ROCKFORD, Ill. (WTVO) — Electric vehicle (EV) license plate renewal fees for owners in Illinois cost $251 a year, $100 more than a standard internal combustion engine (ICE) vehicle.
In 2019, the state legislature approved a $45 billion transportation bill that doubled the state gas tax to help pay for improvements to infrastructure.
But since electric vehicle owners don’t visit the gas pump, the state passed a law to put a $100 yearly tax on EVs, added on to the annual license plate renewal fee. That went into effect on July 1st, 2019.
The fee came as an alternative after Rep. Martin Sandoval’s (D-Chicago) proposed a $1,000-a-year tax on electric cars.
According to Electrek, if energy was taxed at the same rate as gasoline, a Tesla Model 3, which is rated at 130 mpge (miles per gallon equivalent), would have to drive 34,000 miles a year to make up for a $100 gas tax.
MyEv reported that the owner of an ICE vehicle that gets 24 mpg and drives 15,000 annual miles would pay around $237 a year in fuel taxes at the pump.
Electrek also calculated that the average vehicle miles traveled per year by the average Illinois driver were around 8,000.
As the automotive industry makes a shift toward electric vehicles, the Illinois Department of Transportation says it is considering taxing EV charging stations in an effort to offset the projected revenue loss from fuel sales.
According to IDOT Transportation Secretary Omer Osman, the department is looking at several ways to tax EV drivers to make up for a projected shortfall, once more EVs go on the roads.
“At some point in time down the road, maybe gradually, as the electric vehicle takes over, then someone’s gotta come up with a different mechanism for us,” said at a meeting of the Illinois News Broadcasters Association, according to WCBU.
One proposal is including a tax at the charging station, or at the dealership when a vehicle is purchased.
Nineteen states in total charge extra fees to electric vehicle owners, according to the National Conference of State Legislatures, ranging from $50 to $150.