U.S. Department of Transportation Federal Highway Administration	Notice Subject
	Allocation of Fiscal Year (FY) 2002 Funds for Highway Use Tax Evasion Projects
	Classification Code	Date	Office of Primary Interest
	N 4510.466	October 12, 2001	HPTS

EXPIRATION DATE: June 30, 2002

1. What is the purpose of this Notice? This Notice allocates funds to the States for Highway Use Tax Evasion Projects authorized for FY 2002 pursuant to Title 23, U.S.C. Section 143 and Section 1101 of the Transportation Equity Act for the 21st Century (TEA-21), Public Law (P.L.) 105-178, and provides obligation authority for these funds. The distribution of these funds is shown on the included table.



2. What is the background information? Nine regional motor fuel tax enforcement task forces have been created under the coordination and leadership of the IRS District Offices and State revenue agencies in the lead States of California, Florida, Indiana, Massachusetts, Nebraska, New Jersey, North Carolina, Oregon and Texas. FHWA Notice N 4510.448 allocated FY 2001 funds at $25,414 to the lead States and $12,707 to other States that had expended and billed FHWA for all but 1 year's allocation of prior funds. States receiving funds obligated FY 2001 funds by June 30, 2001.



3. What is the availability of these funds?
1. The funds resulting from this allocation are available, up to the limitation amount, for obligation until June 30, 2002, at which time any amounts not obligated will be withdrawn. The funds are being made available to the States that have expended and billed the Federal Highway Administration (FHWA) for all but 1 year's allocation of Tax Compliance Project funds, i.e., $100,000 for lead task force States and $50,000 for the member States.



2. Obligation authority is provided for 100 percent of the amount allocated to the States by this Notice. The obligation authority being distributed by this Notice is to support the obligation of "nonformula" funds. Division Administrators should ensure that this obligation authority is included in any required notification of the status of funds obligated in FY 2002.



3. The Federal share for projects authorized with these funds is 100 percent.



4. The program code for these funds is Q96, and the project prefix is TCP.



4. What are the project requirements?
1. All FY 2002 funds allocated with this Notice shall be identified under program code Q96 and will follow the same Form FHWA-37 reporting procedures previously established for appropriation code 94C in February 7, 1991, memorandum to the Chief of the Program Analysis Division, subject: "FMIS Manual Prepublication Notification." Funds are available at 100 percent Federal share to the State agency responsible for enforcement of motor fuel taxes. However, as specified in 23 U.S.C. 143(b)(5), States wishing to receive funds for tax evasion projects must certify that the aggregate expenditure of funds by the State, exclusive of Federal funds, for motor fuel tax enforcement activities will be maintained at a level that does not fall below the average level of such expenditures for the last 2 fiscal years. To receive funding under this program, the State revenue agency responsible for enforcing State motor fuel taxes shall comply with the procedures established for this program published in the Federal Register Notice, dated October 8, 1998.



2. Payments to the States will follow normal Federal-aid procedures. These projects will use object code 4105.



5. What action is required? The Division Administrator may approve projects by signing the Project Agreement, Form FHWA-1548, Rev. 8/25/99 (Attachment 1) for those States that have not received tax compliance funds under TEA-21. States that have already signed a Project Agreement to include project funds in FYs 1998, 1999, 2000 or 2001, allocated under previous notices, shall sign the revised Amended Project Agreement, Form FHWA-1549, Rev. 11/25/98 (Attachment 2). In each case, one copy with original signatures shall be returned to the State, and one copy with original signatures shall be returned to the Division Office. The period of performance may also be extended, as needed, when the State and Division Office representatives sign the Amended Project Agreement.

	Original signed by:
	Mary E. Peters Federal Highway Administrator

Related Sites
TEA-21: http://www.access.gpo.gov/nara/publaw/105publ.html
Federal Register: www.access.gpo.gov/su_docs/aces/aces140.html

Attachments:
FHWA-1548, Rev. 8/25/99
FHWA-1549, Rev. 11/25/98