Being taxed for roads not at the gas pump but based on how much you drive is one of the ideas under consideration by the state of Michigan.
It’s one of the ideas under consideration by the state.
Michigan’s road funding formula is about a century old, and road repair costs have gone up for various reasons.
At the same time, gas tax revenue is falling. So now, the state is looking at tracking everyone’s mileage and levying a road tax based on that annual mileage.
Right now, Metro Detroiters pay gas tax at the pump, which funds road projects across the state.
But our vehicles are getting about 20% better gas mileage over the last generation, cutting demand, and EV drivers aren’t paying the gas tax, so there’s even less money to fix the roads.
The road construction you’ve grown accustomed to is being paid for out of a $3 billion bond issue Michigan Governor Gretchen Whitmer issued several years ago. That borrowed money we have to pay back is running out.
So, on top of the debt, there’s less money to fund future road construction.
“They’re wrong, they’re crazy wrong,” driver Bill Randazzo.
The Michigan legislature depends on Reason Foundation Think Tank Road Tax Expert Baruch Feigenbaum, who compares the situation to a rock star on their farewell tour.
“I refer to it as a rock star on his farewell tour under the words he’s been around for a long time, but we all know the end is near, and he’s not as good as he used to be,” said Feigenbaum.
The legislature included $5 million in its latest budget to study whether to charge us per mile and track our mileage, perhaps by GPS. Joyce Edwards isn’t buying into this prospect.
“That ain’t necessary,” said Edwards. “Aint no need for doing that they be in our business.”
Michigan Republican State Representative Joe Aragona of Macomb County says a GPS isn’t the answer, but taxing EVs and hybrids is.
“So you’re paying less in taxes for roads even though EVs are heavier vehicles, so you’re putting more wear and tear on the roads,” said Aragona.
Randazzo and Edwards think the whole research project is a bad idea.
“Oh, that’s not right, not at all,” Randazzo said.
“No, they don’t need to be doing that,” Edwards said. “We need to fight this, guys; we need to do something about these gas prices, y’all.”
We won’t like it, but rest assured, something like this is coming. Feigenbaum says 30 states are considering the road fuel tax, four have already agreed, and a fifth is getting ready to.
Officials say the study will ask 20,000 Michigan drivers if they want to see the mileage tax in particular. If you’d be OK with the GPS option, which may not be popular, there’s also the option of having a mechanic sign off on the mileage you have in your car.
The study, along with another, examined whether to build toll roads across the state.