Michigan awards $6.3M contract to study replacing fuel taxes with Road User Charge
What happened
Michigan Department of Transportation awarded a $6.3 million contract to CDM Smith to study a Road User Charge (RUC). This study will examine replacing traditional fuel taxes with a per-mile tax and include a pilot version. Representative Matt Maddock expressed concern that the contract lacks independent analysis because CDM Smith already sells pay-per-mile tax systems.
Why it matters
The state of Michigan is considering shifting its primary transportation revenue source from fuel taxes to a user-based fee structure. This initiative involves CDM Smith, a company that supports the transition to what it calls “sustainable user-based fees”.
Michigan Department of Transportation oversees state transportation projects in Michigan.
Who's involved
- MichiganState considering regulatory changes, specifically RUC, that could replace traditional fuel taxes.
- Michigan Department of TransportationGovernment agency that awarded the $6.3 million contract for the feasibility study.
- CDM SmithCompany awarded the contract to conduct the feasibility study and pilot version of the mileage tax.
- Matt MaddockPolitician who questioned the independence of the study due to CDM Smith's existing business in the tax sector.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- General MotorsSpeculative
Fleets might face increased operational costs if the per-mile tax is implemented.
- MichiganSpeculative
The state might shift its primary transportation revenue source from fuel taxes to RUC.
- CDM SmithSpeculative
The company might secure a significant revenue stream from the $6.3 million contract.
Keep exploring
Part of
MDOT oversees state transportation projects in Michigan.Also in this story
- MDOT approved signage for House of Flavors, but local funding is required for implementation.
- MDOT in Michigan is facing calls from lawmakers to halt surveillance agreements regarding the use of ALPR technology on state trunklines.
- MDOT reviewed the installation history of a wall involving Clark.
- MDOT is funding 80% of the necessary bridge replacement project on Beitner Road, which is required due to washout.
The entities involved
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Michigan
state of the United States of America
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Michigan Department of Transportation
government agency in Michigan
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CDM Smith
company in Boston, United States
Nothing else this week.