103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3651

 

Introduced 2/9/2024, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
New Act
630 ILCS 5/10
630 ILCS 5/36 new
5 ILCS 100/5-45.55 new
5 ILCS 100/5-45.56 new
30 ILCS 105/5.1015 new

    Creates the Electric Vehicle Charging Tax Act. Provides that a tax is imposed on the privilege of engaging in business as an electric vehicle power provider in this State. Provides that, from January 1, 2025 through January 1, 2026, the rate of tax shall be $0.06 per kilowatt hour of electric vehicle power. Provides that the rate of tax shall be increased on January 1 of each year by the percentage increase, if any, in the Consumer Price Index. Amends the Public-Private Partnerships for Transportation Act. Creates a dynamic wireless electric vehicle charging pilot program. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective January 1, 2025.


LRB103 37107 HLH 69610 b

 

 

A BILL FOR

 

SB3651LRB103 37107 HLH 69610 b

1    AN ACT concerning electric vehicles.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Electric Vehicle Charging Tax Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Consumer Price Index" means the index published by the
8Bureau of Labor Statistics of the United States Department of
9Labor that measures the average change in prices of goods and
10services purchased by all urban consumers, United States city
11average, all items, 1982-84 = 100.
12    "Department" means the Department of Revenue.
13    "Distribute" means to deliver or transfer electric power
14into the battery or other energy storage device of an electric
15vehicle at a location in this State.
16    "Electric vehicle" means any motor vehicle of the first
17division that is propelled by an electric engine and does not
18use motor fuel.
19    "Electric vehicle charging station" means any place
20accessible to general public vehicular traffic, other than a
21residence, where electric power may be used to charge a
22battery or other storage device of a licensed electric
23vehicle.

 

 

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1    "Electric vehicle power" means electrical energy that is
2distributed into the battery or other energy storage device of
3an electric vehicle and that is used to power the vehicle.
4    "Electric vehicle power provider" means a person who owns
5or leases an electric vehicle charging station.
6    "Person" means any natural individual, firm, trust,
7estate, partnership, association, joint-stock company, joint
8venture, corporation, limited liability company, or a
9receiver, trustee, guardian, or other representative appointed
10by order of any court.
 
11    Section 10. Imposition of tax.
12    (a) Beginning on January 1, 2025, a tax is imposed on the
13privilege of engaging in business as an electric vehicle power
14provider in this State. From January 1, 2025 through January
151, 2026, the tax shall be imposed at the rate of $0.06 per
16kilowatt hour of electric vehicle power that is distributed in
17this State by the electric vehicle power provider for the
18purpose of charging an electric vehicle. On January 1, 2026,
19and on January 1 of each subsequent year, the rate of tax
20imposed in this paragraph shall be increased by an amount
21equal to the percentage increase, if any, in the Consumer
22Price Index for the 12 months ending in September of the year
23in which the increase takes place. The rate shall be rounded to
24the nearest one-tenth of one cent.
25    (b) The tax shall be added to the selling price charged by

 

 

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1the electric vehicle power provider at the electric vehicle
2charging station on electric vehicle power sold in this State.
3If there is no selling price at the charging station, then the
4electric vehicle power provider shall be responsible for
5paying the tax on the electric power distributed by the
6electric vehicle charging station.
7    (c) The tax imposed shall be paid by the electric vehicle
8power provider to the Department. The electric vehicle power
9provider is liable for the payment of the electric vehicle
10power tax.
 
11    Section 15. Collection of tax. The tax imposed by this Act
12shall be collected from the purchaser by the electric vehicle
13power provider at the rate stated in Section 10 and shall be
14remitted to the Department as provided in this Act. All
15charges for electric vehicle power from an electric vehicle
16charging station are presumed subject to tax collection.
17Electric vehicle power providers shall collect the tax from
18purchasers by adding the tax to the amount of the purchase
19price received from the purchaser. The tax imposed by the Act
20shall, when collected, be stated as a distinct item separate
21and apart from the purchase price of the service subject to tax
22under this Act. However, where it is not possible to state the
23tax separately the Department may, by rule, exempt those
24purchases from this requirement so long as purchasers are
25notified by language on the invoice or notified by a sign that

 

 

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1the tax is included in the purchase price.
2    The proceeds from the tax collected under this Act shall
3be deposited into the Electric Vehicle Charging Tax Fund.
 
4    Section 20. Filing of returns. On or before the last day of
5each calendar month, each electric vehicle power provider that
6is engaged in the business of providing electric vehicle power
7during the preceding calendar month shall file a return with
8the Department, stating:
9        (1) the name of the electric vehicle power provider;
10        (2) the address of the electric vehicle power
11    provider's principal place of business and, if applicable,
12    the address of the principal place of business from which
13    the electric vehicle power provider provides electric
14    vehicle power in this State;
15        (3) the total amount of kilowatt hours distributed by
16    the electric vehicle provider in the preceding calendar
17    month;
18        (4) any deductions from the tax imposed by this Act to
19    which the electric vehicle power provider is entitled;
20        (5) the total amount of receipts received by the
21    electric vehicle power provider during the preceding
22    calendar month from the distribution of electric vehicle
23    power;
24        (6) the amount of tax due; and
25        (7) such other reasonable information as the

 

 

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1    Department may require.
2    If an electric vehicle power provider ceases to engage in
3the kind of business that makes it responsible for filing
4returns under this Act, then that electric vehicle power
5provider shall file a final return under this Act with the
6Department on or before the last day of the month after
7discontinuing that business.
8    All returns required to be filed and payments required to
9be made under this Act shall be filed and made by electronic
10means. Taxpayers who demonstrate hardship in filing or paying
11electronically may petition the Department to waive the
12electronic filing or payment requirement, or both. The
13Department may require a separate return for the tax under
14this Act or combine the return for the tax under this Act with
15the return for other taxes.
16    If the same person has more than one business registered
17with the Department under separate registrations under this
18Act, that person shall not file each return that is due as a
19single return covering all such registered businesses but
20shall file separate returns for each such registered business.
21    If the electric vehicle power provider is a corporation,
22then the return filed on behalf of that corporation shall be
23signed by at least one of the following:
24        (1) the president of the corporation;
25        (2) the vice-president of the corporation;
26        (3) the secretary of the corporation;

 

 

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1        (4) the treasurer of the corporation; or
2        (5) a properly accredited agent of the corporation.
3    An electric vehicle power provider that files a return
4under this Act shall, at the time of filing the return, pay to
5the Department the amount of tax imposed by this Act, less a
6discount of 1.75%, not to exceed $1,000 per month, which is
7allowed to reimburse the electric vehicle power provider for
8the expenses incurred in keeping records, preparing and filing
9returns, remitting the tax, and supplying data to the
10Department on request.
11    If any payment provided for in this Section exceeds the
12taxpayer's liabilities under this Act, as shown on an original
13return, the Department may authorize the taxpayer to credit
14such excess payment against liability subsequently to be
15remitted to the Department under this Act, in accordance with
16reasonable rules adopted by the Department. If the Department
17subsequently determines that all or any part of the credit
18taken was not actually due to the taxpayer, the taxpayer's
19discount shall be reduced by an amount equal to the difference
20between the discount as applied to the credit taken and that
21actually due, and that taxpayer shall be liable for penalties
22and interest on such difference.
 
23    Section 25. Registration of electric vehicle power
24providers.
25    (a) A person who engages in business as an electric

 

 

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1vehicle power provider in this State shall register with the
2Department. Application for a certificate of registration
3shall be made to the Department, by electronic means, in the
4form and manner prescribed by the Department and shall contain
5any reasonable information the Department may require. Upon
6receipt of the application for a certificate of registration
7in proper form and manner, the Department shall issue to the
8applicant a certificate of registration. Electric vehicle
9power providers who demonstrate that they do not have access
10to the Internet or demonstrate hardship in applying
11electronically may petition the Department to waive the
12electronic application requirements.
13    (b) The Department may refuse to issue or reissue a
14certificate of registration to any applicant for the reasons
15set forth in Section 2505-380 of the Department of Revenue Law
16of the Civil Administrative Code of Illinois.
17    (c) Any person aggrieved by any decision of the Department
18under this Section may, within 20 days after notice of such
19decision, protest and request a hearing, whereupon the
20Department shall give notice to such person of the time and
21place fixed for such hearing and shall hold a hearing in
22conformity with the provisions of this Act and then issue its
23final administrative decision in the matter to such person. In
24the absence of such a protest within 20 days, the Department's
25decision shall become final without any further determination
26being made or notice given.
 

 

 

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1    Section 30. Revocation of certificate of registration.
2    (a) The Department may, after notice and a hearing as
3provided in this Act, revoke the certificate of registration
4of an electric vehicle power provider who violates any of the
5provisions of this Act or any rule adopted under this Act.
6Before revocation of a certificate of registration, the
7Department shall, within 90 days after noncompliance and at
8least 7 days prior to the date of the hearing, give the
9electric vehicle power provider so accused notice in writing
10of the charge against him or her, and on the date designated
11shall conduct a hearing upon this matter. The lapse of such
1290-day period shall not preclude the Department from
13conducting revocation proceedings at a later date if
14necessary. Any hearing held under this Section shall be
15conducted by the Director or by any officer or employee of the
16Department designated in writing by the Director.
17    (b) The Department may revoke a certificate of
18registration for the reasons set forth in Section 2505-380 of
19the Department of Revenue Law of the Civil Administrative Code
20of Illinois.
21    (c) Upon the hearing of any such proceeding, the Director
22or any officer or employee of the Department designated in
23writing by the Director may administer oaths, and the
24Department may procure by its subpoena the attendance of
25witnesses and, by its subpoena duces tecum, the production of

 

 

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1relevant books and papers. Any circuit court, upon application
2either of the electric vehicle power provider or of the
3Department, may, by order duly entered, require the attendance
4of witnesses and the production of relevant books and papers
5before the Department in any hearing relating to the
6revocation of certificates of registration. Upon refusal or
7neglect to obey the order of the court, the court may compel
8obedience with the order by proceedings for contempt.
9    (d) The Department may, by application to any circuit
10court, obtain an injunction requiring any person who engages
11in business as an electric vehicle power provider under this
12Act to obtain a certificate of registration. Upon refusal or
13neglect to obey the order of the court, the court may compel
14obedience by proceedings for contempt.
 
15    Section 35. Electric Vehicle Charging Tax Fund; creation;
16distribution of proceeds. The Electric Vehicle Charging Tax
17Fund is hereby created as a special fund in the State treasury.
18Moneys in the Fund shall be used as provided in this Section:
19        (1) 80% of the moneys in the Electric Vehicle Charging
20    Tax Fund shall be transferred into the Road Fund and shall
21    be used for highway maintenance, highway construction,
22    bridge repair, congestion relief, and other highway needs;
23        (2) 20% of the moneys in the Electric Vehicle Charging
24    Tax Fund shall be used for projects related to public
25    transportation capital needs in the State; of that 20%:

 

 

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1            (A) 90% shall be transferred to the Regional
2        Transportation Authority Capital Improvement Fund for
3        use by the Regional Transportation Authority; and
4            (B) 10% shall be transferred to the Downstate Mass
5        Transportation Capital Improvement Fund to be used by
6        local mass transit districts other than the Regional
7        Transportation Authority.
 
8    Section 900. The Public-Private Partnerships for
9Transportation Act is amended by changing Section 10 and by
10adding Section 36 as follows:
 
11    (630 ILCS 5/10)
12    Sec. 10. Definitions. As used in this Act:
13    "Approved proposal" means the proposal that is approved by
14the responsible public entity pursuant to subsection (j) of
15Section 20 of this Act.
16    "Approved proposer" means the private entity whose
17proposal is the approved proposal.
18    "Authority" means the Illinois State Toll Highway
19Authority.
20    "Contractor" means a private entity that has entered into
21a public-private agreement with the responsible public entity
22to provide services to or on behalf of the responsible public
23entity.
24    "Department" means the Illinois Department of

 

 

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1Transportation.
2    "Design-build agreement" means the agreement between the
3selected private entity and the responsible public entity
4under which the selected private entity agrees to furnish
5design, construction, and related services for a
6transportation facility under this Act.
7    "Develop" or "development" means to do one or more of the
8following: plan, design, develop, lease, acquire, install,
9construct, reconstruct, rehabilitate, extend, or expand.
10    "Dynamic wireless charging" means electric vehicle
11charging by inductive charging, which allows electric vehicles
12to charge while in motion.
13    "Electric vehicle" means a motor vehicle of the first
14division that is propelled by an electric engine and does not
15use motor fuel.
16    "Maintain" or "maintenance" includes ordinary maintenance,
17repair, rehabilitation, capital maintenance, maintenance
18replacement, and any other categories of maintenance that may
19be designated by the responsible public entity.
20    "Operate" or "operation" means to do one or more of the
21following: maintain, improve, equip, modify, or otherwise
22operate.
23    "Private entity" means any combination of one or more
24individuals, corporations, general partnerships, limited
25liability companies, limited partnerships, joint ventures,
26business trusts, nonprofit entities, or other business

 

 

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1entities that are parties to a proposal for a transportation
2project or an agreement related to a transportation project. A
3public agency may provide services to a contractor as a
4subcontractor or subconsultant without affecting the private
5status of the private entity and the ability to enter into a
6public-private agreement. A transportation agency is not a
7private entity.
8    "Proposal" means all materials and documents prepared by
9or on behalf of a private entity relating to the proposed
10development, financing, or operation of a transportation
11facility as a transportation project.
12    "Proposer" means a private entity that has submitted an
13unsolicited proposal for a public-private agreement to a
14responsible public entity under this Act or a proposal or
15statement of qualifications for a public-private agreement in
16response to a request for proposals or a request for
17qualifications issued by a responsible public entity under
18this Act.
19    "Public-private agreement" means the public-private
20agreement between the contractor and the responsible public
21entity relating to one or more of the development, financing,
22or operation of a transportation project that is entered into
23under this Act.
24    "Request for information" means all materials and
25documents prepared by or on behalf of the responsible public
26entity to solicit information from private entities with

 

 

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1respect to transportation projects.
2    "Request for proposals" means all materials and documents
3prepared by or on behalf of the responsible public entity to
4solicit proposals from private entities to enter into a
5public-private agreement.
6    "Request for qualifications" means all materials and
7documents prepared by or on behalf of the responsible public
8entity to solicit statements of qualification from private
9entities to enter into a public-private agreement.
10    "Responsible public entity" means the Department of
11Transportation, the Illinois State Toll Highway Authority.
12    "Revenues" means all revenues, including any combination
13of: income; earnings and interest; user fees; lease payments;
14allocations; federal, State, and local appropriations, grants,
15loans, lines of credit, and credit guarantees; bond proceeds;
16equity investments; service payments; or other receipts;
17arising out of or in connection with a transportation project,
18including the development, financing, and operation of a
19transportation project. The term includes money received as
20grants, loans, lines of credit, credit guarantees, or
21otherwise in aid of a transportation project from the federal
22government, the State, a unit of local government, or any
23agency or instrumentality of the federal government, the
24State, or a unit of local government.
25    "Shortlist" means the process by which a responsible
26public entity will review, evaluate, and rank statements of

 

 

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1qualifications submitted in response to a request for
2qualifications and then identify the proposers who are
3eligible to submit a detailed proposal in response to a
4request for proposals. The identified proposers constitute the
5shortlist for the transportation project to which the request
6for proposals relates.
7    "Transportation agency" means (i) the Department or (ii)
8the Authority.
9    "Transportation facility" means any new or existing road,
10highway, toll highway, bridge, tunnel, intermodal facility,
11intercity or high-speed passenger rail, or other
12transportation facility or infrastructure, excluding airports,
13under the jurisdiction of a responsible public entity, except
14those facilities for the Illiana Expressway. The term
15"transportation facility" may refer to one or more
16transportation facilities that are proposed to be developed or
17operated as part of a single transportation project.
18    "Transportation project" or "project" means any or the
19combination of the design, development, construction,
20financing, or operation with respect to all or a portion of any
21transportation facility under the jurisdiction of the
22responsible public entity, except those facilities for the
23Illiana Expressway, undertaken pursuant to this Act.
24    "Unit of local government" has the meaning ascribed to
25that term in Article VII, Section 1 of the Constitution of the
26State of Illinois and also means any unit designated as a

 

 

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1municipal corporation.
2    "Unsolicited proposal" means a written proposal that is
3submitted to a responsible public entity on the initiative of
4the private sector entity or entities for the purpose of
5developing a partnership, and that is not in response to a
6formal or informal request issued by a responsible public
7entity.
8    "User fees" or "tolls" means the rates, tolls, fees, or
9other charges imposed by the contractor for use of all or a
10portion of a transportation project under a public-private
11agreement.
12(Source: P.A. 103-570, eff. 1-1-24.)
 
13    (630 ILCS 5/36 new)
14    Sec. 36. Dynamic wireless electric vehicle charging pilot
15program.
16    (a) Any transportation project undertaken under this Act
17that includes the design, development, construction, or
18reconstruction of 20 lane miles or more of a roadway is
19required to include the construction of one lane mile of
20dynamic wireless electric vehicle charging within the roadway.
21    The number of land miles shall be calculated by
22multiplying the number of lanes of roadway by the length of the
23project.
24    (b) The contractor shall design, fund, evaluate, iterate,
25test, and implement dynamic vehicle charging along a one-mile

 

 

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1stretch of roadway. This will serve as a pilot program for
2Illinois. The program shall focus on nondisruptive designs
3that are compatible with existing infrastructure. Dynamic
4wireless charging lanes shall be compatible with the entire
5range of electric vehicles, including passenger, electric
6transit buses, fleet vehicles, and light-duty, medium-duty,
7and heavy-duty vehicles. The contractor shall consider the
8performance, safety, electromagnetic compatibility, and
9interoperability in the development of the dynamic wireless
10charging lane.
11    (c) The contractor shall work closely with the responsible
12public agency and the Department throughout the design process
13and upon implementation to ensure smooth execution of the
14technology and appropriate communication to the traveling
15public.
16    (d) After the dynamic wireless charging lane has been in
17operation for one year, the contractor shall work with the
18Department and responsible public agency to evaluate the
19success, failure, and safety of the technology. Special
20consideration shall be given to the operation of dynamic
21vehicle charging in a variety of weather conditions and road
22maintenance activities.
 
23    Section 905. The Illinois Administrative Procedure Act is
24amended by adding Sections 5-45.55 and 5-45.56 as follows:
 

 

 

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1    (5 ILCS 100/5-45.55 new)
2    Sec. 5-45.55. Emergency rulemaking; Electric Vehicle
3Charging Tax Act. To provide for the expeditious and timely
4implementation of the Electric Vehicle Charging Tax Act,
5emergency rules implementing the Electric Vehicle Charging Tax
6Act may be adopted in accordance with Section 5-45 by the
7Department of Revenue. The adoption of emergency rules
8authorized by Section 5-45 and this Section is deemed to be
9necessary for the public interest, safety, and welfare.
10    This Section is repealed one year after the effective date
11of this amendatory Act of the 103rd General Assembly.
 
12    (5 ILCS 100/5-45.56 new)
13    Sec. 5-45.56. Emergency rulemaking; dynamic wireless
14electric vehicle charging pilot program. To provide for the
15expeditious and timely implementation of the dynamic wireless
16electric vehicle charging pilot program established in Section
1736 of the Public-Private Partnerships for Transportation Act,
18emergency rules implementing that program may be adopted in
19accordance with Section 5-45 by the Department of
20Transportation. The adoption of emergency rules authorized by
21Section 5-45 and this Section is deemed to be necessary for the
22public interest, safety, and welfare.
23    This Section is repealed one year after the effective date
24of this amendatory Act of the 103rd General Assembly.
 

 

 

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1    Section 910. The State Finance Act is amended by adding
2Section 5.1015 as follows:
 
3    (30 ILCS 105/5.1015 new)
4    Sec. 5.1015. The Electric Vehicle Charging Tax Fund.
 
5    Section 999. Effective date. This Act takes effect January
61, 2025.