Illinois EV owners pay an additional $100 for license plate renewal

ROCKFORD, Ill. (WTVO) – Electric vehicle (EV) license plate renewal fees for Illinois owners are $251 per 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 fund infrastructure improvements.

However, because EV owners don’t go to the gas pump, the state passed a law that imposes a $100 annual tax on EVs, which is in addition to the annual tax License plate renewal fee. This came into effect on July 1, 2019.

The fee came as an alternative after Rep. Martin Sandoval (D-Chicago) proposed a $1,000 annual tax on electric cars.

Corresponding electrif energy were taxed at the same rate as gasoline, a Tesla Model 3 rated at 130 mpge (miles per gallon equivalent) would have to drive 34,000 miles per year to offset a $100 gas tax.

MyEv reports that the owner of an ICE vehicle that gets 24 mpg and drives 15,000 annual miles would pay about $237 a year in fuel taxes at the pump.

Electrek also calculated that the average vehicle miles driven per year by an average driver in Illinois was approximately 8,000.

As the auto industry transitions to electric vehicles, the Illinois Department of Transportation says it is considering it Taxation of charging stations for electric vehicles in an effort to offset the projected loss of revenue from fuel sales.

According to IDOT Transport Minister Omer Osman, the department is looking at several ways to tax EV drivers to make up for a projected shortage once more EVs hit the roads.

“Eventually, maybe gradually, as electric vehicles take over, someone will have to come up with another mechanism for us,” the Illinois News Broadcasters Association meeting said WCBU.

One suggestion is to include a tax at the charging station or at the dealership when purchasing a vehicle.

A total of nineteen states levy additional fees on electric vehicle owners, ranging from $50 to $150, according to the National Conference of State Legislatures.