The Buck Starts Here Motor Fuel Attribution:

PowerPoint presentation: MFAttribution.ppt

The Buck Starts Here Motor Fuel Attribution: - Slide 1

FHWA Estimation of Highway Trust Fund Tax Receipts From Each State

Apportionments - Slide 2

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 - Slide 3

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

Table showing Apportionment Formulas for Programs Distributed Using Motor Fuel Data - Slide 4

STP (Surface Transportation Project) Program: (Title 23, U.S. Code, Statute 104(b)(3)

• Total lanes miles of Federal-aid highways 25% (Statute 104(b)(3)
• Total VMT on Federal-aid highways 40%
• Estimated tax payment attributable to highway users paid into the Highway Account of the HTF

IM (Interstate Maintenance) Program: (Title 23, U.S. Code, Statute 104(b)(4)

• Interstate system lane miles 33 1/3 %
• VMT on Interstate system 33 1/3 %
• Annual contributions to the Highway Account of the HTF attributable to commercial vehicles 33 1/3%

NHS (National Highway System) Program (Title 23, U.S. Code, Statute 104(b)(1)

• Lane miles on principal arterial routes (excluding Interstates) 25%
• VMT on principal arterial routes (excluding Interstates) 35%
• Diesel fuel used on highways 30%
• Total lane miles on principal arterial highways divided by the State's total populaiton 10%

Minimum Guarantee: (Title 23, U.S. Code, Statute 105

• Each State's share of apportionments for aggregate sum of specified programs is at least 90.5% of its percentage contributions to the Highway Accoutn of the HTF

SOURCE: U.S. Department of Transportation, Finance Federal-Aid Highways, Appendix E

The Attribution Process - Slide 5

• FHWA attribution supports the apportionment process
• How does FHWA calculate attribution
• Why is State data necessary

Attribution - Slide 6

State-by-State contributions to the Federal Highway Trust Fund are not available from the Internal Revenue Service (IRS)

Attribution - Slide 7

• 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 - Slide 8

• 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 - Slide 9

From State-reported motor fuel data

• Measure on-highway gallons of motor fuel: Gasoline, Gasohol, and 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 - Slide 10

• For the federal truck taxes: 1) Tire tax, 2) Truck and trailer retail sales excise tax, and 3) Heavy vehicle use tax
• Attribution to each State is in proportion to the highway use of special fuels

Summary - Slide 11

Processes:

• Apportionment process
• Attribution process

Importance:

• State data
• Motor fuel reviews