Published: December 16, 2022

Is Recharging Your Electric Vehicle at a Commercial Charging Station Taxable?

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According to the Louisiana Department of Revenue the answer is yes. The Department recently came out with Revenue Ruling 22-04 indicating that charges for electricity at charging stations is a purchase of tangible personal property subject to sales tax. Besides Louisiana, many states treat sales of electricity as a taxable sale of tangible personal property unless it is sold to a single private residence. As a result, electrical vehicle drivers may see the prices they pay at commercial charging stations increase.

Some states provide business exemptions related to the use of electricity. However, those exemptions do not apply to the private use of electricity in electric vehicles. To save money owners of electric vehicles may choose to recharge their vehicles at home.

While the cost may go up for drivers, there may be a reduced cost to owners of commercial charging stations. Since the fee for electricity is a purchase of tangible personal property, commercial charging station owners should be able to claim a resale exemption on the electricity they purchase for the charging stations.

Rules regarding the charges for electricity sold through commercial charging stations will vary by state, owners should consult with a sales and use tax consultant to see if there are any liabilities or refund opportunities they should address.