View from the Road

The highly discussed capital bill in Illinois has taken effect. Since most of the news coverage highlighted the increase in the motor fuel tax and funding for projects, I want to draw attention to other parts of the capital bill.

Registration fees have been increased for a whole host of vehicles. Electric vehicle registration costs, for example, went from $35 for two years to $300 annually to ensure owners of those vehicles pay their share of lane usage.

License plate fees for first division vehicles, or “B” plated trucks and small passenger vehicles, increased by $50. Larger truck and trailer registration for all classes increased $100 annually. This includes farm plates.

Changes have also been made to the fee structure for driver’s license fees and titles. The fee for a driver’s license increased from $30 to $60. Titling duplicate and replacement titles shall not exceed $155 from the current $95.

Where will the money collected from these higher fees go?

The state sales tax (5%) collected on the sale of motor fuel currently is deposited into the General Revenue Fund. Starting in July 2021, the revenue will be deposited into the funds used for road improvements. The switch will be phased in at 1% each year until the entire 5% state sales tax is dedicated to road purposes.

Meanwhile, the motor fuel tax exemption for off-road fuel use is maintained. And the Commercial Distribution Fee (CDF) on trucks would be repealed.

As you can see, the capital bill in Illinois provided a whole host of changes.

The increase of the motor fuel tax for the first time in nearly 30 years has garnered a large amount of the spotlight. But it’s important to remember the other parts of the capital bill that will impact Illinois citizens.

For a detailed look at changes to registration fees, check out the Secretary of State’s website.

Have a trucking- or transportation-related question or questions? If so, email us at ViewFromTheRoad@ilfb.organd we’ll do our best to answer each one.

Wagner serves as assistant director of transportation and local government for Illinois Farm Bureau.