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Muda69

Illinois might start charging $1,000 per year to own an electric vehicle: 'It's outrageous'

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https://www.chicagotribune.com/business/ct-biz-electric-vehicle-fee-illinois-20190509-story.html

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A proposed hike in Illinois’ annual registration fee for electric vehicles, from $17.50 to $1,000, is being called unfair by current EV owners, and a sales disincentive by manufacturers — just as the new technology is beginning to gain broader traction.

“It’s outrageous,” said Nicoletta Skarlatos, 56, of Chicago, who bought a Tesla Model S five years ago. “I thought Illinois was progressive and would want to encourage EV ownership.”

Aimed at raising money to make overdue road improvements across Illinois, the proposed legislation would also more than double the state’s gas tax to 44 cents a gallon and raise the registration fee for standard vehicles to $148, from $98, among other elements.

But the kicker is a nearly 60-fold increase in the electric vehicle registration fee — one that is sure to cause sticker shock across a nascent segment of the auto industry, which has depended on government incentives to entice early adopters.

Hybrids and plug-in electric hybrids, which both use gas to supplement electric power, are not included in the $1,000 fee proposal.

The justification for the dramatic hike? Electric vehicles don’t provide the state with any gas tax revenue.

“There’s definitely a push, because electric vehicles don’t pay any gas taxes,” said Pete Sander, president of the Illinois Automobile Dealers Association.

Tesla said it opposes the Illinois fee increase. Electric truck startup Rivian, which is slated to begin production at its factory in downstate Normal next year, was more outspoken.

“Imposing fees on EVs that are over 400 percent more than their gasoline-powered counterparts is not only unfair, it discourages promising new technology that will reduce our dependence on petroleum, reduce emissions, and promote the Illinois economy,” Rivian spokesman Michael McHale said.

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A fair and justifiable increase?

 

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1 hour ago, Muda69 said:

Fair?  - NO.

Justifiable?  - They tried......and failed (IMHO)

https://www.chicagotribune.com/politics/ct-met-illinois-senate-gas-tax-hike-20190508-story.html

The legislation, introduced this week by Democratic Sen. Martin Sandoval of Chicago, would more than double the state’s gas tax to 44 cents a gallon, double the driver’s license fee to $60 and raise the vehicle registration fee to $148. The driver’s license fee is now $30; the vehicle registration fee is $98.

It also would significantly hike the registration fee for electric vehicles, from $17.50 to $1,000. Greater fuel efficiency and an increasing number of electric vehicles on the road has cut into the revenue available to the state to fix transportation infrastructure.

In addition, in an effort to provide a stable source of transportation funding, the gas tax and registration fees could continue to creep up every year under a formula tied to the rate of inflation.

Sandoval said his plan would raise an estimated $2.4 billion in annual transportation funding for Illinois. Illinois’ gas tax has been 19 cents per gallon since 1990, and the state’s last large-scale infrastructure improvement program was approved a decade ago.

Seriously - They are trying to do things to cut emissions, save the planet, incentive's like using the subway, but the minute something like EV's gains some traction, let's tax it more, because we lose revenue somewhere else.......

 

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At some point alternative fuel vehicles are going to grow to numbers that matter. With a fair chunk of our roads being funded by fuel taxes, there's obviously going to be an issue. And no doubt as cars become more hi-tech, roads themselves will follow a similar path and most likely become more costly. Cummins announced just this week the opening of a new facility in Columbus dedicated to electric propulsion. So there is a paradox coming, but timing is everything, and this ain't the time. My guess is Illinois facing already tight money issues, saw a chance to add everything they can. 

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The Indiana BMV currently charges $150 for electric vehicles, and I believe $50 for hybrids.

 

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