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Michigan Drivers Could Eventually Pay for Roads by the Mile

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LANSING, Mich. (WOWO) — Michigan is considering a major change in the way it pays for roads, with the state preparing to test a system that could eventually charge drivers based on how many miles they travel.

The proposal is known as a road usage charge.

But Michigan drivers aren’t being hit with a new mileage tax yet.

State officials are conducting a study and preparing a pilot program to determine whether charging motorists based on miles driven could eventually help replace or supplement the state’s existing gas-tax system.

About 1,000 volunteers are expected to participate in the pilot beginning in February. The test is scheduled to run for six months and continue into 2027.

The issue is becoming more pressing as vehicles become more fuel-efficient and electric vehicles become more common according to WTVG.

Michigan’s current system relies heavily on taxes collected when drivers purchase gasoline. As vehicles use less fuel to travel the same distance — and electric vehicles use no gasoline at all — the amount of revenue generated through the traditional gas-tax system can decline.

A road usage charge would take a different approach.

Instead of primarily taxing the fuel a vehicle consumes, drivers would potentially contribute based on the number of miles they drive. Under such a system, someone who drives more would generally pay more toward the roads they use.

For some Michigan drivers, that’s raising concerns about what a mileage-based system could mean for people who spend a significant amount of time behind the wheel.

Aaron Wesener, a Mid-Michigan resident, told WNEM that his daily life requires him to drive substantial distances for work and to get his children to school.

“Ah, it’s going to kill me. I put on a lot of miles,” Wesener said.

He said he works in Bay City and his children attend school in both Bay City and his local area, meaning he racks up a considerable number of miles each week.

Under the current system, Wesener said he essentially pays for road use when he fills up his vehicle with gasoline.

“Basically, I pay for what I use at the gas pump,” he said.

The possibility of tracking miles driven also concerns him.

“I have a hard time tracking my miles for an expense report let alone for the government. It’d be a real pain,” Wesener said.

The state is considering several ways to measure mileage during the pilot.

One possibility would be having drivers periodically report their odometer readings.

Other options include using technology already built into a vehicle, installing a separate device in the vehicle or using a smartphone app.

That raises another question for the pilot: how much information are drivers willing to share in exchange for participating in a mileage-based system?

Officials also need to determine how much drivers might ultimately pay per mile.

Those details have not been finalized.

Robert Schrach of Holly, Michigan, is skeptical that changing the way drivers are charged would solve the state’s larger transportation funding problems.

“I don’t think going mileage is going to fix anything,” Schrach said.

He acknowledged that electric vehicles are becoming more common but questioned whether a mileage-based charge would actually address the state’s infrastructure needs.

Schrach also said he believes Michigan drivers already pay substantial taxes.

“I don’t think it’s the best way to do it. I think we already pay enough taxes on our gas and everything. And our roads and infrastructure are still bad,” he said.

That’s one of the central questions facing state lawmakers: whether a new road-funding mechanism would generate enough revenue to make a meaningful difference while remaining fair to drivers.

The pilot program is intended to provide lawmakers with more information before any permanent change is considered.

The state is expected to examine the cost of administering a mileage-based system, how accurately miles can be measured, how drivers respond to different payment structures and privacy concerns surrounding mileage tracking.

No new per-mile charge has been approved.

Any permanent road usage charge would require action by the Michigan Legislature.

A final report on the pilot program is expected by the end of 2027.

For now, Michigan drivers don’t need to change the way they pay for gasoline or register for a new mileage system.

But the pilot could provide lawmakers with an important look at what road funding might look like in a state where more vehicles are using less gasoline — and more vehicles aren’t using gasoline at all.

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