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How Utah’s pay-per-mile road funding system could translate in Michigan

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How Utah’s pay-per-mile road funding system could translate in Michigan


Drivers of hybrid and electric vehicles in Utah have the option to pay about 1 cent per mile driven instead of an annual registration fee.

The state is four years into its pay-per-mile pilot program, which can save some drivers money while also making up for lost gas tax revenue for vehicles that use little or no fuel. Eventually, Utah plans to enroll all vehicles in the program.

RELATEDMichigan may test out gas tax replacement using $5M pay-per-mile pilot

Michigan is considering a similar user-fee system to replace its gas tax and address its nearly $4 billion annual road funding deficit. Legislators have proposed spending $5 million to test out a voluntary program over a two-year span.

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To draw from Utah’s experience, the County Road Association of Michigan invited Utah’s director of technology & innovation to Michigan to present on the system Wednesday, June 5 in Lansing.

“As transportation changes, Utah asked what’s a solution that’s sustainable for the long term,” said Nathan Lee, who has served the Utah Department of Transportation for more than 23 years.

“For us, our program is an opportunity for people to make choices.”

The average Utah driver pays $2,464 per year between gas and fuel taxes (18 cents per gallon federal and 35 cents per gallon state). That’s way more than the average annual cost of $850-$955 for EV drivers, according to Utah’s DOT.

Michigan drivers pay the same in federal gas tax, and slightly less in state fuel tax (30 cents per gallon).

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If Michigan ditches its gas tax, what might a replacement look like?

Currently, Utah’s road usage charge system is only available to drivers of electric and hybrid vehicles. About 20% of eligible drivers have enrolled, though Lee said that rate has been rising since the 2020 implementation.

All drivers of hybrid or electric vehicles have to pay an additional vehicle registration fee annually, as is the case in Michigan ($155 on top of plate and tab fees). Those that enroll in the usage-fee program forgo that fee and instead pay 1.06 cents per mile.

“If you only drive 6,000 miles per year, you’d pay half of the fee you’d pay at registration,” Lee said. “You could drive 15,000 miles before hitting that fee, which is more than what the average driver does.”

Utah legislators initially planned to expand the program to gas- and diesel-powered vehicles as well by 2032, but Lee said he expects that timeline to be pushed back. With 4.5% of vehicles on the road being electric/hybrid, Lee noted there isn’t a significant need to rush it with gas tax still being paid by 95.5% of drivers.

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Program participants have the choice to submit a photo of their odometer monthly to report their miles driven to the state, or to allow their vehicle’s technology to automatically report miles.

Lee said there’s technology available to exclude miles driven outside state lines. Those miles account for about 6.5% of miles driven, according to aggregate level data available to the state.

As of May, Utah stopped differentiating where the miles were driven and allowing drivers to exclude their out-of-state miles. Lee said the tech could be useful down the road, and may be ahead of its time.

“The tech works great, it’s just a lot more expensive to collect that information,” he said. “If your idea is about how do I get revenue for roads, the last thing you want to do is spend a lot of money collecting information.”

Utah’s program doesn’t allow commercial vehicles to enroll at this point. Those vehicles already pay gas tax, plus a fee through the International Fuel Tax Agreement that is returned to each state based on miles traveled within their borders.

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Lee said there are ongoing conversations and pilot programs looking at ways to ensure commercial vehicles are paying their share of road usage fees in a future where fuel taxes are replaced with different revenue streams.

See how Michigan roads rate from 1 to 10

Details around Michigan’s proposed pilot program haven’t been finalized yet. However, it’s expected the voluntary pilot will start by the end of 2024 and conclude by the end of 2026.

Participants would pay a milage-based fee and receive a refund for any motor vehicle tax or vehicle registration fees paid during the study.



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The story behind our ‘one-of-a-kind’ Travel Issue cover story

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The story behind our ‘one-of-a-kind’ Travel Issue cover story


The soaring desert vistas of Canyon Point, Utah, provide the backdrop to our June 2026 cover shoot, setting the stage for a Travel Issue titled ‘The Great Escape’ – a series of ‘horizon-expanding adventures and voyages of discovery’, as Wallpaper* editor-in-chief Bill Prince describes.

The luxurious base camp for the shoot was Amangiri, a unique 600-acre estate that is part of the Aman hotel group and appears out of the ochre-coloured desert like a modernist oasis. Completed in 2008 by architects Marwan Al-Sayed, Wendell Burnette, and Rick Joy, it has become a pilgrimage for design aficionados seeking the ultimate escape: indeed, the various low-lying structures are designed to fade away into their surroundings, so that visitors feel entirely consumed by the area’s majestic – but desolate – landscapes.

The story behind our June 2026 cover story

Dress, $1,800; boots, price on request, both by Calvin Klein Collection (calvinklein.co.uk)

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(Image credit: Photography by Geordie Wood, fashion by Jason Hughes)

‘It has always been a dream to shoot at Amangiri,’ says Wallpaper* fashion and creative director Jason Hughes, who collaborated with American photographer Geordie Wood on the story. Landing in Las Vegas, the team – including model Colin Jones, who was born in Spanish Fork, Utah – travelled through Nevada and Arizona on a five-hour car journey to Amangiri, where they set up in one of the new private villas on the estate. ‘It was amazing to witness the way the landscapes changed across the journey,’ says Hughes.



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Kevin O’Leary defends his Utah data center project: ‘Think about the number of jobs’

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Kevin O’Leary defends his Utah data center project: ‘Think about the number of jobs’


Many Americans don’t like the AI data centers popping up in their communities, though Kevin O’Leary thinks that’s because they don’t fully understand them.

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O’Leary, the venture capitalist and “Shark Tank” investor who recently starred as a villainous businessman in “Marty Supreme,” said Americans have misconceptions about data centers and their environmental impact.

“It’s understanding the concerns of people, but at the same time, think about the number of jobs,” O’Leary said in a post on X on Friday.

Addressing environmental worries, O’Leary noted that he graduated from the University of Waterloo with a degree in environmental studies.

“When a group comes to me and says, ‘Look, I have concerns about water, I have concerns about air, I have concerns about wildlife,’ I totally get it,” O’Leary said.

O’Leary has clashed with residents in Box Elder County, Utah, over a new AI data center he’s backing on a 40,000-acre campus.

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County commissioners approved the project, which is also backed by Utah’s Military Installation Development Authority, on Monday despite the community opposition. O’Leary said, without providing evidence, that the criticism mainly came from “professional protesters” who were “paid by somebody.”

One major concern for residents about the data center — dubbed the Stratos Project — is that it could strain the water supply. Data centers can use millions of gallons of water each day. Increased utility bills, noise, and a drop in quality of life are also points of contention.

O’Leary said the public misunderstands the impact of data centers because they were “poorly represented” in the past, and that the technology powering them has “advanced dramatically.” He said data centers don’t use as much water as they once did and can use a closed-loop system to avoid evaporation. Data centers can also rely on air-cooled turbines as an alternative to managing the temperature of the computer arrays, he said.

A fact sheet published by Box Elder County said the project won’t divert water from the nearby Great Salt Lake, agriculture, or homes. It also says that Stratos won’t increase electricity prices or taxes.

Many residents, however, are not so sure. The Salt Lake Tribune reported on Thursday that an application to divert water from the Salt Wells Spring stream, near the Great Salt Lake and long used by a local ranch for irrigation, was rescinded after nearly thousands of Utah residents lodged complaints.

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“At some point, understanding the value of sustainability, water and air rights, indigenous rights, and making sure the constituencies understand what you’re doing is going to be more valuable than the equity you raise,” O’Leary said on X.

Anjney Midha, a Stanford University adjunct lecturer who appeared on the “Access” podcast this week, would agree with that sentiment. He said that listening to local communities and being transparent about the intentions and impacts of data centers are essential to making them work.

“My view is that if it’s not legible to the public that these data centers and the infrastructure required to unblock this kind of frontier technology progress are serving their benefit, then it’s not going to work out,” Midha said.

In a subsequent post on X on Friday, O’Leary said his project would be “totally transparent.”

“We want it to be the shining example of how you do this,” he said.

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Man arrested in Wyoming wanted for rape, domestic violence in Utah

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Man arrested in Wyoming wanted for rape, domestic violence in Utah


A man wanted for alleged rape and domestic violence in Utah was arrested in Wyoming.

He is “behind bars thanks to the work of eagle-eyed troopers with the Wyoming Highway Patrol,” WHP said on social media.

Troopers were alerted to a Be On The Look Out (BOLO) call at approximately 7 a.m. on Thursday for a suspect in a white Chrysler Seabreeze.

MORE | Crime

Troopers in Rawlins, Wyoming, spotted the vehicle just after 8:30 a.m.

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The suspect was arrested without incident and transported to the Carbon County Jail.

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