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.
Comments