Wisconsin Implements Electric Vehicle Charging Tax to Fund Roads
A recent policy change in Wisconsin now affects electric vehicle (EV) owners utilizing public charging stations. Legislators have introduced a new tax of three cents per kilowatt hour, which was signed into law by Governor Tony Evers earlier this year.
Businesses providing EV charging services, such as hotels, are required to register with the Wisconsin Department of Revenue to comply with this new tax law. The Revenue Secretary emphasized that this tax will not only help maintain the state’s roads but also promote fairness among all drivers, as electric vehicle owners will contribute to road maintenance costs.
Projected revenue from this tax is expected to reach approximately $3.35 million in 2025, followed by an increase to about $3.85 million in 2026. Importantly, this tax does not extend to home charging stations, where most drivers recharge their vehicles daily.
One electric vehicle owner from Verona expressed that despite the tax, the overall cost of charging remains significantly lower than traditional gasoline prices, highlighting the disparity between EV and gas taxes. For instance, recharging a 50-kilowatt hour battery will incur a tax of only $1.50, contrasting sharply with the nearly $5 tax that comes with filling a conventional 15-gallon gas tank.
As the state prepares to install over 50 fast chargers by 2025, it aims to enhance the charging infrastructure, especially in under-served northern areas of Wisconsin.
Wisconsin’s New EV Charging Tax: What You Need to Know
Wisconsin has taken a significant step towards updating its transportation funding model by introducing a new tax on electric vehicle (EV) charging. This initiative, which imposes a fee of three cents per kilowatt-hour on public charging stations, aims to generate funds for road maintenance and ensure that all drivers contribute to infrastructure costs.
### Key Details of the New EV Charging Tax
**Implementation and Compliance:**
Businesses that provide EV charging services, including hotels and public charging stations, are mandated to register with the Wisconsin Department of Revenue. This requirement is set to streamline tax collection and ensure compliance with the new law.
**Projected Revenue Increases:**
The state’s projections indicate that this tax will generate approximately $3.35 million in 2025, with expectations to rise to about $3.85 million by 2026. This steady increase highlights the growing reliance on electric vehicles and the need for sustainable funding for road maintenance.
**Tax Exemptions and Comparisons:**
Importantly, the tax does not apply to home charging stations, where the majority of EV owners recharge their vehicles. One Wisconsin resident noted that even with the introduction of this tax, the cost of charging their vehicle remains significantly lower than fueling a traditional gasoline car. For example, charging a 50-kilowatt hour EV battery incurs a tax of only $1.50, compared to the nearly $5 tax associated with filling a conventional 15-gallon gas tank.
### Expansion of Charging Infrastructure
As part of this initiative, Wisconsin plans to enhance its EV charging infrastructure significantly. The state is preparing to install over 50 fast chargers by 2025, especially targeting underserved regions in northern Wisconsin. This effort aims to improve accessibility to EV charging stations, making it easier for drivers to transition to electric vehicles.
### FAQs About the EV Charging Tax in Wisconsin
**Q: When does the EV charging tax take effect?**
A: The tax was implemented earlier this year following its signing into law by Governor Tony Evers.
**Q: Are there any exemptions to the tax?**
A: Yes, the tax does not apply to home charging stations.
**Q: How will the tax revenue be used?**
A: The revenue generated from this tax will be allocated primarily to maintain and improve road infrastructure in Wisconsin.
**Q: How does this tax affect the overall costs of owning an EV?**
A: Despite the new tax, many EV owners find that the cost of charging still remains substantially lower than traditional gasoline costs.
### Pros and Cons of the New Tax
**Pros:**
– **Infrastructure Maintenance:** Funds generated will help improve roads, benefiting all drivers.
– **Fair Contribution:** Ensures that EV owners contribute to road maintenance, similar to gasoline tax payers.
– **Enhanced Charging Network:** Increased investment in charging stations promotes the adoption of EVs.
**Cons:**
– **Increased Costs for Public Charging:** Users of public charging stations may face slightly higher costs as the tax is passed down.
– **Potential Deterrent for New EV Buyers:** The tax might dissuade those on the fence about investing in electric vehicles.
### Conclusion
Wisconsin’s introduction of a tax on electric vehicle charging reflects a growing recognition of the need for sustainable funding for road infrastructure as the adoption of EVs increases. While it introduces a new cost for users of public charging stations, it also promotes equity among all vehicle owners and supports infrastructure improvements throughout the state.
For more information on electric vehicle policies and innovations, visit Transportation.gov.
