Michigan studies pay-per-mile road usage charge to replace gas tax

The Michigan Department of Transportation (MDOT) is researching a potential transition from fuel taxes to a road usage charge (RUC), commonly known as a pay-per-mile system. This study aims to address declining transportation revenue caused by increased vehicle fuel efficiency and the rising prevalence of electric vehicles, which do not contribute to the state's gas tax.

Currently, approximately half of Michigan's state road funding is derived from fuel taxes, with the remainder coming from vehicle registration fees. Under a proposed RUC model, drivers would pay a flat fee of a few cents for every mile driven. Data for such a program could be collected through smartphone apps, plug-in devices, or vehicle factory settings.

While MDOT has conducted research and is moving toward a voluntary pilot program, any statewide implementation would require new legislation and public input. Officials suggest that a permanent shift in the funding model could take several years to materialize through the legislative process.