Electric Vehicle (EV) Charging Station Tax

Beginning on January 1, 2024, EV charging station owners and lessees must pay a combined excise tax and surtax fee of $0.03 per kilowatt hour of electricity used to charge EVs. The tax will be added to the selling price charged by the station operator. If the station operator provides free electricity, they will be responsible for paying the tax on stations installed after June 30, 2022. The station operator must report total kilowatt hours distributed, tax amount collected, and provide payment to the state monthly. Beginning December 1, 2024, the Kentucky Department of Revenue must compare the tax rate to the most current quarterly National Highway Construction Cost Index 2.0 (NHCCI 2.0) annually. Beginning on January 1, 2025, the tax rate must be adjusted annually to match the NHCCI 2.0 change, up to a maximum 5% annual increase or decrease.

(Reference Kentucky Revised Statutes 186.010 and 189.282)