(WBBM NEWSRADIO) — A new study from the Illinois Economic Policy Institute (IEPI) found that surging popularity in electric vehicles means the State of Illinois will need to come up with new revenue streams to make up for lost gasoline taxes.
Illinois saw a nearly 500% increase in the number of registered electric vehicles between 2017 and August 2022, according to Mary Tyler, Transportation Director for IEPI.
Tyler said over 57,000 EVs are being driven around the state right now, and after factoring in Gov. J.B. Pritzker’s goal to have 1 million EVs on the road by 2030, she found that the state could lose $1 billion in federal and state gas taxes over one decade.
“As vehicles become more fuel efficient, we’re all … also buying less gas, which is, you know, great for the consumer but not good for our transportation revenue,” Tyler said.
Between August 2022 and December 2022, alone, she said the number of registered EVs in Illinois rose by 8,300.
With more than half of the Illinois’ transit budget funded by gas taxes, Tyler suggested the state should turn to a miles traveled tax, raise or add annual registration fee for EVs and hybrids, and tax public charging stations.
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“However much a person is traveling, using the roads and using the system, they would be charged that fee to match their use, much like many of our other utilities are charged,” she said.
Privacy concerns could stall the miles traveled tax, but Tyler said other states are working on tracking that would only record miles — not specific routes or destinations.
The non-profit research organization shared the study’s results in the hopes that policymakers will consider these options before the state falls behind in funding.
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