Michigan lawmakers and transportation officials are exploring a mileage-based road usage charge as a long-term solution to declining fuel tax revenues.
The proposed initiative would charge drivers based on miles traveled rather than fuel consumption, a shift supporters say is needed as electric and fuel-efficient vehicles “erode” traditional gas tax income.
A pilot program included in both the governor’s and Senate’s proposed budgets would gather feedback from residents and examine implementation strategies.
Speaking at the Capitol on Tuesday, officials from the County Road Association of Michigan and the Reason Foundation testified in support of the concept, noting that Michigan’s existing $3.5 billion bonding plan is nearing its end.
Baruch Feigenbaum of the Reason Foundation likened the gas tax to “a rock star on his farewell tour,” saying inflation and fuel efficiency have cut its buying power in half over the past 30 years. He and others emphasized the need for a system that works on all roads—not just tollways—and applies to all vehicles, including heavy-duty ones.
Collection methods could range from odometer readings to smartphone apps or in-vehicle telematics. Privacy concerns were addressed, with GeoToll CEO Ankur Agarwal assuring lawmakers that newer technologies protect user data.
If approved, the pilot would help determine how best to implement the system, how to handle out-of-state vehicles and how to engage the public in shaping future policy.
Source: Michiganadvance.com, Fox47news.com
