The new year will bring changes to the ownership fees for electric vehicles in Kentucky.
On January 1, 2025, by statute, ownership fees for electric vehicles in Kentucky will increase by 5%, to account for changes in national road maintenance costs. Separate legislation eliminated ownership fees for hybrid vehicles beginning in 2025.
Starting January 1, 2025, the new, annual ownership fees under Kentucky law will be:
$126 for electric vehicles
$126 for plug-in hybrid electric vehicles
$63 for electric motorcycles
$0 for hybrid vehicles
The 2023 General Assembly added an electric vehicle (EV) and electric motorcycle ownership fee to ensure road construction and maintenance costs were shared fairly between Kentucky’s electric-vehicle and gas-vehicle drivers. Per KRS 138.477, the fee is subject to adjustment annually based upon the percentage change in the quarterly National Highway Construction Cost Index 2.0 from current year to the previous year. The published quarterly rate for January-March 2024 was 3.1908, compared to the January-March 2023 rate of 2.843. This is a 12% increase in costs, however, the maximum annual increase for electric vehicle ownership fees allowed by law is 5%.
These fees are directed into the Road Fund, which pays for road construction, maintenance, engineering, planning and research as well as administrative functions to keep the Kentucky transportation network moving. Starting in January 2025, the electric vehicle ownership fee will be included on the vehicle renewal reminder notice and integrated with Kentucky Automated Vehicle Information System. The vehicle owner will be able to pay it with their normal registration renewal at drive.ky.gov or at county clerks’ offices.
The Beshear administration has secured major economic development projects in the electric vehicle and battery sector from industry leaders such as Ford Motor Company, SK On, AESC, INFAC North America and Toyota. At least $11.7 billion is dedicated to the development of the state’s electric vehicle and battery industry, which is expected to create over 10,000 jobs.
This substantial investment coincides with Team Kentucky’s buildout of its EV Charging Program, which anticipates adding up to 50 new fast charging stations along Kentucky’s interstates and parkways by the end of 2026. In September, Governor Andy Beshear cut the ribbon on the first electric vehicle fast charging station in Kentucky built with funds from the National Electric Vehicle Infrastructure Formula Program. The federally funded station is not only the first in the commonwealth to open, but the first in the Southeastern United States.
For information about Kentucky’s electric vehicle infrastructure, fast charging locations, a map of current AFCs, future high-priority routes and more, visit kyevcharging.com.
Currently, Kentucky has 132,194 registered hybrid electric vehicles, 19,647 electric vehicles, 9,187 plug-in hybrid electric vehicles and 197 electric motorcycles.
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