Time for electric vehicle owners to pony up? Legislation to hike EV fees has a pay-per-mile option

Illinois electric vehicle owners could be reckoning with a new $320 fee or a tax on miles traveled if legislation filed in the state Senate gains traction.

“Electric vehicles are our future — ensuring we are reducing our environmental impact while connecting people where they need to go,” said Senate Transportation Committee Chair Ram Villivalam, who introduced the measure.

“Regular vehicles already pay a tax to contribute to road funding when paying for gasoline — it’s appropriate that EV owners pay their share,” the Chicago Democrat said.

Senate Bill 3566 comes as revenues from gas taxes used to fix roads are dwindling with more fuel-efficient cars and electrics. If it passes, EV owners would have two options:

• Pay a $320 annual surcharge on top of existing fees starting July 1, 2027. That registration surcharge will go up annually by the Consumer Price Index starting July 1, 2028.

• Or, join a new road usage charge program that involves reporting mileage driven and paying 1.5 cents a mile effective July 1, 2027. The fee would be capped at $320 a year and annually adjusted by the CPI.

For someone who drives the U.S. average of 13,476 miles a year, the total would be about $202, according to 2022 federal data.

The proposal filed Feb. 5 is already drawing some pushback.

“It’s a very punitive bill for electric vehicle owners or those interested in switching to an electric car,” Environmental Law and Policy Center Senior Policy Advocate Susan Mudd said.

“This bill in its current form would put Illinois into the company of the most anti-EV states in the nation,” she added.

Meanwhile, “I’m always troubled by additional tax schemes Democrats propose, especially with the threat of potential privacy issues with government vehicle tracking or monitoring and potentially a per mile tax on all vehicles when Democrats need more money later for more projects they come up with,” Republican state Rep. Jeffrey Keicher of Sycamore said.

Villivalam noted that drivers will have a choice. The legislation requires the Illinois secretary of state’s office to create procedures protecting the security of personal information and data, as well as penalties for any violations, he explained.

Oregon has offered a voluntary pay-per-mile program, OReGO, for 11 years. OReGO users can chose between installing GPS devices, taking photos of odometers or using in-car technology to record miles.

Currently, Illinois EV drivers pay $100 annually to register their autos on top of the $151 registration fee for all vehicles.

“There already is an effort to equalize, despite the fact that while EVs do contribute to road use, they’re not contributing to air pollution,” Mudd said.

State motor fuel taxes are currently 48.3 cents per gallon.

“On average, most modern cars average around 26 miles per gallon costing drivers roughly 1.8 cents per mile — EV owners are receiving a lower rate per mile on average with this surcharge than if they drove a conventional passenger vehicle,” Villivalam noted.

“EVs are heavier, causing more wear and tear on our roadways than traditional passenger vehicles,” he added. “This has caused an increased need for infrastructure improvements or repairs.”

Republican state Sen. Don DeWitte of St. Charles has some concerns about the measure. However, “the nexus of the bill is appropriate in that I think it’s important for legislators to find ways to ensure electric vehicles are paying their fair share of the burden,” he said.

Got a comment? Drop an email to mpyke@dailyherald.com.

You should know

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One more thing

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