In Wisconsin, a new tax has been implemented targeting electric vehicle (EV) charging. Starting now, EV owners will need to pay a three-cent tax for every kWh delivered over certain Level 3 chargers, which offer speeds up to 250 kW, as well as any new Level 1 and Level 2 chargers established post-March 2022.
For drivers of the Tesla Model Y, for example, this means an increase of approximately $2.40 for a full charge at these stations. This regulation extends to all users, including those benefiting from lifelong free Supercharging for Tesla’s older Model S and X vehicles.
In addition to this charging cost, EV owners in Wisconsin are already subject to a $175 annual “electric surcharge fee,” effectively a road tax. By January 1, 2025, owners or operators of EV charging stations must register with the Wisconsin Department of Revenue before they begin to provide electricity subject to this tax.
However, home charging stations, like Tesla’s Gen 2 Wall Connector, remain unaffected unless they are publicly located, such as in hotels. David Casey, the Secretary Designee of the Wisconsin Department of Revenue, highlights the necessity of this excise tax, arguing it’s essential for sustaining roadworks and infrastructure. By collecting these funds, Wisconsin aims to maintain its roadways as the popularity of EVs grows, expecting all drivers to contribute equitably to road upkeep.
While adjustments for EV owners proliferate in several states, many have begun adopting such taxes that often surpass those levied on traditional internal combustion engine (ICE) vehicles. The rationale behind these higher taxes is the greater average weight of electric cars, which could cause more wear on the roads.
Despite legitimate concerns over necessary road maintenance funding, these added charges can feel like a form of double taxation for EV owners needing efficient roadways, instigating a broader conversation about fair taxation in the evolving transport landscape.
