Bill
HB 2003
Imposes a $0.09 per kWh road-repair tax at public EV charging stations, collected by operators and remitted to the State Highway Fund to finance highway construction and repairs.
Status & introduction
- Introduced: January 22, 2025
- Status: Referred to Committee on Transportation (Kansas)
- Short title: EV energy equity road repair tax (EVEERRT) act
Purpose / intent
- Impose a road-repair tax on electricity delivered to electric vehicles (EVs) at public charging stations to help fund road construction and repair in the same manner motor fuel taxes fund highways. The tax is intended to capture a revenue source from EV use of state highways.
Key provisions
- Tax Imposed: A road repair tax of $0.09 per kilowatt‑hour (kWh) (“or portion thereof”) on electricity distributed at any public charging station.
- Covered devices: “Public charging station” = infrastructure that supplies electricity to the public for EV charging; explicitly excludes chargers located at a primary residence.
- Collection and remittance: Owner/operator of the public charging station must collect the tax (may add it to the selling price) and remit it to the Director of Taxation according to rules/timelines the Director prescribes. The Director remits proceeds to the State Treasurer for deposit to the State Highway Fund.
- Licensing and reporting: Secretary of Revenue is authorized to adopt rules for licensing public charging stations and for reporting the amount of energy provided.
- Recordkeeping: Charging‑station owners must keep books/records for three years and make them accessible to tax authorities.
- Enforcement & penalties: Failure to remit is an unclassified misdemeanor punishable by a fine of $25 per kWh not remitted, imprisonment (30 days to 1 year), or both. The bill adopts, to the extent practicable, existing motor‑fuel tax liability provisions for collection enforcement.
- Effective date: The act takes effect upon publication in the statute book (per the bill).
Estimated fiscal and administrative impact (from Kansas Division of the Budget / Dept. of Revenue)
- Estimated revenue to State Highway Fund: $766,370 (FY2026), $881,325 (FY2027), $1,013,524 (FY2028). These estimates use assumptions including: 17,378 registered EVs (2025) rising to 22,982 (2027); average travel 7,000 miles/year; 20% of charging at public stations; and 0.35 kWh/mile.
- Sales tax interaction: The department notes a reduction in State General Fund sales tax revenue because sales tax would no longer be collected on electricity at public stations, but that loss was not estimated.
- Implementation cost: One‑time / FY2026 implementation and automated tax system modification cost estimated at $653,645 (including $180,223 for two new positions). Additional programming or contractor costs could be required if combined legislative changes exceed internal capacity.
- Department of Transportation: No staff or operating expenditure changes expected.
Who is affected
- Primary: Owners/operators of public EV charging stations (collection, recordkeeping, licensing).
- Secondary: EV drivers (may see the tax passed through as a per‑kWh charge), state highway fund (receives proceeds), State General Fund (possible sales tax revenue reduction).
- Enforcement agencies: Department of Revenue/Director of Taxation and Secretary of Revenue for rulemaking and compliance.
Practical considerations & implications
- The tax applies even when electricity is provided free to the public, which could affect workplace or retail “free” charging if classified as public.
- The “or portion thereof” language suggests partial kWh may be rounded up for tax calculation; administrative rules will clarify calculation and reporting.
- Penalties as drafted are severe (per‑kWh fine plus potential jail), which may raise compliance/constitutional questions in implementation or litigation.
- The projected revenue is modest relative to total highway funding needs but creates an EV‑specific funding stream and administrative obligations for small charging‑station operators.
Compiled from official sources — confirm details with the bill’s official record.
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