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Road Usage Charges

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Department of Transportation

Road Usage Charges

MDOT is studying possible changes to how our transportation infrastructure is funded. As we move toward a low-emission future with electric vehicles and new types of fuels, we need to explore fairer, more sustainable ways to continue to fund and maintain our roads, bridges and public transit systems. 

This study explores road usage charges, which means that instead of paying state fuel taxes, you would pay a few cents for each mile you drive.

Understanding Road Use Charges

Watch the informative video to learn more about road use charges and understand three very important questions:

  • How is transportation funded today?
  • Why are we studying funding?
  • What is road usage charging?
Understanding Road Use Charges Video

Timeline


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Survey

January - March 2024

Thank you for your input! The survey is now closed. More than 19,000 Michiganders have voiced their thoughts about the fairest ways to pay for our transportation system, and we’re working to summarize the survey results.

We will begin contacting survey participants who may be eligible for the demonstration phase of the study during the summer and fall.

Please refer to the Terms and Conditions for any questions about the survey or gift cards.

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Demonstration

Fall 2024

Qualifying survey respondents who wish to remain involved with the study will be invited to participate in a demonstration to help us understand how road usage charges might work in Michigan. By participating in the demonstration, participants will be eligible for additional incentives ranging from $75 to $500.

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Next Steps

Michigan’s leaders will use this study to understand whether road usage charges may be a good fit for our state.

Frequently Asked Questions

  • 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 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. 

    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 similar systems. These states include Utah, Oregon, Virginia, and Hawaii.

     
  • How is this survey being funded?
    The survey is being funded from a grant provided by the Federal Surface Transportation System Funding Alternatives program. MDOT is using this grant, along with other state, local and private funds, to study road usage charges.

    How long does the survey take to complete?
    The survey will take approximately 10 to 15 minutes to complete. If you want to be considered for the second stage of the study (the pilot demonstration), there are additional questions that will take another five to 10 minutes. 

    I completed the survey. When will I receive my gift card?
    Please allow up to two weeks to receive your gift card. Gift cards will arrive by e-mail from Rewards@reward.tremendous.com with the subject “Via Transportation sent you a $10 reward.”

    I completed the survey and said I was interested in being part of the pilot demonstration phase. When will I hear from you?
    Participants who are selected for the pilot demonstration phase will receive an e-mail by the fall. Only some participants will be selected, so not everyone will receive an e-mail. 

    I need help completing the survey. Who can I contact for assistance?
    Participants who require mobility, visual, hearing, written, or other assistance for effective participation should contact Orlando Curry at 517-241-7462 by March 8, 2024. Forms are located on the Title VI webpage. Requests made after this timeframe will be evaluated and honored to the extent possible.

    I did not receive my gift card. Who can I contact?
    Please allow up to two weeks to receive your gift card. Gift cards will arrive by e-mail from Rewards@reward.tremendous.com with the subject “Via Transportation sent you a $10 reward.”

    If you did not receive this e-mail, please check your junk mail. If you are still having issues, e-mail MichiganRoadCharge@gmail.com using the e-mail address that you provided when you completed the survey.