Michigan Information & Research Service Inc.
Michigan Information & Research Service Inc.

Whitmer, Highway Administrator Say Gas Tax Needs Replacing 

04/12/24 09:23 AM By Team MIRS

(Source: MIRS.news, Published 04/11/2024) (KALAMAZOO) - Gov. Gretchen Whitmer acknowledged Thursday that using a vehicle-miles-traveled concept and toll roads are possible replacements being discussed for the “antiquated gas tax" as officials look toward future road funding options. 

Appearing with Federal Highway Administrator Shailen Bhatt in Kalamazoo today for a large infrastructure announcement, Whitmer said the Governor’s Office is no longer talking about raising gas taxes. In 2019, Whitmer infamously proposed raising Michigan's now-30-cent-a-gallon gas tax another 45 cents. 

Now, in the era of fuel-efficient vehicles and electric vehicles, putting a surcharge on gasoline purchases to fund road repairs will be gradually less effective every year. Whitmer acknowledged Thursday. 

“I think before too long we’re going to have something on the table,” she said. 

She said toll roads could be a part of the solution, but not the total. She also said a miles-traveled option was also on the table. 

“I think that miles traveled is an important measurement for how we should be long-term looking at funding the roads,” Whitmer said. 

Bhatt said the nation's freeway system was something that even libertarians agreed needed investment because of the importance the roads represented to the nation. However, the decline of the gas tax revenue was posing a mounting problem that was being discussed nationally. He said raising the gas tax would be wildly unpopular politically. 

“Whatever is going to replace the gas tax is also going to be politically unpopular and that is the challenge, going to elected officials and saying, ‘Let’s do this politically unpopular thing’,” he said. 

He said many ideas have been kicked around the Hill and there would have to be a much larger discussion to see what would come out on top. He mentioned road usage fees through tolls, road usage charges or vehicle-miles traveled.  

He said there was funding being put in the next bipartisan infrastructure bill that would start studying what the “son or daughter” of the gas tax could look like. 

“At the end of the day, people love to drive, but they don’t like to pay for it,” Bhatt said. 

Bhatt said other states around the nation were also discussing the idea of miles traveled, but each state had different names attached, such as Vehicle-Miles Traveled in Delaware, and Road-Usage Charge in Colorado or the Mileage-Based User Fee. 

“We keep changing the name because it’s not going to be popular for privacy concerns, but at the end of the day, it’s not that much different than the gas tax,” he said. “You basically buy as much gas as you use for the most part, and this would just say you buy use of the road for how much you are traveling.” 

 

Team MIRS