How to Accommodate State Energy Taxes? – ZEF Energy

Understanding State Energy Taxes and Adjusting Your Rates

In some states, owners of public EV chargers are required to pay a state energy tax for every kilowatt-hour (kWh) sold to the public. While ZEF does not remit these taxes on your behalf, ZEFNET makes it simple to calculate the amount owed. To determine your tax liability, follow these steps:

Run a Monthly or Sessions Report in ZEFNET for the applicable time period.
Multiply the total kWh dispensed by the state tax rate (if it is calculated per kWh).

Adjusting Your Rates for State Taxes and ZEF’s Service Fee

If your charger uses a per kWh billing rate, you can adjust your rate to account for both state taxes and ZEF’s 10% service fee. Use the following formula:

[Your Current Rate] + ([State Tax Rate] ÷ 0.9) = [Your New Rate]

Example:

Current rate: $0.30/kWh
State tax rate: $0.03/kWh

Calculation:
$0.30 + ($0.03 ÷ 0.9) = $0.33 (rounded down) or $0.34 (rounded up)

Comparing Revenue Scenarios

1. Pre-Tax Rate

Rate: $0.30/kWh
Driver cost for 10 kWh: 10 kWh × $0.30 = $3.00
Revenue after ZEF’s service fee (90%): $3.00 × 90% = $2.70

2. Adjusted Rate (Rounded Down)

Rate: $0.33/kWh
Driver cost for 10 kWh: 10 kWh × $0.33 = $3.30
Revenue after ZEF’s service fee: $3.30 × 90% = $2.97
State tax (10 kWh × $0.03): $0.30
Net revenue: $2.97 − $0.30 = $2.67

3. Adjusted Rate (Rounded Up)

Rate: $0.34/kWh
Driver cost for 10 kWh: 10 kWh × $0.34 = $3.40
Revenue after ZEF’s service fee: $3.40 × 90% = $3.06
State tax (10 kWh × $0.03): $0.30
Net revenue: $3.06 − $0.30 = $2.76

By adjusting your rates accordingly, you can ensure compliance with state tax requirements while maintaining predictable revenue. You can make these adjustments in ZEFNET Billing. For assistance, please contact ZEF support.