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Iowa Implements kw/h Tax on Electric Vehicles, Braces for Revenue Impact

The state of Iowa is set to begin collecting taxes for charging electric vehicles starting this July, according to a report by Route Fifty.

While the number of EVs on Iowa roads still constitutes a small portion of the 4 million registered vehicles in the state, it’s a growing trend. 

To accommodate this shift and make up for the loss of gas tax revenue, the state transportation agency proposed three recommendations to the legislature in 2018: an excise tax per kilowatt hour for non-residential charging, registration fees for electric passenger vehicles, and a hydrogen fuel excise tax. 

These recommendations were enacted into law the following year, with the goal of making sure electric vehicle owners pay their fair share for road and bridge upkeep. 

The increased registration fee aims to cover most of the lost fuel taxes, while the kilowatt-hour charge would ensure out-of-state electric vehicle drivers also contribute. 

Policymakers are particularly concerned about the revenue impact of electric trucks, which are expected to become a bigger factor in coming years. 

The Iowa Department of Revenue is still figuring out how to handle home charging for those in apartment buildings which must use public chargers. 

The state is not considering state-by-state mileage taxes, as officials believe it should be a national study with a national solution.

The electric vehicle trend has a significant impact on the RV industry as well, with more and more electric RVs hitting the road. 

The new charging tax will affect owners of electric RVs and is expected to bring in revenue to the state while also ensuring those who use the roads pay their fair share. 

With the popularity of electric RVs on the rise, it will be interesting to see how the new tax affects their adoption in Iowa.

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May 21, 2024 4:01 am

Iowa’s gearing up for the electric vehicle wave by introducing a kw/h tax on charging. It’s all about keeping the roads in top shape and making sure everyone chips in fairly. Smart move to prepare for the future impact of electric trucks, don’t you think?

Yara Field
Yara Field
May 22, 2024 11:36 pm

I’m impressed with how Iowa is stepping up to handle the increasing electric vehicle presence on their roads with new taxes. It’s cool to see them adapting and planning for the future. The new charging tax could help not just the roads but also the RV industry. Great move, Iowa!


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Hi, you might find this article from Modern Campground interesting: Iowa Implements kw/h Tax on Electric Vehicles, Braces for Revenue Impact! This is the link: https://moderncampground.com/usa/iowa/iowa-implements-kw-h-tax-on-electric-vehicles-braces-for-revenue-impact/