How One State Is Rolling Out an EV Charging Tax System

  • Date: 02/02/2023

Iowa got a head start four years ago when it passed a tax on kilowatt hours sold. Here’s what they’ve learned so far.

While state lawmakers are currently debating new taxes for charging electric vehicles, Iowa is set to collect those taxes starting in July. Four years ago, when EVs were still rare on Iowa roads, legislators approved a law that taxes kilowatt hours sold.

Today, electric vehicles are still a small but growing share of the cars on the road. At the end of 2022, there were 4 million vehicles registered in the state overall. Of those, 6,000 were battery electric vehicles and 4,700 plug-in hybrids.

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