Michigan is considering implementing mileage-based user fees (MBUFs) to replace the traditional fuel tax, which has been the primary funding mechanism for state highways for over a century. Due to the rise in electric and hybrid vehicles and improved fuel efficiency, the fuel tax is no longer reliable, losing 50% of its purchasing power in the last 30 years.
MBUFs, also known as road usage charges, would apply to all vehicles, charging drivers between 2.0 to 2.5 cents per mile. Heavy-duty trucks would pay higher rates due to their greater impact on road wear. Alternatives like general funds, sales taxes, tire taxes, and tolling were also considered but found less viable. MBUF is seen as a promising long-term solution for sustainable highway funding.
Reporting for WGRT – Choze Powell
