Illinois Might Start Taxing Drivers By The Mile Instead Of By Gas

If you drive a lot in Illinois, prepare yourself.

The good news so far in 2025 is that gas for Illinoisans isn't as expensive as it was in 2024, averaging out (for now) at $3.22 per gallon.

So far, a lot of new bills have been proposed in the Illinois legislature this year, and one that might impact the gas tax.

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So here's how this proposed idea works, according to the Chicago Sun Times.

The bill would create a pilot program to explore implementing a "road usage charge", which is pretty much a tax on miles driven.

A big reason for this proposal is that the motor fuel tax (which supports road improvements, bridge work, etc. in the state) isn't bringing in as much money because a lot of cars don't need gas.

With the tollways in Illinois, drivers pay about 7 cents per mile. Under the bill, they would pay 3-4 cents per mile, on top of the tolls.

Remember, this bill is for the pilot program to see how it would work. About 1,000 drivers could sign up and report their mileage either by transponder or by taking pictures of their odometers.

Oregon and Utah already have programs similar to this. In Oregon, drivers pay a per-mile charge and get non-refundable credit for fuel tax paid.

Now, short-term, the funds from this wouldn't be enough to totally eliminate the state's fuel tax (they're the second highest in the country after California). This might help in the long-term.

Chicago Sun Times reports that Marc Poulos, executive director of Operating Engineers Local 150 who supports the bill, said to legislatures:

The road usage charge pilot program in its inception would not pay for [the state’s short term needs], but long term, we do need a solution to [how] we fund transportation in the state of Illinois

It's still early on, the bill for the pilot program has just been introduced.