to buy food or put off the electricity bill for a third month.

Tax on gas should only pay for roads and road upkeep. That tax paying for anything else falls under taxation without representation. I also think people that live in Austin should not pay for any gas tax for every road there seams like a Toll road.

 

[CyberGus]

That tax paying for anything else falls under taxation without representation.

That's not how taxation works.

 

[DayTrippin]

Tax on gas should only pay for roads and road upkeep. That tax paying for anything else falls under taxation without representation. I also think people that live in Austin should not pay for any gas tax for every road there seams like a Toll road.

We had representation all right, they just represented Big Oil better. They got the coal mine and we got the shaft per the song sung by Jerry Reed.