Explainer: Wyoming Alternative Fuels Tax
What
In July 2025 WYDOT began rolling out a program they are legislatively required to implement. Wyoming Department of Transportation (WY DOT) began sending a memo to electric vehicle station owners throughout the state of Wyoming which communicated that these station owners would be required to register their station with WYDOT and begin paying a license tax of $0.24 per gasoline gallon equivalent (GGE). One GGE of electricity is equal to 33.56 kilowatt-hours, resulting in a tax of .$007 per kWh. A group of bills, first of which was passed in 2015, requires WYDOT to collect taxes on all fuels used for over the road transportation that is used, sold, or distributed for sale for motor vehicle use in Wyoming.
Why
The purpose of collecting an alternative fuels tax through electricity sold at a charging station is to ensure those driving an electric vehicle in Wyoming are contributing to funding the upkeep of Wyoming roads, the same as gasoline and diesel vehicle owners.
How
All publicly available Level 2 and DC Fast Charging Station owners have to register each station location with the WYDOT through the Wyoming Fuels Tax Administration. The fee is $25.00 per location. At the end of each month the station owners must write a check for the amount of fuel tax owed to the state based on the amount of kWh sold the previous month.
The Impact on Station Owners
A little background on charging stations to fully explain the impact.
DC Fast Charging Stations can charge electricity at a quick rate, they were designed to allow electric vehicle owners to fuel quickly. Depending on the size of an electric vehicle’s battery and the kW capacity of the station, a vehicle can be fully charged between 20 minutes-45 minutes at a DC Fast Charging station. All DC Fast Charging Station in the state of Wyoming have networking capabilities and thus the ability to track electricity dispensed. They are akin to fueling at a gas station pump, and many are actually located at gas stations. These station owners will have the ability to track electricity and their business is situated as a fuel provider, so paying a fuel tax can be a lower administrative lift.
Level 2 Charging stations provide about 25 miles of range per hour of charging. Level 2 charging stations have historically been installed in locations where the vehicle will have a long dwell time, such as overnight, an entire work day or a long period of time to enjoy a destination location. In Wyoming Level 2 stations are located in a variety of locations:
near downtowns
at hotels and lodging accommodations
workplaces
hospitals
senior centers
car dealerships
Those who offer Level 2 charging stations often provide these stations as an amenity to their patrons and they are not situated as a fuel provider. Some of the the Level 2 charging stations are simple appliances without networking and tracking capabilities. Tracking and submitting a monthly fuel tax check is not an easy administrative lift for some of these stations owners.
This new registration and tax collection program has resulted in:
Some Level 2 stations shutting down or temporarily being shut down for costly upgrades of which the station owner may never recoup
A slower pace of new Level 2 charging stations in Wyoming
The Impact on EV Owners
Out of state EV drivers charging in Wyoming will now pay a fuel tax on the electricity they use to travel through the state of Wyoming, if they charge in Wyoming. This program ensures out of state drivers pay their fair share for the upkeep of the roads they are using.
However, EV owning Wyoming residents now have a triple tax on the electricity they use to travel on Wyoming roads. Wyoming EV owners pay a $200 electric vehicle registration fee, this was implemented in 2015 in an effort to recoup the money electric vehicle owners were not paying as they did not fuel at the pump. The $200.00 an EV owner pays is already more than they would pay in fuel taxes if they had a similar sized gasoline vehicle. YTCC has provided comment and analyzed this for many years. You can find our most recent comments on HB0024 that was introduced in the 2025 legislative session.
Current Wyoming EV Owners will pay a tax on the same electricity, for the same purpose twice and also pay sales tax, which gasoline is exempt from.
$200 electric vehicle registration decal fee
4% sales tax
.0007/kWh charging station tax
How can this program be improved?
This current electric vehicle charging station registration and alternative fuel tax collection program can be significantly improved by simply exempting Level 2 charging stations from the program. These stations charge vehicles at such a slow speed that they do not provide very much electricity and in which they could pay as little as under $1.00 per month. As Wyoming residents are already paying more than their share in fuel tax through the $200.00 registration fee, the primary audience to recoup fuel tax from are electric vehicle driving tourists or regional travelers. They are more likely to charge at a DC Fast Charging station and the state will recoup their fuel tax fees there.
Only collecting the tax at DC Fast Charging Stations is a more efficient use of time for everyone involved, including WY DOT staff members who won’t need to spend time cashing and managing low dollar tax payments.
The state of Montana passed and updated similar legislation, which is a good example for Wyoming to follow. The legislation grandfathered in older charging infrastructure, providing them a few years to determine how to collect the $.03 per kWh alternative fuel tax, they also defined a charging station as anything over 25kW, which essentially exempted Level 2 Charging stations from the tax collection as a Level 2 unit can range from 2.9 to 19.2 kW power output.
HB0145 -Removing triple taxation for resident EV drivers, to the rescue!
Representative Yin, Representative Andrew and Representative Papps have introduced a new bill to bring clarity to the Tax Administration Program and to reduce any overlap in taxes paid by Wyoming residents. The bill provides the following improvements:
Only electricity sold or dispensed at a DC Fast Charging Station requires the alternative fuel tax collection. Level 2 stations are exempt from the program.
DC Fast Charging Station owners must display the price per kilowatt hour, including all applicable fees.
The tax rate for electricity will be $.035 ( 50 times more than what it was in the interpretation from 2015)
Wyoming residents with a registered electric vehicle or a registered plug-in hybrid electric vehicle can request up to a $200.00 or $100.00 refund in taxes paid, respectively.
Electricity is exempt from a sales tax.
