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Road usage charges

A drone photo of M-32 in Alpena County.

Road usage charges

About the study

In early 2026 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. MDOT began studying the perceptions and impacts of RUC on Michigan residents in 2024 and published findings in the fall of 2025.

Public Act 22 of 2025, Article 15, Part 2, Section 1005 directs MDOT to begin a RUC study and pilot program, including the development of a technical advisory committee (TAC). The public act authorizes the creation of the TAC and defines its purpose “…to guide the development and evaluation of a road usage charge study and pilot program to assess the potential and positive and negative findings for mileage-based revenue collection for this state’s roads and highways as an alternative to the fuel tax system.”

Studying road usage charges Video

Studying road usage charges

As we move toward a low-emission future with more fuel-efficient vehicles, 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. In 2024-2025, MDOT studied people's perceptions of road usage charges and how information about RUC might influence people's travel behavior.

This study explored RUC, which means that instead of paying state fuel taxes, you would pay a few cents for each mile you drive. The study included a statewide survey to gauge residents' knowledge of RUC, followed by a demonstration that evaluated different models for collecting and processing data necessary to administer a RUC program and review factors influencing a mode shift to public transit.

RUC study findings

RUC survey results

Technical Advisory Committee

Frequently asked questions (FAQs)

  • How are Michigan’s roads funded today?

  • Why can’t we just keep funding our roads like we do today?

  • Does this mean Michigan is going to implement road usage charges instead of a gas tax?

  • When will Michigan change from fuel taxes to road usage charges?

  • Who will decide if road usage charges are going happen?

  • What other states have road usage charges?