Illinois Drops Punitive EV Tax

The Illinois legislature has reduced a proposed $1,000 USD registration fee targeted at electric cars. The fee, seen as a punitive EV tax, was met with opposition from automakers and electric-car advocates. The new proposed fee is $248 USD.

The goal of the original registration fee was to help fund highways which are funded with gas taxes in Illinois. The new registration fee on gas cars was increased to $148. And significantly the state’s gas tax doubled to 38 cents per gallon.

As the number of EVs increases, the debate of how they should help fund the roads they use isn’t easily resolved.