Illinois Infrastructure Plan Would Raise EV Registration Fees to $1,000/yr

[dhanson865]

The $1000 fee is just an opening bid for the negotiations, so we’ll be more accepting when the fee is set at “only” $200. That would still be tied for the highest in the country.

It's also the "OMG I can't believe it went through" price in case there isn't a enough push back. The people that proposed it would laugh and enjoy it if that happened.

Crazier legislation has made it through in the past.

 

[SkepTeach]

Similar legislation just passed here in Arkansas. Not quite as expensive, but we're a relatively poor state. All hybrid cars will now have to pay $150/yr, and EVs will have to pay $200/yr. This was an addendum to a highway funding bill. We don't have a ton of EVs here,but I suspect there are going to be a whole lot of Prius, Camry Hybrid, Accord Hybrid, etc drivers who will head to the DMV after July 1 and get quite a surprise!

 

[ChrisH]

The $1000 fee is just an opening bid for the negotiations, so we’ll be more accepting when the fee is set at “only” $200. That would still be tied for the highest in the country.

What’s the highest? WA state is jumping from $150 to $225 a year in August.

 

[Videographer]

I'm in Wisconsin; our EV surcharge is $100, which I'm willing to pay - because it's reasonably proportionate to what I *might* have paid in gas tax. My first EV, a 2012 Leaf, replaced a 2008 Prius, which I calculated generated about $65/yr in gas tax. What I find even more outrageous is that anyone could seriously consider a surcharge on hybrids. At that point it becomes a tax on being efficient, which is lunacy. Why not add fees to any ICE that gets over 30mpg? It's the same thing, all that's missing is the battery.

 

[Granny]

When are legislators going to realize that gas tax revenue will continue to decline with more fuel efficient cars.
The number 1 cause for road damage is weight. Any tax to fix roads should be based on weight and miles driven. In addition,
States need to quit using salt in the winter especially on bridges.

 

[First EV]

Just another reason to leave Illinois on top of many others also due to taxes.

 

[blanquito]

. . . Why not add fees to any ICE that gets over 30mpg? It's the same thing, all that's missing is the battery.

Shhh! You'll give them ideas!

 

[jrwaters1]

Illinois lawmakers say they’re ready to move ahead with a major road construction program. It would mean tax and fee increases on gasoline, license plates and driver’s licenses.

Owners of electric vehicles would be even harder hit: the current annual registration fee is $17.50; the new fee would be $1,000, every year.

Full article can be read here.

We pay 130 extra for EV in NC. At this price point I would not be too alarmed. We do need to pay our share for road construction etc. In 2014 the fee was 100 dollars so it has increased by 1/3. If this continues we will be talking real money. I fear we have very little power to do anything about it. We look like an easy source of income and I don’ Think we’ll will get much sympathy from anyone.. I guess it is like a reverse gas’s guzzlers tax.

 

[LEER007]

Here is the IL statute:
(625 ILCS 5/3-805) (from Ch. 95 1/2, par. 3-805)
Sec. 3-805. Electric vehicles. The owner of a motor vehicle of the first division or a motor vehicle of the second division weighing 8,000 pounds or less propelled by an electric engine and not utilizing motor fuel, may register such vehicle for a fee not to exceed $35 for a 2-year registration period. The Secretary may, in his discretion, prescribe that electric vehicle registration plates be issued for an indefinite term, such term to correspond to the term of registration plates issued generally, as provided in Section 3-414.1. In no event may the registration fee for electric vehicles exceed $18 per registration year.
(Source: P.A. 96-1135, eff. 7-21-10.)

Also, what about Hybrid or fuel efficient vehicles?

 

[badaoui51]

Has Tesla Headquarters been notified on this proposal, and if so, are they willing to support a letter-writing campaign against it?

What I have learned is politicians have a higher chance of listening to their constituents via letters.

I did not buy a Tesla with the objective (among many) to save on fuel just to have it thrown away on a 5700% tax increase, when ever other vehicle type gets only a 230% tax increase on the fuel they use. Raising taxes can be very beneficial for capital works programs, but only evenly distributed raises in taxes.

 

[Sankarnp]

Here is the IL statute:
(625 ILCS 5/3-805) (from Ch. 95 1/2, par. 3-805)
Sec. 3-805. Electric vehicles. The owner of a motor vehicle of the first division or a motor vehicle of the second division weighing 8,000 pounds or less propelled by an electric engine and not utilizing motor fuel, may register such vehicle for a fee not to exceed $35 for a 2-year registration period. The Secretary may, in his discretion, prescribe that electric vehicle registration plates be issued for an indefinite term, such term to correspond to the term of registration plates issued generally, as provided in Section 3-414.1. In no event may the registration fee for electric vehicles exceed $18 per registration year.
(Source: P.A. 96-1135, eff. 7-21-10.)

Also, what about Hybrid or fuel efficient vehicles?

Illinois lawmakers say they’re ready to move ahead with a major road construction program. It would mean tax and fee increases on gasoline, license plates and driver’s licenses.

Owners of electric vehicles would be even harder hit: the current annual registration fee is $17.50; the new fee would be $1,000, every year.

Full article can be read here.

 

[Sankarnp]

Emailed Daniel Didech, who is my representative for the Illinois assembly and he replied within minutes saying he has already made up his mind to vote "NO" on the $1000 fee.
Also emailed Terry Link (state senator), Martin Sandoval (the proposer of this stupid act), Tammy Duckworth (Democrat senator), Governor Pritzker and President Obama and Lake County democrats. All of them are pro-environment and pro-renewable energy sources apparently. No response yet from any.
Pretty upset at the randomness of the proposal and feel this is a "shock and awe" where we will be relieved when they will charge the regular $101 or proposed $149 for electric vehicles also instead of $1000 and call it fair.
It is like democrats care for the environment only when convenient.

 

[badaoui51]

Emailed Daniel Didech, who is my representative for the Illinois assembly and he replied within minutes saying he has already made up his mind to vote "NO" on the $1000 fee.
Also emailed Terry Link (state senator), Martin Sandoval (the proposer of this stupid act), Tammy Duckworth (Democrat senator), Governor Pritzker and President Obama and Lake County democrats. All of them are pro-environment and pro-renewable energy sources apparently. No response yet from any.
Pretty upset at the randomness of the proposal and feel this is a "shock and awe" where we will be relieved when they will charge the regular $101 or proposed $149 for electric vehicles also instead of $1000 and call it fair.
It is like democrats care for the environment only when convenient.

Let us know progress on your replies. I too have emailed Sandoval, as he was the author of this bill. I was going to wait to hear back in a few days before more letters come out.

 

[Mobster]

What’s the highest? WA state is jumping from $150 to $225 a year in August.

Yep..Washington state comes after us. AND our governor Inslee wants to be President..running on "I am the environmental candidate." Ugh.

 

[Rickford]

Well then you won't be doing the LLC in California or Nevada. I'm already paying $1,000 a year.

Silicon Desert... I'm new to CA and have not driven my M3 here yet, it's still in Michigan. Consequently, I have not delt with CA DMV yet so could you say a little more regarding your statement. So for my move here is on a trial basis. I'm trying to come to terms with the increased cost of just about everything compared to MI. What you said might send me back home!

 

[Zer0t]

Great let’s create disincentives to doing the right thing. The same folks that are creating this ridiculous tax are the same ones concerned about carbon emissions. I can understand some average of the gas tax paid by ICE cars because it’s for roads.

 

[Roger Keay]

Maybe this is a good idea in disguise. There is no reason that annual registration fee/flat tax should be limited to electric cars. What reason is there to maintain a system to charge based on each gallon of gasoline if a flat tax is an acceptable alternative? Think of the savings! Any politician who votes in favor of the $1,000 per year registration fee for electric vehicles can't have much of a problem imposing a flat tax rather than usage based taxes like gas taxes.

Heavy vehicles clearly cause more wear to the roads than lighter vehicles as noted by a previous poster. Some Gross Vehicle Weight (GVW) flat tax bands might be developed to introduce a measure of fairness. Owners of small, light weight vehicles would pay less than owners of huge, high GVW pick-up trucks. Small vehicles use less gas than big vehicles per mile so it is not unlike a gas tax. Electric vehicles tend to be heavier than gas vehicles due to the battery so they might have to pay more per year than similar sized gas cars. Of course, popular pick-ups and SUVs are generally heavier than cars so customers might be less inclined to buy these higher GVW vehicles. That might not be so good for car dealers who want to sell bigger, higher profit margin models. Second cars are also a problem because each vehicle will have to pay the flat tax. Some families might find ways to get rid of the second vehicle to save the operating costs and flat tax. That might not be so good for the car dealers either.

So, properly implemented and including all road vehicles, flat tax might even be good for the environment. Fewer, smaller vehicles on the road would generate less emissions. Electric vehicle owners would be treated fairly. Sounds like a win-win situation.

In all seriousness, I wrote this post for fun. The only real point deals with the arbitrary differentiation between gas and electric vehicles. If taxing electric vehicles on a yearly flat tax basis is reasonable then why not apply the same methodology to gas vehicles? If it is not fair for gas vehicles then it is not fair for electric vehicles either. Electric vehicles will have to pay their way for using public roads and finding the best method for taxing them is an unsolved problem.

 

[Sankarnp]

I had contacted Lake County democrats, who emailed be back asking to call. Called them, spoke to a polite lady who was concerned because I said I will vote for Trump in 2020 if this law passes (and I will if it they hike it even a little bit). She repeated the talking point from the proposal on how it is unfair that electric cars will not be paying their fair share for repairing the roads that are being used. Also she suggested that only the affluent buy electric cars and they can afford to pay the $1000 each year. I explained the absurdity of her comments and she recommended that I reach out to various representatives.
I just feel there will be a significant hike, maybe not to $1000 but somewhere in the middle.

 

[jeffro01]

While I agree that $1K is high, the reality is so long as the primary funding mechanism for road improvements is the gas tax, its only fair that EV owners pay "something". We get to use the road for "free"...

Jeff

 

[Sankarnp]

While I agree that $1K is high, the reality is so long as the primary funding mechanism for road improvements is the gas tax, its only fair that EV owners pay "something". We get to use the road for "free"...

Jeff

Gas tax is based on usage, so this is not fair. Why not tax based on miles driven to be "fair" to all?