ILLINOIS — Illinois lawmakers are reviewing a proposal that could replace the state’s gas tax with a mileage-based fee, igniting fierce debate over fairness, cost, and enforcement.
Senate Bill 1938, also known as the Road Usage Charge Act, would launch a pilot program to evaluate the feasibility of taxing drivers based on how far they drive — rather than how much fuel they use. The measure is currently assigned to the Senate Transportation Committee and is backed by State Sen. Ram Villivalam (D-Chicago).
Supporters See Innovation — Truckers Call It Overreach
Proponents argue that as more vehicles become fuel-efficient or electric, traditional motor fuel tax revenues are declining, requiring a new funding model for road infrastructure.
But Matt Hart, executive director of the Illinois Trucking Association, says the state already has ample revenue — and this program would bring unnecessary complexity.
“We supported the 2019 capital bill that created nearly $6 billion in road funds — $3.5 billion in the road fund and $2.3 billion in the state construction account,” Hart said. “The system is working.”
Efficiency Concerns and Administrative Costs Raised
Hart cautioned that shifting to a mileage-based tax would bring high administrative costs and serious enforcement issues, especially in a state like Illinois where millions of out-of-state vehicles pass through annually.
“Systems like tollways already spend 20–25% of revenue on administration,” Hart explained. “Fuel tax costs only about 1% to manage.”
He also noted that SB 1938’s current language lacks clarity on who the tax applies to and how much would be charged.
House Bill Also Stalls as Debate Grows
The Senate bill has a counterpart, House Bill 2963, which has been returned to the House Rules Committee after initial hearings in the House Transportation Committee.
While both bills seek to address public transit funding gaps in metro Chicago, Hart said the proposed “road usage charge” is the wrong tool for the job.
“No state has successfully implemented a mileage tax at scale,” he said. “Even Oregon’s pilot hasn’t proven viable.”
Can Illinois Enforce a Mileage Tax Across State Lines?
A major sticking point is the regional travel behavior of Illinois residents, who frequently cross into neighboring states like Indiana, Missouri, Wisconsin, Iowa, and Michigan.
“How do you track mileage fairly across state lines?” Hart asked. “It’s incredibly difficult to administer and likely inefficient.”
He concluded that while the trucking industry isn’t opposed to road investments, any plan must be cost-effective and simple.
“If we’re going to build roads and bridges, let’s do it the smartest way possible — and this isn’t it.”
Should Illinois test a tax-by-mile system as gas tax revenues fall? Or is this too costly and invasive to enforce?
Tell us your view at ChicagoSuburbanFamily.com.
