Minnesota Department of Transportation

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Mileage-Based User Fee

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MnDOT is conducting the Minnesota Road Usage Charge Demonstration (MnRUC Demo) to explore how a road usage charge (RUC) could work as a potential solution to fund transportation in our state.

A road usage charge, or RUC, is a per-mile fee that could offer a new way to fund Minnesota’s roads. Most gas- and diesel-powered vehicles pay fuel taxes that are built into the cost of fuel at the pump. As more cars transition to electric, hybrid, or increasingly fuel-efficient versions, the fuel tax revenues that fund Minnesota’s roads, bridges, and infrastructure are becoming less reliable. At the same time, higher inflation is making construction more expensive. All of these factors make it harder than ever to fund the maintenance of our state’s roads and bridges. With RUC, drivers would pay a per-mile fee instead of the current fuel tax, which is paid by the gallon. Replacing or supplementing fuel taxes with RUC could potentially provide a more sustainable way to fund transportation in Minnesota.

The MnRUC Demo uses your car's existing technology to help us understand how RUC could work in Minnesota. If you drive an eligible vehicle made in or after 2021, your car measures how many miles you drive. After enrolling and completing a survey, participants simply drive as they normally would for 6 months, no extra steps required. At the end of the demo, participants will be asked to take a final survey to share their experience. We use strict data protection practices to keep your information private. The results will help drivers understand what they could potentially pay if RUC replaced the state fuel tax. This demo will also evaluate whether built-in vehicle technology is more efficient and less costly than other ways of reporting miles driven

Only specific vehicles can join the demo because we use special built-in vehicle technology called telematics to measure driving data. Not every car has telematics, and only some vehicles have telematics systems that work with the technology used in the MnRUC Demo. Right now, only certain Jeep, Ram, Chrysler, and Dodge vehicles from 2021 or newer have the telematics system needed to securely share information for the demo. Drivers can confirm their eligibility when they enroll in the demo.

This 6-month demo begins in March 2026 and ends in late August 2026.

We follow strict data protection practices to keep participants’ data private. The MnRUC Demo does not provide MnDOT with access to drivers’ personally identifiable data (e.g., name, VIN, license plate). The demo’s technology vendor, Via, has signed nondisclosure agreements to confirm its strict privacy practices and protection of participant data. MnDOT and its research partners—CDM Smith, the University of Minnesota, and WSB—see aggregated demo mileage information only after Via has removed any personally identifiable details. Additionally, CDM Smith and WSB will be able to view participant information in order to provide customer support during the demo.

For many states, the fuel tax is decreasing in value as fuel-powered vehicles become increasingly fuel-efficient or transition to electric and hybrid versions. About one dozen states have conducted RUC demonstrations, including California, Colorado, Delaware, Kansas, Pennsylvania, and Washington. Four states have active RUC programs: Oregon, Utah, Virginia and Hawaii.