HB1291 creates the Electric Vehicle Motor Fuel Tax Replacement Fee Act, establishing an annual fee on owners of electric vehicles registered in Illinois beginning with state fiscal years on or after July 1, 2025. The bill is framed as a replacement mechanism for motor fuel tax revenue that electric vehicles do not generate. The fee would be owed by each owner for each electric vehicle, and the amount would be calculated annually using data certified by the Department of Transportation and the Secretary of State.
Under the bill, the Department of Transportation would certify the amount budgeted for road, highway, bridge, and infrastructure maintenance, while the Secretary of State would certify the share and total number of electric vehicles registered in the state. The Department of Revenue would then publish the fee amount, notify liable owners, collect payment, and deposit the proceeds into the Road Fund. The bill also incorporates several administrative and enforcement provisions from the Retailers' Occupation Tax Act and authorizes rulemaking by the Department of Revenue in consultation with the Secretary of State and the Department of Transportation.
Impact
HB1291 would add a new annual state-imposed fee specifically on electric vehicle owners and create a new revenue stream dedicated to the Road Fund. It would not amend the Illinois Vehicle Code directly, but it would require the Secretary of State and the Department of Transportation to provide registration and budget data to the Department of Revenue each year, and it would extend tax-collection style procedures to this new fee. The practical effect would be to shift some transportation funding responsibility onto EV owners and to formalize a recurring administrative process for calculating and collecting the charge.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the bill text and caption, the measure appears to be a revenue-focused proposal intended to address transportation funding concerns associated with electric vehicles. The absence of discussion or voting history means the overall sentiment cannot be measured from the provided materials.
Contention
The main likely point of contention is the policy choice to single out electric vehicle owners for an annual fee, which supporters would view as a fair replacement for gasoline tax contributions and opponents may view as a disincentive to EV adoption. Another possible issue is the bill’s formula, which ties the fee to statewide infrastructure budgeting and the proportion of electric vehicles registered, potentially making the amount variable and difficult for owners to predict. Administrative burdens on the Secretary of State, the Department of Transportation, and the Department of Revenue may also be debated, especially regarding data sharing, notice, enforcement, and rulemaking.
Imposes additional annual registration fee for electric vehicles; reduces rate of highway fuel taxes; authorizes DOT to conduct alternative revenue feasibility study.
Imposes additional annual registration fee for electric vehicles; reduces rate of highway fuel taxes; authorizes DOT to conduct alternative revenue feasibility study.
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See HF 2678.)