Two new legislation with costs for registering, charging electric and hybrid vehicles take effect on January 1

Owners of electric vehicles and gasoline-electric hybrid vehicles in Kentucky may soon face new fees for registering or charging at public stations, according to two state regulations that go into effect on New Year’s Day.

The passage of House Bill 360 in the 2023 Kentucky General Assembly was an important achievement for the Kentucky Road Fund’s long-term security. It ensured that EV and hybrid owners pay a fair share of the costs associated with the construction and maintenance of Kentucky’s transportation infrastructure.

According to Kentucky law, the new annual ownership fee structure includes the following:

  • $120 for electric automobiles;
  • $60 for hybrid vehicles; and
  • $60 for electric motorcycles

These fees go to the Road Fund, which pays for road building, maintenance, engineering, planning, and research, as well as administrative responsibilities to keep Kentucky’s transportation network running.

The Kentucky Transportation Cabinet (KYTC) will send a postcard to all Kentucky residents who pay the charge. Payments can be done online at EVHV.ky.gov or in person upon renewing registration at your county clerk’s office.

Two new legislation with costs for registering, charging electric and hybrid vehicles take effect on January 1

“Shared roads mean shared maintenance costs,” stated KYTC State Highway Engineer James Ballinger.

“With the rise in hybrid and EV owners in recent years, the ownership fee helps ensure their contributions to the Road Fund match those of the majority of Kentucky drivers who drive a gas or diesel-powered vehicle and pay associated taxes.”

House Bill 8 was passed by the General Assembly in 2022, adding a dealer tax of 3 cents per kilowatt-hour of electricity for EV charging stations installed on or after July 1, 2022. It will be applied to the selling price of the charge to those who run charging stations, similar to Kentucky’s Motor Fuels Tax. The tax revenue is directed to the Road Fund.

These legislative initiatives complement private investments secured by the Beshear administration from significant industrial companies like as Ford Motor Company, SK On, INFAC North America, and Toyota.

At least $10.9 billion is being invested in the development of electric vehicle batteries, with the industry estimated to employ over 10,000 people. This significant investment corresponds with the recent announcement of 24 more charging stations to be built throughout Kentucky’s designated Alternative Fuel Corridors (AFCs).

Kentucky currently has over 9,000 registered electric cars, including motorcycles, as well as over 60,000 hybrids.

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