The Colorado Department of Revenue has issued a General Information Letter (GIL) regarding whether electricity sold at electric vehicle charging stations by entities other than electric utilities is subject to Colorado sales tax.
The GIL is in response to a question posed by a company that operates charging stations within Colorado. The company is not a public electric utility. It purchases electric services from electric utilities that collect sales tax on the sales of the electric services. The company subsequently provides electric vehicle charging to its customers for a fee.
Per the GIL, fees for the use of electric vehicle charging stations are generally not subject to Colorado sales tax. Colorado imposes sales tax on “electric service, whether furnished by municipal, public, or private corporations or enterprises…” “Electric service” commonly means the regular or ongoing delivery of electricity by a utility through the electrical grid to a customer’s real property location.
The one-time sales of electric vehicle charging provided by the company do not fall within the common meaning of “electric service.” As a result, the fees for electric vehicle charging stations are not subject to Colorado sales tax. However, charging station operators that are not making taxable sales must pay Colorado sales tax on the electric service that they purchase. (GIL 25-002, Colorado Department of Revenue, February 10, 2025)