How One State Is Rolling Out an EV Charging Tax System

Starting from July, the state of Iowa is set to collect taxes for charging electric vehicles based on kilowatt hours sold. The law for the tax was approved four years ago and is aimed at recouping lost gas tax revenue which the state relies heavily on. The fees for the new tax are intended to be revenue-neutral, focusing on making sure electric vehicle owners pay their fair share for the upkeep of the road network. Policymakers are concerned about the revenue impact of electric trucks and the increased registration fee is intended to capture most of the lost fuel taxes from Iowa residents, while the kilowatt-hour charge would ensure that out-of-state EV drivers contribute to Iowa’s roads. Issues such as handling public chargers at apartment complexes are still being worked out and Iowa officials are aware of pilot programs to develop per-mile taxes, but they believe it should be a national study and solution.

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