EV owners in Kentucky will have to pay two new taxes in 2024

If you have an electric vehicle (EV) in Kentucky, you are now subject to pay two new state taxes starting January 2024.

From January 1, 2024, car owners will have to pay registration tax and charging taxes at public stations.

The new House Bill 360 passed in the 2023 Kentucky General Assembly imposes these two taxes on owners of electric vehicles and gasoline-electric hybrid vehicles.

According to the information, the new annual ownership fee includes $120 for electric vehicles, $60 for hybrids, and $60 for electric motorcycles.

These funds will be added to the Road Fund, which is responsible for road construction, maintenance, engineering, planning and research, and administrative management.

Kentucky Transportation Cabinet (KYTC) said that the new tax will help to ensure that EV owners are contributing as much as a gas or diesel-powered vehicle driver.

Charging Tax:

Under this new addition, EV owners will have to pay an increased 3 cents per kilowatt hour of electricity when they use a charging station.

If there’s a free charging station, the owner of that station will be subjected to pay the fee under the 2022 law that imposed this tax.

In terms of numbers, Kentucky has over 9,000 registered electric vehicles, including motorcycles and there are over 60,000 hybrids in the state.

How to Pay?

The tax information will be posted to Kentuckians via postcard by the Kentucky Transportation Cabinet (KYTC).

You can pay the registration tax online at EVHV.ky.gov or annually at your county clerk’s office during the renewal of your vehicle registration.

Meanwhile, the tax on charging should be included in the price you pay at a charging station similar to taxes on gasoline.

(source – Kentucky Transportation)