LANSING, MI (WTVB) – Michigan is launching the planning phase of a pilot program to test a pay-per-mile “road usage charge” system.
Backed by $7.65 million in state funding, the study is designed as a potential replacement for the state’s traditional fuel tax.
John Peracchio of the Michigan State Transportation Commission says the current formula is no longer sustainable to support road funding.
The state plans to run a six-month trial starting in February 2027 using approximately 1,000 volunteer drivers.
Managed by the consulting firm CDM Smith on behalf of the Michigan Department of Transportation (MDOT), the pilot will monitor how mileage data can be accurately tracked and processed.
Following a public education initiative later this year and legislative outreach in early 2027, researchers will compile their findings.
A final report will follow by the end of 2027.
If the system is deemed successful, any permanent transition away from the gas tax would still require future legislative approval.



The thing is if they had appropriated the funds correctly during the Engler years to present, there would be no need for the odd funding. They’re doing this because they’ve misappropriated the funds to everything but the roads. Gas tax to the roads only. For everything else. Drag it from somewhere else. Maybe the lottery that you guys use or are supposed to use for the schools. No way in hell. Will I pay a per mile fee. Watch me leave the state.
I get the idea if you don’t drive, you shouldn’t have to pay the tax. However, and more importantly, we ALL use the roads either directly or indirectly. So this unfairly puts the burden on a portion of the population. Way to go #govenorwhitless leaving this debacle on you way out.