Dalton Seeks Clarity from DOR on EV Charger Taxation
DALTON, Mass. — The two electric vehicle charging stations at the Community Recreation Association have been delayed in energizing to clarify whether the town needs to tax consumers.
As a municipality, the town does not pay taxes on its services. However, some states require charging a tax on electricity usage, Green Committee member Antonio Pagliarulo said during last week's committee meeting.
The town is waiting to hear back from the state Department of Revenue on this matter. Once they know if charging a tax is required, the billing and payment system for the EV chargers can be adjusted to add that cost.
In addition, two weeks ago, Pagliarulo said the town accountant informed him that the DOR does not permit prepayment for the 5-year software package for operation and maintenance.
"When we submitted the bid and the contract all through this last year, I've always said it's a prepaid software package for five years through ChargePoint and a five-year operation and maintenance–that is not permitted," he said.
Universal Electric installed the chargers at the CRA, which they buy directly from state-approved vendors, in this case, ChargePoint.
"All municipalities are limited to one-year prepayment for most goods and services, and I believe Universal will be agreeable to updated language," Pagliarulo said in a follow-up.
Town Manager Thomas Hutcheson explained later that the contract with Universal was updated to reflect a one-year prepayment, and the hope is to have the remaining four years covered through the revenue the chargers generate.
Background on the CRA EV Chargers:
During a town meeting in May 2023, voters allocated $42,000 to fund the Green Committee's request for two charging stations.
The project was delayed for two months due to paperwork requirements for the state Department of Environmental Protection. However, this turned out to be a blessing in disguise.
The town originally had planned a level 2 station with a 7.2 kilowatt system, but the Green Committee could upgrade it to a 19.6kW system at no additional cost, Pagliarulo said previously.
This upgrade more than doubles the charging speed, but charging times vary based on vehicle type and weather conditions.
Tags: electric vehicle,
