House Transportation committee hears presentations on mileage‑based user fees; experts urge pilots to test privacy, equity and costs

The Michigan House Transportation and Infrastructure Committee heard multiple presentations on mileage‑based user fees — commonly called road usage charges, vehicle‑miles‑traveled (VMT) charges or mileage‑based user fees (MBUF) — and questions from committee members focused on privacy, collection cost, payments timing and impacts on rural and agricultural users.

Baruch Feigenbaum, senior managing director of transportation policy at the Reason Foundation, told the committee the fuel tax is losing purchasing power because of rising vehicle fuel efficiency and growing electric vehicle (EV) use. “The fuel tax is like a rock star on his farewell tour,” Feigenbaum said, arguing states need a long‑term replacement for fuel‑tax revenue. He recommended voluntary pilots that test multiple collection options — high‑tech GPS, medium‑tech mileage‑only devices and low‑tech odometer verification — and suggested an initial state rate equivalent of roughly 2¢ to 3¢ per mile for passenger vehicles, with higher rates for heavy trucks.

Feigenbaum listed five policy advantages he said favor mileage‑based charging: fairness, proportionality, self‑limiting revenue, predictability and clearer investment signals. He urged Michigan to use a pilot to answer state‑specific questions — cross‑border travel with Canada and between the Upper and…