Just one piece of the puzzle.
Every column about the Road Usage Charge Act (House Bill 2963) – which would begin to explore shifting Illinois from a per-gallon gas tax to assessments based on mileage driven – draws reader response. After a broad overview on March 19, Tuesday’s column addressed the question of whether Illinois has a mechanism for making money off of charging for electric vehicles. The short answer is no.
Among the responding emailers was DeKalb reader DH: “Electric vehicles are charged an additional $100 per year on car registration for (I presume) road maintenance as they do not purchase gas ($251 vs. $151). That is the equivalent of the sales tax on about 400 gallons of gas. I also have to pay taxes on the electricity used to charge my car, which goes into general funds.
“So the idea that those people who drive electric vehicles are not paying taxes like those who drive gas cars is simply wrong.”
We had a good exchange, in which I acknowledged many factors when calculating the expense of buying and owning an EV in Illinois. (And gently reminded Tuesday’s focus was specifically on the issue of a direct tax on charging with that money applied to road funds as the closest possible analog to the gas tax.)
Private passenger vehicle ownership accounts for only some of the overall economic picture. The entire puzzle is so complex that the state launched a robust website dedicated to the EV industry. Located at ev.illinois.gov, the site has a tab for “consumers” detailing programs like $4,000 rebates for EV purchases under the Climate and Equitable Jobs Act – the cap is $1,500 for electric motorcycles – the federal Clean Vehicle rebate and ComEd incentive programs.
Absent from that page is a link to the EV license plates guide on the Secretary of State’s website, which confirms there is an extra $100 registration fee “in lieu of the payment of motor fuel taxes.” Of that, the Road Fund gets $99, and the remainder “shall be deposited into the Secretary of State Special Services Fund.”
ComEd’s website lists almost 50 Level 2 home chargers with a price range from $400 to $2,500. The utility also offers rebates up to $3,750 for the purchase and installation of such chargers, and it promotes hourly pricing for EV customers who might realize monthly bill savings by scheduling charges between 1 and 5 a.m.
Most of these calculations address an individual owner’s expenses and not the way the state leverages vehicle usage to fund transportation projects, but they are important personal considerations.
Illinois is long overdue in reinventing many state and local funding mechanisms. We should all be open to considering changes that improve transparency and increase efficiency.
• Scott T. Holland writes about state government issues for Shaw Local News Network. He can be reached at sholland@shawmedia.com.
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