Legislative testimony shows desire for electric vehicle tax

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From the Legislative Research Commission

Commonwealth counties would like lawmakers to make some changes during the next legislative session in 2022.

One of these changes includes the establishment of a tax or charge on electric vehicles.

Representatives from the Kentucky Association of Counties (KACo) today presented the group’s 2022 legislative agenda to the Interim Joint Committee on Local Government.

“Now is the time for Kentucky to fix this problem,” said Shellie Hampton, director of government affairs for KACo. “Thirty states, including all of our neighbors, have already instituted a levy on electric vehicles. “

Hampton also noted that many states that have implemented charges for electric vehicles share the revenue with county governments.

KACo reports that nearly 40% of county roads are in need of moderate to major repairs, and that county governments own and maintain half of the state’s roads. Currently, counties receive only part of the fuel tax funds from the state to finance their own road services.

Hampton said if EVs make up less than 1% of vehicles in Kentucky and initial revenues from an EV tax would be low, that number is expected to increase.

“The automakers that account for about a quarter of global auto sales in 2019, including Ford GM, Volvo and Mercedes, announced earlier this month that they would all work to phase out sales of gasoline vehicles and diesel by 2040 around the world, ”said Hampton. .

Senator Michael J. Nemes (R-Shepherdsville) asked if there had been any discussion about not establishing a separate tax on electric vehicles and implementing a single “user tax” at the square.

Jim Henderson, executive director and CEO of KACo, said that ultimately KACo would like counties to receive more money to take care of roads and bridges.

“As Shellie mentioned earlier, there are projections that up to 30% of the cars that will be sold new by 2030 will be electric,” said Henderson. “So whatever we do, we really can’t wait any longer to start thinking about an alternative funding source for transportation. “

Monday at 2 p.m., no invoice relating to a tax or fees on electric vehicles had been pre-filed by a legislator. The Kentucky General Assembly cannot take any action on a bill until the 2022 legislative session begins on January 4.

Photo: Senator Nemes (via LRC)


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