Drivers of electric vehicles in the U.S. state of Tennessee could face higher charging costs under a proposed law that would introduce a tax on electricity used at public fast-charging stations, aligning EV charging more closely with the state’s existing fuel tax framework.
The draft legislation, introduced by Republican state senator Page Walley, would require operators of publicly accessible DC fast chargers to collect a tax of $0.03 per kilowatt-hour on behalf of the state. The measure has not yet been adopted but would apply only to DC chargers with a capacity exceeding 20 kilowatts, exempting slower DC chargers, all AC chargers, and private or workplace charging points.
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Under the proposal, a typical 50-kWh fast-charging session would incur an additional $1.50 in tax. Charging operators would have discretion over whether to add the levy directly to advertised prices or incorporate it into their overall pricing structures.
Tennessee already imposes annual registration fees on electrified vehicles. Since 2024, owners of battery-electric vehicles have paid $200 per year, while hybrid and plug-in hybrid owners pay $100. According to reporting by Tennessee Lookout, the annual fee for battery-electric vehicles is set to rise to $274 by 2027.
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Walley said the proposed charging tax is intended to ensure that all road users contribute to infrastructure upkeep, including visitors passing through the state. “One of the shortcomings… is that all these tourists and folks traveling through our state who are using our roads… those that are using hybrids or EVs and are charging those at charging stations… are not contributing anything to the maintenance of our roads,” Walley said.
The proposal has drawn criticism from EV advocacy groups, which argue that electric vehicle owners are already contributing more than their share. Electrification Coalition said the additional levy would amount to a double burden on EV drivers. “Even with just the registration fee that Tennessee EV drivers pay, that is already much more than what your typical gasoline driver pays in gas tax,” said Anne Blair, vice president of the organisation.
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If enacted, the measure could serve as a model for other states seeking new ways to tax electric vehicle use as fuel tax revenues decline with the gradual shift away from gasoline-powered cars.
