Oklahoma § 68-6504 - Tax on electricity used to charge or recharge electric

§ 68-6504. Tax on electricity used to charge or recharge electric

vehicles.

A. There is hereby imposed a tax of three cents ($0.03) per

kilowatt hour or its equivalent, as determined by the Oklahoma

Corporation Commission, on the electric current used to charge or

recharge the battery or batteries of an electric vehicle. The tax

shall be levied beginning January 1, 2024.

B. The amount of tax prescribed or authorized by this section

shall not include any fees or charges associated with the method for

payment for the charging service, but shall be based only upon the

rate of tax and the electricity transferred during the charging

process.

C. The tax imposed pursuant to this section shall not be

applicable to electric vehicles charged at a private residence at

which the owner or occupant of the residence uses electric power

paid for by the owner or occupant of the residence which is supplied

to the residence by a regulated public utility, an electric

cooperative or other wholesale level of electric supply, whether or

not supplemented by electric power produced by the owner or occupant

using solar energy or other methods to provide electric power to the

residence.

D. The tax imposed pursuant to this section shall not be

applicable to electric vehicles charged at charging stations with a

charging capacity of less than fifty (50) kilowatts and charging

stations that do not require payment for use.

E. In order to determine an equivalent measurement as required

in subsection A of this section, the Oklahoma Corporation Commission

shall promulgate rules that allow businesses, based on the average

cost that such business charged customers at the business’s charging

stations in the preceding year, to charge the tax on a statewide

percentage basis equivalent to the amount of tax that would

otherwise have been charged had the rate provided in subsection A of

this section been applied in the preceding year. The percentage

basis equivalent shall be recalculated annually through an

administrative process outlined in Oklahoma Corporation Commission

rules. Parties who wish to challenge the administrative calculation

Oklahoma Statutes - Title 68. Revenue and Taxation

shall follow the process outlined in Commission rules. Businesses

with multiple charging station locations in the state shall be

authorized to utilize the same percentage basis equivalent at all

such locations. The Oklahoma Corporation Commission shall provide

the calculation, once deemed final by rule, to the Oklahoma Tax

Commission for collection from businesses.

Added by Laws 2021, c. 157, § 4, eff. Nov. 1, 2021. Amended by Laws

2021, c. 412, § 1, eff. Nov. 1, 2021; Laws 2023, c. 236, § 1, eff.

Nov. 1, 2023.

NOTE: Laws 2021, c. 412, § 4 states that the provisions of this act

shall be contingent upon the enactment of the provisions of House

Bill No. 2234 (c. 157) of the 1st Regular Session of the 58th

Oklahoma Legislature. House Bill No. 2234 was approved by the

Governor on April 22, 2021.