A New Tax For Wisconsin Drivers Starts Soon – Here’s What To Know

The State of Wisconsin recently announced that it will soon begin collecting a new tax on the drivers of a growing number of vehicles on the state's roads.

The new tax will specifically impact the drivers of electric vehicles, which is an expanding segment of the variety of vehicles found on Wisconsin's roadways.

The Wisconsin Department of Revenue's Secretary Designee David Casey called the new excise tax "a crucial source of revenue" in a press release about the new tax, which was announced on November 14.

Here's what you need to know about the new tax:

Why is this new tax being charged in Wisconsin?

As the number of electric vehicles continues to grow in Wisconsin, state officials need to shift their revenue sources to pay for maintaining the state's roads and bridges.

Traditionally, road funding is generated by a tax on gasoline and diesel fuel to pay for the costs of repairing and maintaining roads and other transportation infrastructure like bridges.

Department of Revenue explained in their press release, adding this new tax "will help ensure continued funding for road repairs and construction as Wisconsin drivers increasingly make the switch to electric vehicles, while creating a more equitable system in which all drivers contribute to road maintenance costs."

In short, the new tax will help offset losses of traditional fuel taxes as more people opt for electric vehicles while making sure that owners of EVs are more equally involved in funding road projects.

How much will this new tax cost Wisconsin drivers?

The new tax will add a charge of 3 cents per kilowatt-hour of electricity used to charge an EV. The tax will be implemented by charging station operators as part of their total cost to charge the vehicle, much like how gas taxes are factored in as part of the cost of fueling up.

Does this tax also impact home charging stations? What about other chargers?

The owners, operators, managers, or leases of EV charging stations will be required to register with the Wisconsin Department of Revenue using the Online Business Tax Registration. The new tax will apply to Level 3 chargers and Level 1 or Level 2 chargers installed on or after March 22, 2024.

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Registration and this excise tax are both required regardless of whether the charger is available for public use and whether or not there is a charge to the consumer from the charging station.

The exception to this tax and registration is for residential EV charging stations.

When does the new tax go into effect?

The new electric vehicle charging tax goes into effect on January 1, 2025. The registration mentioned above needs to be completed in order for charging services to be provided after this deadline.