Michigan Considers Mileage-Based Road Usage Fee Pilot Program

Michigan lawmakers are considering replacing the state’s 27.2 cents-per-mile gas tax with a mileage-based road usage fee, according to an article from Bridge Michigan. Democrats in the State House and Senate have added $5 million to proposed $6.8 billion transportation budget bills for a pilot program, reports Lauren Gibbons.

“Under the Senate proposal, the state would create a 19-member technical advisory committee that would help design a pilot program for the Michigan Department of Transportation to implement by June 2025,” Gibbons writes. The committee would assess the “ease and cost” of recording mileage and collecting taxes.

States like Oregon, Utah, Virginia have implemented similar mileage-based programs that allow motorists to opt in. Likewise, if the final budget includes funding for it, the Michigan program will be completely voluntary. Critics of these types of program object on a privacy basis, as they often use GPS data collection devices, though the proposed pilot would direct the state to connect a minimal amount of personal data.

“MDOT would lead the pilot for one year and report findings to the Legislature by the end of 2026, including cost, privacy issues, data collection technology, feasibility and participant acceptance,” reports Gibbons.