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New report considers a mileage fee to fund Michigan transportation system

May 15, 2014

A new report prepared by Sustainable Mobility & Accessibility Research & Transformation (SMART) for the Michigan Environmental Council explores the potential of a mileage fee as a funding mechanism for Michigan’s transportation system. A mileage fee is a charge that motorists pay based upon the distance driven on a defined road network.

According to the report, a mileage fee, compared to the fuel excise tax, is a fairer way of assessing vehicle impact to roads. Road damage is a function of the amount of travel and the weight of the vehicle, and a mileage fee directly addresses the amount of miles traveled, an unconsidered factor in transportation finance.

Read the full article.