Kentucky Releases New Law that Will Tax Electric Cars Twice as Much as Gas Cars

These taxes are now higher than those applied to vehicles that are run with gas. 

While their gasoline-powered counterparts that cause more harm to the environment continue to be taxed less. 

The tax will also be added to hybrid cars (gas and electric) and electric motorcycles. Both motorcycles and hybrid vehicles will be charged an annual $60 fee.

“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.” (courier journal)

This recently imposed tax could most impact commuters and apartment residents who rely heavily on public charging stations.

But could still be cutting costs for those who own a home and are using their chargers on their electric bill with no taxes applied.

In reality, the state pays for most of these repairs, and gas customers only make up a small percentage of the funds towards road costs. (via electrek)

Annually, the damage of an average electric vehicle is tens of thousands of times less than that of a semi-truck.

“Sharing the roads also means sharing the cost to maintain them,” said KYTC State Highway Engineer James Ballinger. 

 “At the time of initial registration, and each year upon annual vehicle registration renewal, the county clerk shall collect, as required under KRS 186.050, from the registrants of electric motorcycles, electric vehicles, and hybrid vehicles the electric vehicle ownership fees,” says House Bill 360.

In December of 2023, the state reported that they now have more than 9,000 registered electric vehicles.

This was later scrapped, as it was decided that the state couldn’t make these changes; it was up to the federal government. (via Benzinga.)