Michigan to Pilot Mileage-Based Road Tax Program Amid Declining Gas Tax Revenue
Michigan is advancing with a pilot program to explore a mileage-based road tax, a response to the diminishing gas tax revenue caused by the increasing adoption of electric and fuel-efficient vehicles. Lawmakers allocated over $7 million last year to evaluate this alternative funding mechanism. The six-month pilot program, involving 1,000 participants, is scheduled to commence in February. For approximately a century, Michigan has relied on gas taxes to fund its road infrastructure. However, as more drivers transition to electric vehicles, this traditional revenue stream is shrinking, prompting Michigan to join other states in exploring new funding models. Researchers involved in the pilot program will investigate various methods for reporting mileage to the state, including periodic odometer readings, smartphone applications, and GPS systems installed in vehicles. These options have raised concerns among some drivers regarding privacy, particularly the use of GPS tracking. 
