​​Electric Vehicle (EV) Power Tax

As part of legislation enacted during the 2022 session (HB 8 Section 29 and HB 659 Section 3), public electric vehicle charging stations are subject to a $0.03 per kilowatt hour excise tax with an additional $0.03 per kilowatt hour surtax on power distributed by electric charging stations located on state property. The rates go into effect for power distributed on or after January 1, 2024.​

​According to the provisions of KRS 138.477, the tax is still due even if there is no charge for the power distributed from the charging station unless the charging station was installed prior to 07/01/2022. ​

​The tax is due from the person that owns or leases the EV charging station.​

The sales tax is due on the gross receipts received from use of the EV charging stations. Separately stated EV charging station excise taxes collected from the customer are not part of gross receipts subject to sales tax. See KRS 139.010(17)(c)3.

​No, federal entities are not subject to this tax.  However, if a third party owns or leases the charging station for use on federal property, the third party is still liable for the tax.​

​Yes, these governmental entities are responsible for reporting and paying the tax per kilowatt hour of electricity distributed. Also, the additional $0.03 per kilowatt hour surtax is due from charging stations located on state property.​

​No, unless the EV charging station is available to general public vehicular traffic, the kilowatt hours distributed through the stations are not subject to the excise taxes. Examples of restricted access may include special card access, code access, locked gates limiting access, other barriers, etc.​

​Unless the charging stations provided by businesses have restricted access that limits the use of the charging stations from the general public, these charging stations are subject to the tax.  ​

​Restricted access charging stations to tenants only are considered private charging stations (see question #7). However, if the charging stations located at multi-family housing units are accessible to general public vehicular traffic, the electricity distributed is taxable even though the stations are designated for residential use.   ​

​It is the responsibility of the charging station owner/operator to calculate the tax based upon kilowatt hours distributed and to maintain records on how the calculations were made. After market EV charging station meters are available at retail from various sources.  

NOTE:  Charging stations installed before 07/01/2022 and providing free charging services are not subject to the tax.

Please contact the Department of Revenue by email at KRC.WEBResponseMotorFuels@ky.gov or by phone at 502-564-3853 if there are additional questions on the calculation of kilowatt hours distributed.