Last week, the Texas State Senate Transportation Chaired by Robert Nichols of Jacksonville, TX met to consider adding a fee during vehicle registration for alternative fuel vehicles (AFV’s). There are numerous bills filed due to some concerns raised that AFV’s do not fairly contribute to road repairs since they pay no motor fuels tax (aka road use tax).
Advocates for the tax say as alternatively fueled vehicles increase, motor fuels tax revenue will decrease, further eroding the ability of the State Highway Fund to meet the operation, maintenance, and new capacity needs of the transportation system.
SB 1076 by Sen. Kirk Watson of Austin was left pending in committee. Watson's bill would add a fee to AFV’s based on taxes paid by a similar vehicle operated by gasoline or diesel, but with a 15%-25% discount.
SB 1216 by Sen. Charles Schwertner of Georgetown also was left pending in committee and it would add a pre-paid fee based on miles driven with no discount. Sen. Schwertner also has another bill, SB 1653, filed, but not heard in committee, that calls for a study to be conducted by the Texas Department of Motor Vehicles. The study would analyze the feasibility and the desire to add a new fee for AFV’s, cost of implementing this program, the collection of data on mileage driven by AFV and if there is even a correlation between decreased motor fuel tax revenue and decreasing highway fund?
Clean air advocates testifying on the proposed alternative fuel vehicle tax advocated for pursuing a study during the interim and revisiting the tax during the next legislative session in 2021.
