Here’s what you need to know
UNTIL RECENTLY, electric-vehicle drivers in Wyoming faced triple taxation. They had to purchase an annual EV decal for $200 a year, they paid an Alternative Fuel Tax at charging stations (similar to a gas tax), and they paid sales tax on electricity. This triple taxation was not only unfair to drivers — it also caused some public charging stations to go offline, which is problematic in a state where charging infrastructure is sparse.
A new law makes the system fairer for Wyoming EV drivers, reduces red tape for charging stations, and ensures that out-of-state visitors pay their fair share to maintain roadways.
FAQ
I live in Wyoming and own an electric vehicle. What taxes will I have to pay now?
You will still need to pay an annual Electric Vehicle decal fee, but the price has been cut in half, from $200 to $100.
You will also pay the Alternative Fuel Tax (3.5 centers per kilowatt-hour), but only at high-speed (Level 3) public charging stations. This tax is roughly equivalent to Wyoming’s gas tax.
You do not have to pay sales tax at high-speed chargers. Gasoline and diesel are also exempt from sales tax at the pump, so this puts them on a level playing field.
What are the different ways electric vehicles can charge?
There are 3 primary ways for an electric vehicle to charge.
Level 1: Charging using a regular home outlet—the same type you would plug a cell phone into. Some EV owners rely exclusively on Level 1 charging, especially if they drive less than 40 miles per day, but it can take days to fully recharge a vehicle.
Level 2: Charging using a dedicated high-power outlet—the same type used for a home dryer or oven. Level 2 chargers can recharge a car overnight (6–10 hours). Homeowners frequently install them, and they are also often available at public locations such as workplaces, downtown shopping districts, car dealerships, and hotels, often as an amenity to attract visitors.
Level 3: These high-speed chargers work more like traditional gas pumps for long-distance travel. They are more complicated than what you can install at home, but they’re super fast: They can fully charge an EV in 20–30 minutes.
What if I own a plug-in hybrid vehicle?
Under the new law, owners of plug-in hybrid vehicles (PHEVs) will need to purchase an annual EV decal, which costs $50 per year. PHEV owners pay less than full EVs because their vehicles run on both electricity and gasoline. While they may charge at home, they also pay the state’s fuel tax when filling up with gasoline.
How do the taxes on EVs compare with the taxes that conventional drivers pay at the pump?
The Alternative Fuel Tax closely matches the state’s fuel tax of 24 cents per gallon.
When electric vehicles are driven long distances in the state, their owners pay the Alternative Fuel Tax at high-speed charging stations. This system works much like paying fuel tax when you buy gas—the more you drive, the more you pay. However, because many EV owners also charge at home or at Level 2 stations that are exempt from the Alternative Fuel Tax, they pay an annual EV decal fee to help make up for that loss of fuel tax revenue. This fee was designed to be as fair as possible and takes into account factors such as efficiency differences between gas and electric vehicles, expected miles traveled, and other considerations.
Bottom line: If you own an EV, you can generally expect to pay about the same amount per year as drivers of conventional vehicles.
How will Wyoming have the money to maintain roads if EV drivers are paying less in taxes?
Wyoming’s Department of Transportation could actually collect more revenue under the new law, because out-of-state drivers will start paying their fair share. Historically, out-of-state EV drivers were not taxed at all when driving through Wyoming. More recently, they’ve paid a modest tax, but it’s been very low. Now, they will pay 3.5 cents per kilowatt-hour at high-speed public charging stations, which is commensurate with gas tax.
Big picture, this law levels the playing field between gas and electric vehicles and will be good for Wyoming’s economy.
I’m the manager of a business, and we offer public charging as a perk for our patrons. How will the new law affect us?
Under the new law, Level 2 charging stations are exempt from licensing requirements and will no longer have to pay the Alternative Fuels Tax. In Wyoming, laws generally go into effect on July 1 of the year in which they are enacted, so you should continue to track electricity and submit payments until WYDOT provides additional guidance or updates.
If you run a Level 3 charger, you will need to be licensed and pay the Alternative Fuels Tax.
I heard the old tax system caused a bunch of EV charging stations to shut down. Why was that? Will those charging stations come back online now?
Under the old system, a number of Level 2 charging stations were removed from public access, due to administrative and financial burdens. Unlike gas stations, Level 2 EV charging in Wyoming is offered by a range of entities, from hotels to local businesses to car dealerships. In most instances, EV charging is not their primary business; it’s something they offer as a perk or a way to attract visitors.
Prior to now, there was so much red tape to navigate in order to comply with the state’s tax laws that some of these businesses decided it wasn’t worth it to continue offering public charging. Many smaller, low-speed charging stations didn’t even have a way to track the amount of electricity their patrons were using. We expect some of these stations to come back online once the new law takes effect, but there is a chance that some locations may have permanently decommissioned their chargers. If you are unsure of a station’s status, you can call ahead or check the PlugShare website.
I don’t own an electric vehicle. How does this impact me?
You can rest assured that both out-of-state and Wyoming EV and PHEV drivers are paying their fair share of road use taxes and fees. You can also be confident that those who choose to go electric will not be penalized for their decision.
Big picture, this law levels the playing field between gas and electric vehicles and will be good for Wyoming’s economy. Removing red tape will make it easier for charging infrastructure to expand, which will help residents and visitors alike travel around the state with ease. As more people switch to electric vehicles, better charging infrastructure and fairer taxes will keep Wyoming open for business, regardless of what people drive.
Header image: Dave Leon