Electric Vehicle Charging Tax Approved by Senate

The Oklahoma Senate sent House Bill 2234 to the Governor’s desk this week. The legislation creates a three-cent tax per kilowatt hour to charge an electric vehicle. Eighty-five percent of the revenue would go to fund road and bridge infrastructure, while the other 15 percent will go to counties for their highway funds.

Senator Zack Taylor is the principal author in the Senate of HB 2234, which has been dubbed the “Driving on Road Infrastructure with Vehicles of Electricity (DRIVE) Act of 2021.” Taylor says lawmakers needed to come up with a way to make sure electric vehicles help pay a share of infrastructure funding, like vehicles using gasoline or diesel.

“One of the main sources of funding for Oklahoma’s roads and bridges comes from fuel taxes, but as electric vehicles have become more popular, it’s clear we must find a fair way to ensure those EV drivers are helping support our transportation infrastructure as well,” Taylor said.  “That’s what the DRIVE Act will do.”

Owners would be charged a registration fee based on the weight and type of their electric vehicle. If the electric vehicle charging taxes exceed the registration fee, taxpayers can file for a refund on their state income tax.

The tax will be levied at public charging stations and exclude those EV “charges” that take place at home. Also, the bill exempts any public charging station already operational by November 1, 2021, from charging the tax until 2041.

Representative Kyle Hilbert, who is the House author, believes this makes things equitable between drivers of electric vehicles and fossil fuel powered vehicles.

“For decades, motorists have largely paid for our road infrastructure with fuel taxes. With the DRIVE Act, Oklahoma has passed forward-thinking legislation that will provide funding for our highway system well into the future for the next generation of automobiles,” Hilbert said.  “I greatly appreciate the support of countless stakeholders who helped ensure this bill was crafted in a fair and equitable way for consumers and automakers alike.”


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