New taxes could add big roadblock in purchasing an EV

Starting January 1, Kentucky will add $120 to the yearly registration fee for electric vehicles. On top of that, the state will add a 3-cent tax on community EV charging. This will be an additional burden and disincentive for people to choose EVs just as we should be making the switch to help curb climate change.

The intent of lawmakers in Frankfort seemed to be to create a system for this new technology that supports the road fund and is roughly equivalent to gas and diesel vehicles. But it amounts to double taxation on chargers. And it treats all charging systems the same, even though they are not.

Not all EV chargers are the same

This means places like coffee shops and churches that choose to put in EV charging as an amenity will not just have to pay the normal taxes everyone else does on the electricity they use. Many (as most of the fee-free community chargers installed are grandfathered in) will also need to pay an additional tax for the amount of electricity “dispensed” to folks that are frequenting their establishment or going to their religious services or programs.

This is unfair for EV owners and cities, organizations and businesses with public chargers. Legislators are looking for ways to help pay for road maintenance, and that is understandable, but the minuscule amount they would get from taxing these slower fee-free chargers wouldn’t be worth the time and effort. And it puts a big roadblock in the way of locals considering purchasing an EV.

With this proposed 3-cent tax, EVs would be paying road tax at a rate almost four times what gas and diesel drivers are paying. That’s because Kentucky’s gas tax is 28 cents, and an equivalent amount of energy for an EV car would be taxed at 99 cents. To our representatives’ credit, they realized they needed more time to get a better understanding of the matter. After all, cities have installed chargers as an incentive for drivers to stop and enjoy their shops and restaurants. It’s seen as a way to bring in commerce and promote interesting and historic areas and gain needed revenue.

Of course people with garages, or even driveways, have an easier time owning an EV. They can either use a regular 110-volt plug to charge their cars or have a Level 2 charger installed in their garage or driveway. They can plug their EV in at night and wake up to a full battery in the morning. People living in apartments, condos or houses with only on-street parking typically have a harder time.

Fee-free chargers encourage EV travel

But the fee-free chargers help. I helped install them for the EV advocacy group Evolve KY, along with Kitty Adams of Adopt a Charger in California, and they’re now in 64 community locations, including Bernheim Forest, a Frankfort Avenue Metro parking lot, a couple of YMCAs and several churches.

The benefits of EVs are many. They’re cheaper to fuel and maintain, more economical to drive and fun. Perhaps most importantly, they create no tailpipe emissions. That is a huge boon for health, particularly in areas disproportionally affected by pollution. In fact, studies have shown that cradle to grave, EVs are on average 50% cleaner than gas or diesel vehicles. That is huge.

And, with Kentucky benefitting from the building of battery plants and employing more people than ever in the EV industry, we should be looking for every way to incentivize EV ownership. Putting a tax on fee-free community chargers literally won’t add up to any kind of significant additional revenue and collecting it will also have its challenges. Instead, we need a vision for a cleaner, more sustainable future where EV ownership is encouraged for everyone.

EDITOR 502-582-4642 • MIRBYJONES@GANNETT.COM

800-866-2211 • LOUISVILLECOURIERJOURNAL@COURIER-JOURNAL.COM

PROVIDED BY YUM! YUM! Brands partnered with its local gas and electric utility to host an electric vehicle charging station for employees at its Louisville campus.