Study Suggests Replacing Michigan's Fuel Tax With Mileage-Based User Fees

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(CBS DETROIT) -- A new study is looking into replacing Michigan's fuel tax with charging drivers for how much they use the roads.

Michiganders currently pay 27 cents per gallon of gas in fuel tax. The money goes toward road repairs in the state.

The Mackinac Center for Public Policy is proposing mileage-based user fees, stating it could help with the shortfall for road funding that stems from fuel taxes.

The report, "Michigan's Road Forward: Replacing the Fuel Tax with Mileage-Based User Fees," suggests transitioning interstates and highways to mileage-based user fees because tools, such as the multi-state E-ZPass system, "is widely used and accepted."

"Per-mile charges on these specific corridors would provide a bondable revenue stream to pay for the reconstruction and modernization of these aging highways," the report says.

Click here to read the full report.