Mileage-Based User Fee
What is it?
A mileage-based user fee is a new way to finance the construction and maintenance of roads based on how much you drive, rather than on how much gas you put in the tank of your vehicle. Minnesota is studying mileage-based user fees to determine if they could effectively collect enough revenue to maintain our state's roads and bridges.
Why is it needed?
Minnesota taxpayers have funded highway construction and maintenance work for years with three financing tools:
- Gas tax
- Vehicle registration fees
- Motor vehicle sales tax
These sources of revenue will, for the next decade or two, continue to effectively and dependably fund transportation projects that move people and products throughout the state. When more people start buying alternative fuel and electric vehicles, however, the gas tax will not produce the revenue needed. Read about current studies.