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AN ACT relating to the electric vehicle power tax and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 138.477 is amended to read as follows: 3
(1) As used in this section: 4
(a) "Department" means the Department of Revenue; 5
(b) "Distribute" means the delivery or transfer of electric power into the battery or 6
other energy storage device of an electric vehicle at a location in this state; 7
(c) "Electric vehicle power" means electrical energy distributed into the battery or 8
other energy storage device of an electric vehicle to be used to power the 9
vehicle; 10
(d) "Electric vehicle power dealer" means a person who owns or leases an electric 11
vehicle charging station with a charging capacity of fifty (50) kilowatts or 12
more; 13
(e) "Electric vehicle" has the same meaning as in KRS 186.010; 14
(f) "Electric vehicle charging station" means any place accessible to general 15
public vehicular traffic where electric power may be used to charge a battery 16
or other storage device of a licensed electric vehicle; and 17
(g) "Person" has the same meaning as in KRS 139.010. 18
(2) On or after January 1, 2024: 19
(a) An excise tax with an initial base rate of three cents ($0.03) per kilowatt hour 20
is imposed on electric vehicle power distributed in this state by an electric 21
vehicle power dealer for the purpose of charging electric vehicles in this state; 22
and 23
(b) A surtax with an initial base rate of three cents ($0.03) per kilowatt hour is 24
imposed on electric vehicle power distributed in this state by an electric 25
vehicle power dealer when the electric vehicle charging station is located on 26
state property. 27 UNOFFICIAL COPY 24 RS BR 1863
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(3) (a) On or before December 1, 2024, and on or before each December 1 thereafter, 1
the department shall compare the most current quarterly National Highway 2
Construction Cost Index 2.0 (NHCCI 2.0) value and determine the percentage 3
change in relation to the NHCCI 2.0 value from the same quarter for the 4
previous year. 5
(b) 1. The tax rate on January 1, 2025, and on each January 1 thereafter, shall 6
be adjusted by the change in the NHCCI 2.0 determined by paragraph 7
(a) of this subsection, unless the change is: 8
a. Greater than a five percent (5%) increase, in which case the taxes 9
shall be one hundred five percent (105%) of the tax rates in effect 10
at the close of the previous calendar year; or 11
b. Greater than a five percent (5%) decrease, in which case the taxes 12
shall be ninety-five percent (95%) of the tax rates in effect at the 13
close of the previous calendar year. 14
2. Notwithstanding subparagraph 1. of this paragraph, the tax rate shall not 15
be less than the initial base rate identified in subsection (2) of this 16
section. 17
(c) Adjustments to the tax rate shall be rounded to the nearest one-tenth of one 18
cent ($0.001). 19
(4) At least twenty (20) days in advance of the first day of each calendar year, the 20
department shall provide notification of: 21
(a) The adjusted electric vehicle power tax rate for the upcoming calendar year to 22
all electric vehicle power dealers; and 23
(b) The adjusted electric vehicle ownership fee imposed under KRS 138.475 for 24
the upcoming calendar year to all county clerks. 25
(5) This tax shall be: 26
(a) Administered by the department; and 27 UNOFFICIAL COPY 24 RS BR 1863
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(b) Transferred to the road fund as defined in KRS 48.010. 1
(6) (a) The tax shall be added to the selling price charged by the electric vehicle 2
power dealer at the electric vehicle charging station on electric vehicle power 3
sold in this state. 4
(b) If there is no selling price at the charging station, the electric vehicle power 5
dealer shall be responsible for paying the tax on the electric power distributed 6
by the electric vehicle charging station, except in the case of an electric 7
vehicle charging station installed prior to July 1, 2022. 8
(7) (a) The tax imposed shall be paid by the electric vehicle power dealer to the State 9
Treasurer. 10
(b) The electric vehicle power dealer is liable for the electric vehicle power tax. 11
(8) Every electric vehicle power dealer shall, by the twenty-fifth day of each month, 12
transmit to the department reports, on the forms the department may prescribe, on 13
the total kilowatt hours distributed and the amount of tax collected. Payment of the 14
tax shall be due with the report. 15
(9) The electric vehicle power dealer shall keep and preserve an accurate record of all 16
receipts of electricity and tax together with invoices or other pertinent records and 17
papers required by the department for five (5) years. 18
(10) (a) No dealer or other person shall fail or refuse to make the returns and pay the 19
tax prescribed by this section, or refuse to permit the department or its 20
representatives appointed by the commissioner of the department in writing to 21
examine his or her records, papers, files, and equipment pertaining to the 22
taxable business. 23
(b) No person shall make an incomplete, false, or fraudulent return, or attempt to 24
do anything to avoid a full disclosure of the amount of business done or to 25
avoid the payment of the whole or any part of the tax or penalties due. 26
(c) No person shall fail to keep and preserve records of electric vehicle power 27 UNOFFICIAL COPY 24 RS BR 1863
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distributed to make reports as required by this section. 1
(11) Any person who violates any provision of this section shall be subject to the 2
uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax 3
interest rate as defined in KRS 131.183. 4
(12) (a) Notwithstanding any other provisions of this chapter to the contrary, the 5
president, vice president, secretary, treasurer, or any other person holding any 6
equivalent corporate office of any corporation subject to the provisions of this 7
chapter shall be personally and individually liable, both jointly and severally, 8
for the taxes imposed under this chapter, and neither the corporate dissolution 9
nor withdrawal of the corporation from the state nor the cessation of holding 10
any corporate office shall discharge the foregoing liability of any person. 11
(b) The personal and individual liability shall apply to each and every person 12
holding the corporate office at the time the taxes become or became due. 13
(c) No person will be personally and individually liable pursuant to this section 14
who had no authority in the management of the business or financial affairs of 15
the corporation at the time that the taxes imposed by this chapter become or 16
became due. 17
(13) (a) Notwithstanding any other provisions of this chapter, KRS 275.150, 362.1-18
306(3) or predecessor law, or 362.2-404(3) to the contrary, the managers of a 19
limited liability company, the partners of a limited liability partnership, and 20
the general partners of a limited liability limited partnership or any other 21
person holding any equivalent office of a limited liability company, limited 22
liability partnership, or limited liability limited partnership subject to the 23
provisions of this chapter shall be personally and individually liable, both 24
jointly and severally, for the taxes imposed under this chapter. 25
(b) Dissolution or withdrawal of the limited liability company, limited liability 26
partnership, or limited liability limited partnership from the state, or the 27 UNOFFICIAL COPY 24 RS BR 1863
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cessation of holding any office shall not discharge the liability of any person. 1
(c) The personal and individual liability shall apply to each and every manager of 2
a limited liability company, partner of a limited liability partnership, and 3
general partner of a limited liability limited partnership at the time the taxes 4
become or became due. 5
(d) No person shall be personally and individually liable under this subsection 6
who had no authority to collect, truthfully account for, or pay any tax imposed 7
by this chapter at the time that the taxes imposed by this chapter become or 8
became due. 9
(14) "Taxes" as used in this section shall include interest accrued at the rate provided by 10
KRS 131.183, all applicable penalties imposed under this chapter, and all applicable 11
penalties and fees imposed under KRS 131.180, 131.410 to 131.445, and 131.990. 12
(15) The department may prescribe forms and promulgate administrative regulations to 13
execute and administer the provisions of this section. 14
Section 2. This Act shall apply retroactively to January 1, 2024. 15
Section 3. Whereas electric vehicle power dealers are currently remitting the 16
electric vehicle power tax and this Act would necessitate immediate notification to those 17
dealers, an emergency is declared to exist, and this Act takes effect upon its passage and 18
approval by the Governor or upon its otherwise becoming a law. 19