AN ACT to amend Tennessee Code Annotated, Title 9; Title 54; Title 55 and Title 67, relative to vehicles wholly or partly powered by electricity.
HB1680 creates a new tax and licensing framework for electric vehicle charging stations in Tennessee. Beginning January 1, 2027, the bill imposes a 3-cent-per-kilowatt-hour excise tax on electric vehicle power sold or distributed by an electric vehicle power dealer, defined generally as a person who owns or leases a public charging station with at least 20 kilowatts of charging capacity and sells electricity through it. The bill also requires such dealers to obtain a special electricity sale and distribution license, pay a $30 application fee, identify each charging station location and station type on the license, and prominently post the license at each station.
The bill defines key terms such as electric vehicle, electric vehicle charging station, electric vehicle power, residence, and extended stay rental, and it excludes charging locations on residential premises from the charging-station definition. It requires charging stations to measure and display electricity delivered on a per-kilowatt-hour basis and to meter total kilowatt-hours dispensed. The bill also authorizes the commissioner to investigate violations, promulgate rules, and impose civil penalties of $5,000 per day or $25 per kilowatt-hour involved, whichever is greater, for violations of the new part.
Revenue from the new excise tax is to be apportioned in the same manner as certain existing vehicle registration fee revenue under Tennessee law. The license fee revenue is to be remitted to the county or municipality where the charging station is located, after administrative costs of up to 2%, and must be used for roads, bridges, or public transportation. The bill also specifies that the tax is included in the sales price for purposes of calculating sales and use tax.
The overall sentiment reflected in the available record is limited because there are no committee transcripts or recorded votes included, so no direct support or opposition can be measured from discussion. Based on the bill text alone, the measure appears designed to place electric vehicle charging power under a tax and regulatory structure similar to other transportation-related revenue systems, which may be viewed as a revenue and oversight measure rather than an incentive for EV adoption.
The main point of potential contention is the new tax burden on public EV charging and the compliance obligations for charging-station operators, especially the reporting, metering, licensing, and penalty provisions. Supporters would likely emphasize road and transit funding and tax parity with gasoline-related transportation revenue, while critics may argue the bill could discourage EV infrastructure investment or increase charging costs for consumers.
The bill adds new provisions to Title 67 governing taxation and licensing of electric vehicle charging stations and electric vehicle power dealers, while also referencing existing definitions in Title 55 and existing tax apportionment rules. It creates a new excise tax, licensing requirement, reporting regime, metering and price-disclosure requirements, enforcement authority, and civil penalties, and directs how the resulting tax and license revenues must be distributed and used by local governments and the state.
No committee discussion or vote history is provided, so the record does not show formal support or opposition. From the structure of the bill, it appears to be a revenue-raising and regulatory measure aimed at EV charging infrastructure, which may appeal to those seeking transportation funding parity but may draw concern from EV advocates and charging providers.
The likely areas of contention are the 3-cent-per-kilowatt-hour excise tax, the requirement that charging-station operators obtain a special license and file monthly reports, and the substantial civil penalties for violations. Opponents would likely focus on the possibility of higher charging prices and reduced EV adoption, while supporters would likely emphasize funding for roads, bridges, and public transit and the need to regulate and measure public charging sales consistently.