- A study proposed in the 2025 transportation fiscal budget is set to explore the possibility of replacing the state fuel tax.
- Although car owners pay $400 a year to fix the roads, the revenue might decrease with more fuel-efficient cars.
- Video shows details about the road usage tax study and public reaction.
(The following is a transcription of the full broadcast story)
I'm your neighborhood reporter Alonna Johnson.
Do you drive a lot?
Well, with a new road study that state legislators are proposing, it might cost you a bit more money to get behind the wheel.
"I go about 500 miles or I spend about 700 dollars on gas."
Brian Badgley is one of the many drivers in our neighborhoods that shell money into their cars. And a part of that money goes to fixing our roads.
Under the current gas tax, if Badgley is like a typical car owner, MDOT says he'll pay 400 dollars a year.
But a new plan added to the six-billion-dollar transportation budget might change it all.
It's called the road usage charge study and it's a proposed alternative for paying by the gallon meaning drivers would be paying a few cents for each mile they drive.
The early reaction is mixed.
For people like Garry Seay Jr, going by the miles would be better because it gives people variation to potentially save.
"Depending on the day, I might drive more than usual and some days I don't drive at all," Seay says.
But for Wyatt Russo and Alex Phinney, going by the gallon and using the gas tax means less stress.
"If I can keep spending it by the gallon and just use my gas wisely, instead of having to worry about how many miles, I drive here and back a day, I feel like I can save more money that way," Russo says.
As for the reason why, the state says relying on the gas tax might not be sustainable for Michigan's infrastructure plan.
According to MDOT, with the amount of fuel-efficient and EV cars on the road, there may be a lesser amount of revenue needed to cover fixing them.
Now don't panic yet. This is just a study meant to explore the possibility of replacing the gas tax and seeing if it will be a good fit for Michigan. No changes to the tax are planned at this time. I'm Alonna Johnson, FOX47 News.
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