New Electric and Hybrid Vehicle Fees Take Effect Jan. 1

Owners of electric vehicles and gasoline-electric hybrids will soon pay new fees when registering or charging at public stations.

Starting New Year’s Day, House Bill 360 from the 2023 legislative session will take effect. The law is designed to provide more stability of the Kentucky Road Fund by ensuring electric and hybrid vehicle owners pay a fair share of the cost of building and maintaining Kentucky’s transportation infrastructure.

The new annual ownership fee structure under Kentucky law includes the following:

  • – $120 for electric vehicles
  • – $60 for hybrids
  • – $60 for electric motorcycles

These fees are directed into the Road Fund, which pays for road construction, maintenance, engineering, planning, research, and administrative functions to keep the Kentucky transportation network moving.

  • The Kentucky Transportation Cabinet (KYTC) will mail a postcard to Kentuckians subject to the fee.

In 2022, the General Assembly passed House Bill 8, which added a dealer tax of 3 cents per kilowatt-hour of electricity for EV charging stations on or after July 1, 2022. Similar to Kentucky’s Motor Fuels Tax, it will be added to the selling price of the charge to those who operate charging stations. The tax revenue goes to the Road Fund.  

At least $10.9 billion is dedicated to the development of electric vehicle batteries in Kentucky, and the industry is expected to create over 10,000 jobs. The investment coincides with the recent announcement of additional charging stations, now totaling 24, to be constructed along Kentucky’s designated Alternative Fuel Corridors (AFCs).

For information about Kentucky’s electric vehicle infrastructure, fast charging locations, a map of current AFCs, future high-priority routes, and more, visit evcharging.ky.gov.

Kentucky has over 9,000 registered electric vehicles, including motorcycles, and over 60,000 hybrids.