Michigan is taking the first steps toward a new way of funding road repairs that could eventually replace the state’s 30-cent-per-gallon gas tax. State officials have launched the planning phase of a pilot program that would charge drivers based on the number of miles they drive rather than how much gas they buy.
The proposal comes as fuel-efficient and electric vehicles continue to reduce gas tax revenue. Lawmakers allocated nearly $7.65 million in 2025 to study the road usage charge concept, and a six-month pilot involving 1,000 volunteers is expected to begin in February. Officials plan to release a final report by the end of 2027.
