LANSING, Michigan – The Michigan Department of Transportation announced a pilot program that will test a road‑usage charge system, potentially shifting a portion of road funding from the traditional gasoline tax to a mileage‑based model. About 1,000 volunteer drivers are expected to participate when the study begins in February, with the trial running for six months and extending into 2027.
Why a mileage‑based charge is being explored
Michigan’s current funding relies heavily on taxes collected at the pump. As newer vehicles become more fuel‑efficient and electric vehicles (EVs) require no gasoline, the state’s gas‑tax revenue is projected to shrink. A road‑usage charge would instead assess drivers based on the number of miles they travel, meaning those who drive more would contribute more toward road maintenance.
What the pilot will test
Officials are evaluating several methods for measuring mileage. Options include periodic odometer reporting, leveraging built‑in vehicle telematics, installing a dedicated device, or using a smartphone application. The study will also gauge driver willingness to share mileage data and assess the administrative costs of running such a system.
Local reactions
Amidst the planning, some Michigan residents voiced concerns. Aaron Wesener, a Mid‑Michigan commuter who drives between Bay City and his children’s schools, said the idea could become a financial burden. “It’s going to kill me. I put on a lot of miles,” Wesener told local media. He added that tracking mileage for personal expense reports is already challenging, let alone for a government program.
Robert Schrach of Holly expressed skepticism about the policy’s effectiveness. “I don’t think going mileage is going to fix anything,” Schrach said. He noted that Michigan drivers already pay significant taxes on gasoline and questioned whether a mileage charge would generate enough revenue to improve the state’s deteriorating roads.
Potential benefits and challenges
Supporters argue that a mileage‑based system could provide a more stable and equitable funding source as the vehicle fleet evolves. By charging based on actual road use, the model aims to align contributions with wear and tear, potentially easing the fiscal pressure on the state’s transportation budget.
Critics, however, raise privacy concerns and worry about the administrative burden of collecting and verifying mileage data. The pilot will also explore how different payment structures—such as per‑mile rates versus flat fees—might affect driver behavior and overall revenue.
Next steps
No permanent per‑mile charge has been approved. Any lasting change would require legislation by the Michigan Legislature. A final report summarizing the pilot’s findings is expected by the end of 2027, giving lawmakers a clearer picture of whether a mileage‑based charge could supplement or replace the gas tax.
For now, Michigan drivers will continue to pay for roads through gasoline purchases, but the upcoming study could shape the future of transportation funding in a state where more vehicles are using less—or no—gasoline.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.