Illinois proposes $1,000 annual fee on EVs

Illinois (Nicolas Raymond

The Illinois state legislature is considering a bill that would impose by far the highest fee on EV ownership of any US state. The legislation, introduced by Democratic Senator Martin Sandoval of Chicago, would raise the annual registration fee for electric vehicles from the current $17.50 to $1,000.

The bill, which is aimed at raising revenue to maintain transportation infrastructure, would also more than double the state’s gas tax to 44 cents a gallon, double the driver’s license fee to $60, and raise the vehicle registration fee to $148. Sandoval said his plan would raise an estimated $2.4 billion in annual transportation funding.

Democratic Governor J.B. Pritzker has expressed support for a program to upgrade the state’s infrastructure, but hasn’t endorsed a specific source of revenue. “Passing a capital bill is a top priority for the governor this legislative session,” said spokeswoman Jordan Abudayyeh. “Bipartisan working groups are discussing various components of a capital plan, including both projects and potential revenue sources, and the administration is working with federal partners and engaging local stakeholders on the needs for their communities as the process moves forward. We look forward to introducing a bill soon.”

The idea of increasing the gas tax has some Republican support, thanks to a recent amendment to the state constitution that requires transportation-related revenue to be spent only on transportation-related projects.

As of October 2018, according to the National Conference of State Legislatures, 20 states imposed a special registration fee for hybrid and/or plug-in vehicles. The highest fees are in Georgia and West Virginia, each of which charges EV drivers $200 per year.

Illinois voters can contact Governor Pritzker’s office or their state legislators to comment on the proposed bill.

Sources: Chicago Tribune, National Conference of State Legislatures

  • William

    Insane. Hard to believe this guy is a Democrat — he’s doing the Kochs’ work here. I’ll donate to any primary challengers.

  • Lance Pickup

    Whaaaah? Wow, I thought NC’s bid to raise the EV fee to $230 was crazy.

    Well I’ve said it many times before, so I’ll say it again: if a $1000 flat fee is fair for EVs, then it ought to be fair for all cars. Scrap the gas tax altogether and just charge the $1000 for all vehicles regardless of whether they are electric or gas. See how well that goes over.

    • Pinewold

      I like your thinking!

    • Joe Jackson

      Then car sales will shut down in that state & everyone will move to a neighbouring (cheaper) state. Then there would be no taxes collected at all as no population. What a great idea but would only work if all states do the same.

  • Ormond Otvos

    Gotta do somethin’! $200 might make sense, but I doubt this is FFuel-inspired at 44c/gallon for gasoline…What’s his view on federal fuel taxes, extraction taxes, etc?

  • William

    Just to put it into perspective: If the justification for this fee would be to replace gas taxes, that’s $1000 (new rate) – $17.50 (old rate) = $982.50, divided by the new gas tax rate of $0.44 a gallon = 2233 gallons; and finally, multiply by the ICE average of 26 MPG, to arrive at 58,000 miles driven per year.

    • wowlfie

      Totally biased tax to try and kill EV’s in the state nothing more by big oil and Detroit monsters of the mid-west.

  • wowlfie

    Just another reason to head West young man.

  • RunningonSouler

    If an average ICE vehicle used 400 gallons of gasoline annually, that would be $176 in gasoline taxes. So how is $1000 for an electric vehicle even close to fair?

  • Luke William

    How is there no federal pushback? Isn’t this a state grab at the federal rebate?