One of the ideas the state of Michigan is considering is to tax roads based on mileage rather than at the pump.
That's one of the ideas the state is currently exploring.
Michigan's road funding formula is about a century old, and the cost of road repairs has increased for a variety of reasons.
At the same time, revenue from the gas tax is falling. Now the state is considering tracking the distance traveled by each individual and imposing a vehicle tax based on that annual distance traveled.
Currently, Metro Detroit residents pay gas taxes at the pump that fund road projects across the state.
But our vehicles' fuel economy is about 20% lower than last generation, reducing demand, and electric vehicle drivers pay no gas tax, leaving even less money available for road renovations.
The road construction you've become accustomed to is being funded by a $3 billion bond issued by Michigan Gov. Gretchen Whitmer a few years ago. The borrowed money that we have to pay back is running out.
In addition to the debt, there is less money available to finance future road construction.
“They’re wrong, they’re completely wrong,” driver Bill Randazzo.
Michigan lawmakers are relying on Baruch Feigenbaum, a road tax expert at the Reason Foundation think tank, to compare the situation to a rock star on his farewell tour.
“I call him a rock star on his farewell tour, saying he's been at it a long time, but we all know the end is near and he's not as good as he used to be,” Feigenbaum said.
The Legislature allocated $5 million in its recent budget to study whether we should charge per mile and track our mileage, perhaps via GPS. Joyce Edwards doesn't believe in that prospect.
“That’s not necessary,” Edwards said. “There is no need to do that, they are in our business.”
Republican State Representative Joe Aragona of Macomb County, Michigan, says GPS isn't the solution, but taxing electric and hybrid vehicles is.
“So you pay less in taxes for roads, even though electric vehicles are heavier vehicles, which puts more wear and tear on the roads,” Aragona said.
Randazzo and Edwards think the entire research project is a bad idea.
“Oh, that’s not true at all,” Randazzo said.
“No, that’s not necessary,” Edwards said. “We have to fight this, people; We need to do something about these gas prices, y’all.”
We won't like it, but rest assured, something like this is coming. According to Feigenbaum, 30 states are considering imposing a fuel tax, four have already agreed and a fifth are preparing to do so.
Officials say the study will ask 20,000 Michigan drivers whether they want to see the mileage tax in particular. If you're okay with the GPS option, which may not be as popular, there's also the option to have a mechanic confirm the mileage you have on your car.
The study, along with another, examined whether toll roads should be built across the state.
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