Michigan drivers could eventually pay for roads based on how far they drive, not how much gas they buy.

The state plans to launch a six-month pilot program in February 2027 with about 1,000 volunteers to test the concept.

Lawmakers allocated $7.65 million in fall 2025 to study a "road usage charge" as a potential replacement for the gas tax, MLive reported. Michigan's gas tax is 52.4 cents per gallon as of 2026, up from about 31 cents last year, under a new law that replaced the state's old fuel tax formula, according to the Michigan Department of Treasury. No per-mile fee has been approved. The pilot is a study, and any permanent change would require legislative action.

The pilot addresses a funding squeeze. Cars are getting better mileage and more drivers are switching to electric vehicles. That means less gas sold and less tax revenue for roads.

John Peracchio, a member of the Michigan State Transportation Commission and the pilot's advisory committee, said fuel efficiency is reducing gas tax revenue at the same time demand for road and bridge spending is rising. He spoke to News 10 on Tuesday, Sept. 8.

The gap is steep. Denise Donahue, CEO of the County Road Association of Michigan, said in an Aug. 12 News 10 report on road funding that Michigan counties need about $4.4 billion a year for roads but receive roughly $2.1 billion. Closer to home, Jim Patton with the Ingham County Road Department said his agency depends on additional funding to fix neighborhood roads.

Planning for the 18-month program began in June, led by CDM Smith, the consulting firm managing the pilot. Jennifer Roberts, the firm's national road user charge discipline lead, said the century-old fuel tax model is breaking down as the vehicle fleet evolves. A 14-member advisory committee is guiding the study.

Officials plan a public education campaign before the end of 2026 and legislative outreach in January 2027. The Michigan Department of Transportation expects to recruit volunteers later this year. A final report is due by the end of 2027.

How the state would track miles is still an open question. Options range from a simple odometer reading to a car's built-in telematics, a plug-in device or a smartphone app. The per-mile rate has not been set.

Not everyone is sold. Mid-Michigan resident Aaron Wesener, who commutes to Bay City for work and shuttles his kids between schools, told WILX on Monday, Sept. 7: "It's going to kill me. I put on a lot of miles."

Privacy is another concern. David Frank, a Michigan driver, called the mileage-tracking idea "a creative way for Big Brother to have more intrusion in our lives," according to News 10.

Four states already run road usage charge programs: Oregon, Utah, Virginia and Hawaii. Vermont is set to join them in 2027.