The South Carolina Department of Revenue recently determined in a letter ruling that sales of electricity at an electric vehicle charging station are taxable. The taxpayer was a company that owned and operated electric vehicle charging stations. Customers paid the taxpayer for electricity based on charging time, a session fee, and an idling fee if the vehicle was left connected to the charger for longer than it took to charge the vehicle.
South Carolina taxes retail sales of electricity. Here, the Department found that sales of electricity to customers at a charging station qualified as taxable retail sales of electricity. Charges associated with sales of the electricity (e.g., charging fees, session fees, and idling fees) were also taxable when sold with the electricity as gross proceeds of electricity sales. The Department also explained that sales of electricity to the company for resale to charging station customers qualified as nontaxable sales for resale.