Illinois Could Raise EV Registration Fee To $1,000, Hike Gas Tax

A bill at the Illinois legislature proposes to raise the annual registration fee for electric vehicles (EV) from US$17.50 to US$1,000 and to more than double the gas tax from 19 cents to 44 cents per gallon, under a plan to fund infrastructure advanced by Democrat State Senator Martin Sandoval.

According to the bill, introduced at the Illinois General Assembly, owners of fully electric vehicles “shall register the vehicle for a fee of $1,000 for a one-year registration period,” under the proposal that strikes out the current “In no event may the registration fee for electric vehicles exceed $18 per registration year.”

The bill also proposes to increase significantly the gas tax in the state, as well as the license fees.

EV charger

The proponent of the bill, Martin Sandoval, argues that this is a plan to raise funding for much needed infrastructure improvements in the state, while EV owners and gasoline car owners alike are unhappy with the proposed legislation, for different reasons.

“We haven’t updated our gas tax since 1990. We haven’t had a capital bill in over 10 years. It’s time to modernize our transportation funding formula to make it sustainable and consistent,” says Sandoval, adding that “Our transportation system has been underfunded for far too long. We’ve been kicking this can down the road for decades and it’s time for us to finally step up and find a solution.”

According to Rivian, an EV developer which is considered to be a potential future rival to Tesla and which owns a factory in Illinois, the proposal for such high EV fees would discourage EV technology.

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“Imposing fees on EVs that are over 400 percent more than their gasoline powered counterparts is not only unfair, it discourages promising new technology that will reduce our dependence on petroleum, reduce emissions, and promote the Illinois economy,” Rivian spokesman Michael McHale said, as carried by Electrek.

The Citizens Utility Board (CUB) said, commenting on the Illinois proposal to hike registration fees for EVs:

“It’s punitive, it’s unfair and it goes against Illinois’ transportation trends and needs.”

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