Illinois Proposes Mileage-Based Road Tax: Privacy Concerns Rise Over GPS Tracking

Illinois Considers Mileage-Based Road Tax to Replace Gas Taxes

Illinois is exploring a pilot program to replace traditional gas taxes with a mileage-based road usage charge, a move driven by the growing adoption of fuel-efficient vehicles and electric cars (EVs). Lawmakers argue that as cars become more efficient, revenue from gas taxes is declining, necessitating a new approach to fund road maintenance and infrastructure.

Senate Bill 1938: A New Way to Pay for Roads

Introduced by Sen. Ram Villivalam, Senate Bill 1938—dubbed the Illinois Road Usage Charge Act—proposes a statewide pilot program to test whether drivers should pay for road use based on the number of miles they drive rather than fuel consumption. The bill aims to address the financial shortfall caused by improved vehicle fuel economy and the rise of EVs.

How Would Mileage Be Tracked?

The bill mandates that the pilot program evaluate multiple methods for measuring road usage, including at least one approach that does not rely on electronic vehicle location data. This means GPS tracking is not mandatory for all participants. Alternative methods, such as odometer reporting or mileage verification systems, could be used instead.

Privacy Protections in the Bill

The legislation requires Illinois to prioritize the collection of the minimum necessary personal information, including location data, and to establish safeguards for how that data is collected, stored, transmitted, and destroyed. Additionally, the state must study whether different systems can protect driver privacy while preventing fraud and ensuring accurate reporting.

Major Unanswered Questions and Concerns

Despite these privacy measures, significant questions remain unaddressed in the bill:

• There is no outright ban on GPS-based tracking.
• There are no hard limits on how long data can be stored.
• The bill does not restrict law enforcement or third-party vendor access to the data.
• It does not specify how future administrations might expand the program once the infrastructure is in place.

Critics argue that what begins as a simple tax based on miles driven could evolve into a broader system for monitoring where, when, and how often people drive, raising serious privacy concerns.

Existing Per-Mile Option for EV Owners in Illinois

Illinois already has another bill, SB 3566, which offers EV owners a choice: pay a flat annual fee of $320 or opt for a per-mile charge of 1.5 cents, capped at $320. However, the methods for mileage reporting have not yet been finalized, leaving room for policymakers to adjust privacy controls before the program becomes permanent.

Why This Matters for Drivers

For decades, drivers have paid taxes every time they purchase fuel for gas or diesel vehicles. As cars become more fuel-efficient and EVs gain popularity, traditional tax revenue is shrinking. The proposed mileage-based system aims to create a fairer and more sustainable funding model for road maintenance. However, the potential for expanded surveillance and data misuse remains a critical point of contention.