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Road usage charges

MDOT will continue to study and eventually pilot the potential of transitioning Michigan’s primary road funding formula to a road user charge (RUC) instead of gas tax.

Learn more about the RUC study and pilot.

  • Michigan roads are funded by a mix of federal, state, and local funds. Around half of the state funding comes from the gas tax, and half from vehicle registration fees. A typical Michigan auto owner pays $400 a year to take care of our roads.

  • There are a few challenges if we continue to rely on the gas tax. Vehicles are becoming more fuel efficient, and an increasing number of vehicles on the road use no gas at all (like electric vehicles). While cleaner, more efficient vehicles are a good thing, we may not have enough money to maintain our roads in the future! People with older, less efficient vehicles pay more than those who can afford newer, more efficient ones. Many people feel there should be a fairer way to pay based on how much someone uses the roads, or the distance someone drives. 

  • No; this is just a study and pilot to understand how people feel about changing to road usage charges and how we would make sure any new system is fair, reliable and easy to manage. All changes would be required to go through a rigorous process and involve our elected officials, additional public input and new legislation.

  • This study is intended to understand whether road usage charges may be right for our state. No changes are planned at this time and participation in the pilot will be voluntary.

  • The process to implement road usage charges will require our lawmakers to pass new legislation. This process has several steps to make sure Michigan residents can have their say.

  • Many other states are exploring road usage charges and some have already implemented pilot systems. Oregon, Utah and Virginia have active systems. California, Colorado, Hawaii, Minnesota, Pennsylvania, Washington and Michigan are currently studying road usage charges.