A new study from the Reason Foundation and the Michigan-based Mackinac Center has found mileage-based user fees, rather than a tax on gasoline, would provide an outline for how to rethink road funding in light of diminishing returns from fuel taxes. The Reason Foundation’s Baruch Feigenbaum says this model should be tried as a pilot in Michigan. He spoke on the most recent episode of the Michigan Department of Transportation podcast, Talking Transportation.
“These mileage base used fees are really, we think, sort of the gold standard of the user pay, user benefit model, and some from some talks we’ve had with officials in Michigan, we’ve gotten some pretty positive reaction so far,” Feigenbaum said.
Feigenbaum says with vehicles becoming more fuel efficient and more electric vehicles hitting the roads, Michigan and other states will have to think about how they’re going to generate road money in a fair way.
“One electric vehicle driver may drive 5,000 miles per year. Another may drive 20,000 miles, but they’re paying the same fee. So, one of the things that we think a mileage based user fee does is provide a fair method for all drivers of all vehicles.”
Feigenbaum says there’s a misconception rural drivers would pay more than urban drivers, but actually, they would save when comparing a mileage tax with the fuel tax. He notes most rural drivers have more fuel inefficient vehicles and pay more for gas than urban drivers. He says there’s federal money available to do a pilot program in Michigan. However, he thinks it will still be at least ten years before a user fee model is fully implemented in the state.
