SOUTHFIELD, Mich. (WXYZ) — Michigan is moving forward with a pilot program to study a mileage-based road tax as rising numbers of electric and fuel-efficient vehicles cut into the state's gas tax revenue.
Lawmakers earmarked more than $7 million last year to evaluate the option, and a six-month pilot program with 1,000 participants is set to begin in February.
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For roughly 100 years, Michigan has funded its roads through a tax collected at the gas pump. But as more drivers make the switch to electric vehicles, that revenue stream is shrinking. Michigan is among many states across the country exploring this option, and some have already implemented it.
Among the questions researchers plan to study is how mileage would be reported to the state. Options range from periodic odometer readings to a smartphone app to GPS systems installed in vehicles — a prospect that drew concern from drivers.
"I'm a little uncomfortable about that personally," driver Michael Sands said.
Spencer Dickhudt, another Michigan driver, said he would prefer to self-report his mileage.
"I would probably prefer to input it myself just because of the whole data thing. It would be nice for people not to see everywhere that I've been," Dickhudt said.
Barry Brown, a Michigan driver who expressed skepticism about the concept, echoed those concerns.
"They need to find another way, especially not GPS tracking, I'm tracked enough already," Brown said.
Dickhudt said he sees the logic behind a mileage-based approach.
"It seems like a fair way to make sure that everyone that uses the roads is paying for them to help keep them maintained and in shape," Dickhudt said.
He also raised a question about how out-of-state drivers would be taxed under such a system.
"We have a lot of tourists who come to Michigan, like from other Midwest states... how are we going to get the tax for them using the roads if their cars aren't registered here," Dickhudt said.
The shift to a mileage-based tax would still likely be years away. In the months ahead, officials plan to conduct more public outreach and education. An advisory committee meets monthly, with the next meeting scheduled for Sept. 28.
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