Michigan considers new pilot program taxing vehicle mileage over fuel

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KALAMAZOO, Mich. — Michigan is considering the possible first steps toward taxing Michiganders based on the miles they’ve traveled rather than fuel put into their tanks.

The County Road Association of Michigan is taking a look at how effective its been for other states like Utah, who has already adapted the system.

With a rise of electric vehicles, state leaders are worried about the lack of money from our gas taxes, which is why they are considering a “Road Usage Charge System” or RUC.

RUC taxes drivers by the distance their vehicle travels rather than the gas it guzzles.

“I drive way too much so for me I am four, five or six vacations a year so I would much rather it be the other way as opposed to mileage,” Brad Webber, Kalamazoo resident said.

It’s far less of a hassle to pay at the pump, as Americans have for over a century, according to Webber.

“I personally think we rock with what we have been doing,” Webber said.

The idea of the program – “If you drive less, you pay less.”

For comparison, in Utah, drivers are paying just over a cent per mile.

Shirley Greer, a longtime Kalamazoo resident, is ready for the change.

“There is a lot of people like myself that don’t drive very far,” Greer said. “So that would be great for Michigan.”

Nathan Lee, PE, Director of Technology & Innovation for the Utah Department of Transportation, said they have about a 20% enrollment rate.

It’s a voluntary choice to pay by the mile in lieu of fees for vehicle registration.

“It gives people an option that they can pay for how they drive rather than having a set fee that applies to everyone,” Lee said.

Oregon was the first state to implement a type of mileage tax in 2015. Other states have followed suite include Utah, Virginia, and Hawaii.

Michigan is considering RUC as travel has evolved with more electric vehicles hitting the roads.

“The vehicle fleet in America is changing and so as it is changing especially as you think about electric vehicles, they don’t use gasoline which has been the primary source for over 100 years of collecting taxes for road improvements,” Lee said.

In the last year 78,000 vehicles were registered in the state of Michigan, according to Lee.

Of vehicles registered in the state in the last year, 35% were hybrids and 15% were EV’s.

There would be $5 million set aside for the pilot program in Michigan’s proposed state budget.



This article was originally published by a wwmt.com

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