Illinois plans to charge $ 1K for electric vehicles



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Illinois plans to increase the cost to citizens of owning an electric car at $ 1,000 a year. The registration fee is currently only $ 17.50 per year.

Wait … what happened?

This tax, as well as an increase in state gasoline tax at 44 cents a gallon (compared to the current 19 cents tax), would be used to fund road improvements in the United States. l & # 39; State. This would give Illinois the highest tax on gasoline in the country (Pennsylvania currently holds this dubious honor).

Since electric vehicle owners do not buy gasoline, state officials decided that they needed another method to raise funds. Hybrids would be exempt from these fees because they use gasoline.

In 2018, 6,400 electric vehicles were sold in Illinois, ranking seventh for a single state that year.

These fees contrast with a $ 7,500 federal tax incentive for electric car buyers. However, once a car manufacturer delivers 200,000 vehicles, this incentive decreases by 50%. Tesla has already reached this limit. But while the federal government is trying to encourage the purchase of electric and hybrid cars, Illinois seems to want to do the opposite.

An electric truck startup spokesman, Rivian, told the Chicago Tribune that his company strongly opposed this initiative.

"Imposing EV royalties that exceed 400% more than their gasoline equivalents is not only unfair, it discourages promising new technologies that will reduce our dependence on oil, reduce our emissions and promote the economy of the world." Illinois, "he said.

Tesla also expressed opposition to this new proposal.

What else?

In addition to gasoline taxes and electric vehicle ownership fees, this law would also increase the annual registration fees for state registration plates from $ 98 to $ 148.

This bill has already been passed by 9 out of 6 votes by the Illinois House Revenue and Finance Committee.

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