{"id":2656851,"date":"2026-09-09T17:37:02","date_gmt":"2026-09-09T21:37:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/whitmers-mileage-tax-hits-the-people-who-drive-the-most-michigan-just-spent-7-65m-tax-dollars-testing-it-out\/"},"modified":"2026-09-09T17:42:36","modified_gmt":"2026-09-09T21:42:36","slug":"whitmers-mileage-tax-hits-the-people-who-drive-the-most-michigan-just-spent-7-65m-tax-dollars-testing-it-out","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/whitmers-mileage-tax-hits-the-people-who-drive-the-most-michigan-just-spent-7-65m-tax-dollars-testing-it-out\/","title":{"rendered":"Whitmer&#8217;s Mileage Tax Hits the People Who Drive the Most: Michigan Just Spent $7.65M Tax Dollars Testing it Out"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">38<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwhitmers-mileage-tax-hits-the-people-who-drive-the-most-michigan-just-spent-7-65m-tax-dollars-testing-it-out%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2656851&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Michigan plans to conduct a six-month pilot program starting in February 2027, costing up to $7.65 million, to test a mileage-based alternative to the gas tax. The program, proposed by Governor Gretchen Whitmer and approved in the 2025 budget, will enroll 1,000 volunteer drivers and is managed by the Michigan Department of Transportation (MDOT). Participation will be voluntary, and any permanent changes would require new legislation.The pilot will explore four methods of tracking miles-odometer readings, in-vehicle telematics, plug-in devices, or smartphone apps-and will evaluate data security and privacy concerns. Although the study aims to consider replacing the fuel tax with a mileage charge, challenges include charging out-of-state drivers and addressing data privacy issues. The process involves technical feasibility assessments and public outreach, with potential modifications for rural and lower-income drivers. The initiative comes amid rising fuel prices and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/blue-state-democrats-face-budget-bomb-when-gas-tax-scheme-blows-up-in-their-faces\/\" title=\"Blue ... Democrats Face Budget Bomb When ... Scheme Blows Up in Their Faces\">declining gas tax revenue<\/a>, especially with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-outlines-rules-for-instant-ev-rebates-to-boost-sales\/\" title=\"Biden admin sets guidelines for instant EV rebates to spur sales.\">increasing electric vehicle adoption<\/a>, which currently contributes less to road funding due to higher registration fees. The broader goal is to find sustainable funding options for Michigan&#8217;s road maintenance and infrastructure.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><script>console.log(\"ad slot (REP_0)\")<\/script><script>console.log(\"ad slot (REP_1)\")<\/script><\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Michigan is spending up to $7.65 million on a pilot program to test a mileage-based alternative to its gas tax.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The pilot will launch in February 2027, run for six months, and enroll 1,000 volunteers, Jennifer Roberts, the road usage charge (RUC) lead at consultant CDM Smith, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.fox2detroit.com\/news\/michigan-pay-per-mile-pilot-program-road-user-charge\">told<\/a> FOX 2 Detroit. Democratic Michigan Gov. Gretchen Whitmer proposed the program, and lawmakers approved the spending cap in the 2025 budget, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/legislature.mi.gov\/documents\/2025-2026\/publicact\/htm\/2025-PA-0022.htm\">according<\/a> to the public act.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Whitmer leaves office Jan. 1, a month before the pilot is set to begin.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The Michigan Department of Transportation (MDOT) <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.michigan.gov\/mdot\/travel\/mobility\/initiatives\/road-usage-charges\">states<\/a> on its website that participation will be voluntary and \u201cno changes are planned at this time.\u201d The department adds that lawmakers would have to pass new legislation before the state could impose a permanent mileage charge.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">James Hohman, director of fiscal policy at the Mackinac Center for Public Policy, told the Daily Caller News Foundation that moving from taxpayer financing to direct user fees would be better for state residents, but only if the charge replaces the fuel tax.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">\u201cSome people within the road lobby have wanted it to be an additional revenue flow rather than a replacement,\u201d Hohman said. \u201cBut it\u2019s not a user fee if it\u2019s just an extra charge, and it would not improve efficiency and fairness if it\u2019s just another way to collect revenue.\u201d<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">A mileage charge would apply to vehicles registered in Michigan, and \u201cone of the difficulties\u201d of the model is charging out-of-state drivers and people who regularly cross state or international borders, according to FOX 2 Detroit. Out-of-state drivers currently pay Michigan\u2019s fuel tax when they buy gasoline in the state.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The MDOT study \u201cdoes model and pitch it as a replacement for fuel taxes,\u201d Hohman told the DCNF. Charging out-of-state drivers is \u201csomething they\u2019d like to do,\u201d but the Legislature would have to decide how, Hohman said.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">MDOT and Whitmer\u2019s office did not immediately respond to the DCNF\u2019s requests for comment.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The State Administrative Board <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.michigan.gov\/dtmb\/-\/media\/Project\/Websites\/dtmb\/Law-and-Policies\/SAB\/2026\/20260602-SAB-Minutes.pdf\">approved<\/a> a $6,307,178 contract with CDM Smith on June 2 that runs through Dec. 31, 2027, according to the board\u2019s minutes. That works out to more than $6,000 per pilot participant. The contract covers project management, procurement, statewide public outreach and \u201clegislative engagement\u201d as well as the pilot itself, and the board said the pilot will explore the \u201ctechnical feasibility, political palatability, and public acceptance factors needed to make RUC viable for Michigan.\u201d<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">John Peracchio, a member of the advisory committee designing the pilot and an appointee to the State Transportation Commission, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.youtube.com\/watch?v=oV1xOKBm4VY\">said<\/a> in a Feb. 4 interview with WDIV that one option is to \u201cleverage the embedded telematics\u201d already built into most new and used vehicles. \u201cGPS can get you within two meters reliably today,\u201d Peracchio said. Another option, Peracchio said, is \u201cto leverage a smart device like an iPhone, and to marry that data up with information about your vehicle.\u201d<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The committee meets next on Sept. 28 in Lansing, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.michigan.gov\/mdot\/news-outreach\/mdot-events\/2026\/09\/28\/technical-advisory-committee-on-road-usage-charges-september-2026\">according<\/a> to MDOT\u2019s events page.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The pilot will cover passenger vehicles only and will test four ways of counting miles: odometer readings, in-vehicle telematics, a plug-in device or a smartphone app, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.michigan.gov\/mdot\/travel\/mobility\/initiatives\/road-usage-charges\/meeting-minutes\/august-2026\">according<\/a> to the minutes of MDOT\u2019s Aug. 24 technical advisory committee meeting. The committee will grade the pilot on data security and privacy among other criteria, the minutes state.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">MDOT\u2019s own 2024 survey of 19,160 Michigan residents found 44 percent were \u201cnot confident that it will result in improved roads,\u201d and more than 30 percent worried about data privacy and how their miles would be counted, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.michigan.gov\/mdot\/-\/media\/Project\/Websites\/MDOT\/Travel\/Mobility\/Mobility-Initiatives\/RUC\/Michigan-RUC-Study-Public-Perception-Survey-Results.pdf\">according<\/a> to the department\u2019s report on the results. 17 percent of respondents said that they would refuse to provide mileage data, and only 25 percent called a mileage charge the fairest way to pay for roads, behind General Fund dollars at 31 percent, the report states.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Peracchio said a per-mile system \u201cis analogous to tolling,\u201d though he resists \u201cthe ugly gantries, toll tags, tag readers and video capture.\u201d<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">He also said the state could not finish both the study and the pilot by the Dec. 31, 2026, deadline in the law and would ask the Legislature for more time. A statewide system would take far longer than the pilot, he said. \u201cIf we started tomorrow, it would probably take us a decade to roll this out effectively,\u201d he said. Asked what drivers would pay per mile, he said, \u201cWe\u2019re nowhere near figuring that out.\u201d<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">\u201cIt\u2019s going to kill me. I put on a lot of miles,\u201d Aaron Wesener, a mid-Michigan resident who drives long distances for work and his children\u2019s schooling, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.wnem.com\/2026\/09\/08\/michigan-weighs-pay-by-the-mile-system-fund-roads\/\">told<\/a> WNEM.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">CDM Smith, the contractor running Michigan\u2019s pilot, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.cdmsmith.com\/en\/resources\/insights\/does-ruc-disproportionately-impact-rural-drivers\">calls<\/a> the rural objection a \u201cmyth\u201d on its website and says rural drivers could pay less under a flat mileage charge that replaces the fuel tax because they tend to own older, less efficient trucks.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Peracchio said the study would give lawmakers options on whether a rural driver \u201cshould be charged the same because I have to drive farther to get to work.\u201d He said lower-income drivers \u201cshould perhaps pay less.\u201d The state could qualify people for lower rates the way it does for government benefits, he said.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Electric vehicles cost Michigan roads approximately $50 million in expected gas tax revenue from 2019 through 2021, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/bridgemi.com\/michigan-government\/report-electric-vehicle-sales-could-cost-michigan-roads-500m-2030\">according<\/a> to Bridge Michigan. The annual shortfall could reach $95 million by 2030 if electric vehicles make up 25 percent of new sales, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.andersoneconomicgroup.com\/infrastructure-funding-the-impact-of-evs-on-michigan-roads\/\">according<\/a> to the Anderson Economic Group study for the County Road Association of Michigan that Bridge reported on in January 2023.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Electric vehicles made up 1.2 percent of vehicles on Michigan roads, a former Michigan State Police officer told the committee during public comment, according to the minutes. Michigan already <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-proposes-130-annual-fee-on-electric-vehicle-owners\/\" title=\"House proposes 0 annual fee on ...\">charges electric vehicle owners<\/a> a $267 annual fee on top of regular registration and plug-in hybrid owners $113, among the highest such fees in the nation, according to FOX 2 Detroit.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The study comes as the national average price of regular gasoline stood at $4.22 per gallon Wednesday, up from $3.19 a year earlier, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/gasprices.aaa.com\/\">according<\/a> to AAA. Brent crude topped $100 a barrel Wednesday for the first time since July as the Iran war keeps the Strait of Hormuz largely closed to tanker traffic, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/abcnews.com\/International\/live-updates\/iran-live-updates-tehran-plans-new-restricted-zone\/?id=136249116\">according<\/a> to ABC News.<b> <\/b><\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Michigan raised its motor fuel tax from 31 cents to 52.4 cents per gallon on Jan. 1 while eliminating the 6 percent sales tax on fuel, a change the Treasury Department <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.michigan.gov\/taxes\/business-taxes\/motor-fuel\/changes\" target=\"_blank\" rel=\"noopener\">calls<\/a> a swap rather than a price increase.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">A House bill introduced in March,<b> <\/b>HB 5765<b> <\/b>from Republican Rep. Jennifer Wortz of Quincy, would apply only to electric and hybrid vehicles and let owners choose between a flat annual tax and a per-mile tax of about 2.1 cents tracked by odometer, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.legislature.mi.gov\/documents\/2025-2026\/billintroduced\/House\/htm\/2026-HIB-5765.htm\">according<\/a> to the bill text. The bill would count every mile as driven in Michigan unless the owner files paperwork proving otherwise. It has cosponsors from both parties and is tied to a companion bill, HB 5766. The Legislature\u2019s website <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.legislature.mi.gov\/Bills\/Bill?ObjectName=2026-HB-5765\">shows<\/a> no reported action since the House referred it to the Government Operations Committee on March 19.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The per-mile charge becomes mandatory for electric vehicles in 2028 and is expected to cover all light-duty vehicles by 2033, the department said. Peracchio told WDIV the odometer model \u201creally works well in a place like Hawaii,\u201d but Michigan has \u201ca land bridge\u201d and must sort out reciprocity with other states.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Electric vehicle owners in Hawaii have paid either $8 per 1,000 miles, capped at $50, or a flat $50 since July 2025, with odometers photographed during annual safety inspections, <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/hidot.hawaii.gov\/blog\/2025\/06\/30\/hawaiis-state-road-usage-charge-begins-for-electric-vehicles-on-july-1\/\">according<\/a> to the state\u2019s Department of Transportation.<\/p>\n<div class=\"disclaimer\">\n<p>All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter\u2019s byline and their DCNF affiliation. 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