The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
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.
-
How are Michigan’s roads funded today?
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.
-
Why can’t we just keep funding our roads like we do today?
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.
-
Does this mean Michigan is going to implement road usage charges instead of a gas tax?
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.
-
When will Michigan change from fuel taxes to road usage charges?
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.
-
Who will decide if road usage charges are going happen?
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.
-
What other states have road usage charges?
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.