Is Recharging Your Electric Vehicle at a Commercial Charging Station Taxable?
The Louisiana Department of Revenue affirms that charging stations must collect sales tax on electricity. Recently, the department issued Revenue Ruling 22-04, stating that charges for electricity at charging stations, known as EV Charging Station Taxes, constitute a purchase of tangible personal property subject to sales tax.
Sales Tax on Electricity at EV Charging Stations
Moreover, many states, including Louisiana, tax sales of electricity at commercial charging stations unless sold to a single private residence. Consequently, drivers of electric vehicles may experience increased prices at these stations.
Business Exemptions and Considerations
While some states offer business exemptions related to electricity use, these do not apply to electricity used in electric vehicles. To cut costs, electric vehicle owners may opt to recharge their vehicles at home.
Impact on Commercial Charging Station Owners
However, while drivers may face higher costs, commercial charging station owners may benefit. As electricity purchases are considered tangible personal property, owners can claim a resale exemption for the electricity they purchase for their stations.
Consultation with Sales and Use Tax Consultant
Given the variation in state rules, charging station owners should seek advice from sales and use tax consultants to address any liabilities or refund opportunities.
For expert guidance on navigating sales and use tax regulations related to EV charging station taxes, contact Clarus Partners, your trusted tax advisor.