Recent claims circulating on social media have suggested that Illinois may soon implement a mileage tax of 30 cents per mile driven.
However, a closer examination reveals that this is not the case.
The legislation that sought to introduce such a per-mile tax in Illinois, Senate Bill 1938, faced significant hurdles and was not voted upon by the Senate’s transportation committee during the spring session.
Furthermore, the specific 30 cents per mile figure is not mentioned in the bill itself, and reports indicate that any potential rate would likely be much lower.
So, what exactly is the proposed mileage tax in Illinois, and why is it being considered?
The mileage tax system would function as most would expect: drivers would pay a predetermined tax rate for each mile traveled within the state.
The motivation behind the mileage tax stems from the rising need for transportation funding.
Illinois boasts one of the highest gasoline tax rates in the country, which increased to $0.483 per gallon on July 1.
When combined with additional taxes from retailers and sales taxes, Illinois drivers face an average tax of 67.1 cents per gallon, second only to California.
These fuel taxes are crucial for maintaining the state’s roads and bridges, yet revenues from these taxes have not kept pace due to enhancements in fuel efficiency and the growing prevalence of electric vehicles.
Consequently, states nationwide are exploring diverse strategies to fund road maintenance, including tolls and mileage charges.
In Illinois, Senate Bill 1938 aimed to initiate a pilot program that would assess user fees based on the number of miles driven on public roads.
This pilot was designed to evaluate the feasibility of generating revenue through mileage-based taxes as a substitute for the traditional motor fuel taxes.
The program was intended to involve at least 1,000 volunteers and last a minimum of one year, with participants receiving rebates for motor fuel taxes accrued during that time.
Additionally, the proposed pricing per mile would vary depending on factors such as the time of day and the type of road being used.
One area of contention surrounding the mileage tax is how the state would track the miles driven.
Some critics argue that requiring the use of electronic tracking devices infringes on drivers’ civil liberties protected by multiple Constitutional amendments.
However, the proposed Illinois system would have allowed for various tracking methods, including the use of electronic devices or simply submitting photographs of vehicle odometers.
As for the current status of the bill, SB 1938 was first introduced by State Sen. Ram Villivalam in early February and subsequently referred to the transportation committee.
However, a vote was postponed in March, and the bill ultimately did not make it to a vote by session’s end, being re-referred to the assignments committee on June 2.
Though no specific tax rate was embedded in the proposed legislation, estimates suggest it would likely fall between three and four cents per mile driven on state roadways.
For perspective, if a driver covers 10,000 miles on Illinois roads at a three-cent rate, their total tax would amount to $300 annually.
If this same driver achieves an average fuel efficiency of 30 miles per gallon, they would also pay about $161 each year in Illinois fuel taxes.
Several other states have already implemented various forms of mileage taxes.
A report from the Tax Foundation notes that states like Oregon, Utah, and Virginia have active programs charging drivers per mile.
In Utah, the program currently permits only electric vehicle owners, who pay $0.016 per mile tracked by either an onboard device or smartphone app.
Oregon has a similar initiative where participants pay two cents per mile but receive registration fee discounts, which can range from $35 to $115 each year.
Lawmakers in Oregon are considering a new bill that would gradually increase the state’s gas tax from 40 cents to 55 cents per gallon over three years.
It also aims to raise the road usage tax to 5% of the gas tax, which would result in a new rate of 2.75 cents per mile driven.
As discussions around funding road maintenance continue, Illinois remains a part of the larger conversation but has yet to finalize any mileage tax legislation.
image source from：nbcchicago
