Illinois considers $1,000 annual registration fee for electric vehicles

A dealer lobby group is among the bill sponsor's biggest financial contributors.

Illinois is considering levying a $1,000 annual registration fee for electric vehicles.

The state is one of many that are apparently worried that battery powered vehicles will cut into revenue that is paid by every driver of an internal-combustion vehicle when they buy taxed gasoline.

Illinois legislators have also proposed a steep hike in gas tax, potentially more than doubling to 44 cents per gallon, while registration for standard vehicles would jump from $98 to $148, according to the Chicago Tribune.

An average driver of a typical car that puts 10,000 miles on the odometer at 25 mpg would pay just $176 in gasoline taxes for a year at the $.44/mile rate. A driver would have to accumulate more than 56,000 miles in a typical car to reach the $1,000 fee paid for EV ownership.

Sponsored by Democratic State Senator Martin Sandoval, the proposed legislation aims to generate $2.4 billion for transportation funding.

Notably, Vote Smart lists the Illinois Automobile Dealers Association as Sandoval's third largest campaign finance contributor. The Chicago Auto Trade Association also appears on the list, along with General Motors. Dealer lobbyists have been pushing to limit Tesla's expansion through enforcement of franchise regulations and other pressure, though it is unclear if the IADA was involved in drafting a bill that disproportionately penalizes EV ownership.