ILLINOIS — State Rep. Marcus Evans, (D-Chicago) has just introduced House Bill 2864 which would create a per-mile road usage charge pilot program in the state of Illinois.
The bill would amend the Motor Fuel Tax Law by providing registered owners of a motor vehicle the option to pay a $0.021 per-mile road usage charge, in lieu of the taxes imposed under the Motor Fuel Tax Law. This per-mile tax would replace the user’s 19-cent per gallon motor fuel tax.
The Motor Fuel Tax Law would be amended by adding Section 2e as follows:
(35 ILCS 505/2e new) Sec. 2e. Per-mile road usage charge pilot program.
(a) Beginning on January 1, 2020, a person wishing to pay the per-mile road usage charge imposed under this Section must apply to the Department of Transportation on a form prescribed by the Department. The Department shall approve a valid and complete application submitted under this Section if:
(1) the applicant is the registered owner or lessee of a motor vehicle;
(2) the motor vehicle is equipped with a method selected pursuant to this Section for collecting and reporting the metered use by the motor vehicle of the highways in the State;
(3) the motor vehicle has a gross vehicle weight rating 20 of 10,000 pounds or less; and
(4) approval does not cause the number of subject vehicles active in the program on the date of approval to exceed 5,000, of which no more than 1,500 may have a rating of less than 17 miles per gallon and no more than 1,500 may have a rating of at least 17 miles per gallon and less than 22 miles per gallon, such ratings to be determined pursuant to a method established by the Department.
Approval of an application under this Section subjects the applicant to the requirements of this Section until the person ends the person’s voluntary participation in the road usage charge program by notifying the Department and paying any outstanding amount of road usage charge for metered use by the person’s subject vehicle.
(b) The registered owner of a subject vehicle shall, in lieu of the taxes imposed under this Law, pay a per-mile road usage charge for metered use by the subject vehicle of the highways in this State. The per-mile road usage charge is $0.021 per mile. The Department of Transportation shall, by rule, establish the methods for recording and reporting the number of miles that subject vehicles travel on highways. When taking action under this subsection, the Department shall consider:
(1) the accuracy of the data collected;
(2) privacy options for persons liable for the per-mile road usage charge;
(3) the security of the technology;
(4) the resistance of the technology to tampering;
(5) the ability to audit compliance; and
(6) other relevant factors that the Department deems important.
The Department shall provide the persons liable for the per-mile road usage charge the opportunity to select a method from among multiple options for collecting and reporting the metered use by a subject vehicle.
(c) As used in this Section:
“Department” means the Department of Transportation.
“Subject vehicle” means a motor vehicle that is the subject of an application approved pursuant to this Section.
Illinois still applies its sales tax to motor fuel, something only a handful of other states do.
Oregon has been testing the VMT model for more than a decade in two separate pilot programs. Volunteers pay a 1.5-mile-per-gallon fee in lieu of the state’s gas tax. Mileage is determined either with a device installed in the participants’ vehicles or through a GPS-based system.
California, Colorado, Connecticut, Delaware, New Hampshire, Pennsylvania, Oregon, Washington and others are studying this or have implemented pilot programs.
At the beginning of the year the Internal Revenue Service issued the 2019 standard mileage rates. Beginning on January 1, 2019, the standard mileage rates for the use of a car, van, pickup or panel truck became:
- 58 cents per mile for business miles driven (up from 54.5 cents in 2018)
- 20 cents per mile driven for medical or moving purposes (up from 18 cents in 2018)
- 14 cents per mile driven in service of charitable organizations (currently fixed by Congress)