Transcript Document 7869696

The Buck Starts Here
Motor Fuel Attribution:
FHWA Estimation of Highway Trust
Fund Tax Receipts From Each State
Apportionments
Funds for several FHWA programs are
apportioned to the States:
Formula based
Generally made without regard to the source of
the funds
The Donor-Donee issue
Apportioned Programs
The following FHWA programs use motor
fuel data as part of the apportionment
calculation:
NHS – 30 percent diesel gallons
STP – 35 percent HA contributions
IM – 33 percent CV contributions
Minimum Guarantee
The Attribution Process
FHWA attribution supports the
apportionment process
How does FHWA calculate attribution
Why is State data necessary
Attribution
State-by-State contributions to the Federal
Highway Trust Fund are not available from
the Internal Revenue Service (IRS)
Attribution
Typical federal motor fuel taxpayer is an oil
company or oil wholesaler
8,000 are licensed with IRS
Federal tax is imposed as the fuel crosses
the rack
Where is the fuel consumed?
IRS doesn’t know
Attribution
IRS reports tax receipts (after refunds and
transfers) for each motor fuel tax type
HTF contributions from highway users in
each State is estimated using State motor
fuel data
Attribution – State Data
From State-reported motor fuel data
Measure on-highway gallons of motor fuel
Gasoline
Gasohol
Special fuels
Sum to derive the national total (by type)
Derive each State’s share of the national total
Use those shares to determine revenue shares
Attribution
For the federal truck taxes:
Tire tax
Truck and trailer retail sales excise tax
Heavy vehicle use tax
Attribution to each State is in proportion to
the highway use of special fuels
Summary
Processes:
Apportionment process
Attribution process
Importance:
State data
Motor fuel reviews