Beginning July 1, 2026, covered charging stations would collect a per-kilowatt-hour tax, while electric-vehicle owners would pay new stated annual decal fees.
Electric-vehicle charging stations would collect a 3.5-cent-per-kilowatt-hour tax and display prices that include applicable taxes, starting July 1, 2026.
Annual decals would cost $100 for all-electric vehicles and $50 for plug-in hybrids, with the fees applying when the act takes effect.
Sales of alternative fuels covered by the fuel-tax rules would be exempt from the specified sales tax, while the separate fuel tax would still apply.
Charging stations would collect a license tax on electricity used to charge electric vehicles. The tax covers electricity sold or dispensed at a DC fast charging station for plug-in hybrid and all-electric vehicles. The tax rate would be 3.5 cents per kilowatt hour, except for electricity exempted under the referenced statute. Each charging station would need a meter, and sellers would need to show the price per kilowatt hour with applicable taxes. Dealers would collect and pay the tax, and fuel suppliers and other covered sellers would report and remit taxes under department rules. These provisions would apply beginning July 1, 2026.
The state would set annual decal fees at $100 for all-electric vehicles and $50 for plug-in hybrid vehicles. The fees apply to registered and licensed all-electric and plug-in hybrid vehicles that meet the act's definitions; motorcycles and multipurpose vehicles are excluded from the plug-in hybrid definition. Each vehicle must display the required annual decal. An all-electric vehicle uses only electric energy and can recharge from an external source. A plug-in hybrid uses at least two power sources, including one that can recharge from an external electricity source. The stated fees would apply beginning July 1, 2026.
Sales of alternative fuels taxed under the alternative-fuel tax article would be exempt from the specified sales tax. The exemption covers alternative fuels taxed under the listed fuel-tax statutes, including electricity sold or dispensed at DC fast charging stations. The fuel must be subject to the alternative-fuel tax article. The exemption applies to sales of the fuel and does not remove the separate license-tax collection rules. This provision would apply beginning July 1, 2026.
No hearings or votes scheduled.