New Kentucky law creating fees for electric and hybrid vehicles to take effect

KENTUCKY (WKYT) - In 2024, Kentucky drivers of electric vehicles and hybrids will pay more money to hit the road.

The state is implementing a fee ensuring owners of those vehicles pay their fair share of maintaining Kentucky’s roads and infrastructure.

This typically comes through the gas tax, but if you’re charging up, you’re not paying those fees.

Mike Proctor is a member of Evolve Kentucky, an advocacy group for electric vehicles. He says he’s not surprised the state is implementing a new fee to operate his Tesla.

“it needed to come. We need to pay our fair share,” said Proctor.

Since Proctor is charging up, he’s not paying a gas tax. That additional money drivers pay at the pump goes toward maintaining Kentucky roads and infrastructure.

Starting in 2024, the new annual ownership fee under Kentucky law includes:

• $120 for electric vehicles
• $60 for hybrids
• $60 for those who own electric motorcycles.

“We knew this would come at some point,” said Proctor. “We were hoping that maybe it gets to 10% market share. Let this EV thing blossom a little bit more.”

According to the state Transportation Cabinet, currently, Kentucky has more than 9,000 registered electric vehicles, including motorcycles and more than 60,000 hybrids.

Overall, there are about 1.6 million vehicles in the Commonwealth.

“So we are not going to make a huge contribution even this year,” said Proctor.

Proctor understands this new fee but doesn’t understand being taxed twice.

“But unfortunately, in addition to paying our fair share, we are also being hit with an excise tax when we go to charge at our pumps our in the Commonwealth, and so we are kind of being double taxed,” said Proctor.

In 2022, the General Assembly passed House Bill 8, it added a dealer tax of 3 cents per kilowatt hour of electricity for EV charging stations.

Right now, Proctor says he’s ready to pay his fair share and contribute to Kentucky’s roads.

“I’ve got my $120 check all made out, and I think I’ll probably frame it and say ok here’s our opportunity to be part of the solution and not part of the problem,” said Proctor.

Owners of these vehicles can pay online or when renewing their registration at their local county clerk’s office.