Presentations
Motor Fuel Workshop
Highway Statistics Seminar – 2011
Federal Highway Administration
Office of Highway Policy Information
Presenters: Mike Dougherty & Bryant Gross
Workshop Highlights
- Workshop Agenda:
| Introduction | Importance of data for Attribution |
Issues – Discussion |
| Future – "The Crystal Ball"? |
Follow-up and Closing |
Staff Introduction
- The Motor Fuel Staff are:
- Mike Dougherty: Motor Fuel Tax Evasion and IFTA
- Marsha Reynolds: Motor Fuel Data
- Bryant Gross: Motor Fuel Data
- Ralph Erickson: Chief, Highway Finance and Motor Fuel Division
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U.S. Department of Transportation Federal Highway Adminsitration |
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Motor Fuel Overview
- Why do we collect the data?
- Title 23, 420.105 (b) > Federally mandated
- Motor fuel data is reported from State DOT's, DOR's, or DMV's to FHWA
- However, DOT's are responsible for reporting and accuracy of the data
- Data for both 551M and 556 is required under UPACS in FUELS/FASH software
Importance of Effective Motor Fuel Data Reporting
- Gives States an effective system (data) to use for State policy, and providing data for requests within the State.
- Important in Attribution: Gallons of fuel used in the State is used as part of formula in the HTF distribution of funds.
FHWA Reviews
- Motor Fuel Reviews
- Review State reporting procedures
- Risk assessment
- State visits by FHWA HQ staff
- Typically, 3 per year
- Improves communication
FHWA Reviews
- Motor Fuel Reviews
- Review State reporting procedures
- Risk assessment
- State visits by FHWA HQ staff
- Typically, 3 per year
- Improves communication
The Big Picture
- What's important about motor fuel data, attribution, and the apportionment
process?
- The amounts of funding involved
- The distribution of those funds, or Your State's Share
Overview
- FHWA estimates how much federal highway tax money comes from each State
- Compared to how much each State receives from FHWA
- Derives a "for every dollar in, how much does my State receive" or Donor-Donee ratio
- This is extremely important
- To Congress, FHWA, and the States
- That the data be correct
Federal Highway Account Taxes FY 2010 – (Thousands of Dollars)
| $20,337,827 | — | Gasoline | 67.40% |
| $7,069,769 | — | Special Fuel | 23.43% |
| $886,623 | — | Federal Use Tax | 67.40% |
| $1,562,325 | — | Trucks and Trailers | 5.18% |
| $318,251 | — | Tires | 1.05% |
| $ 30,174,795 | — | Total | 100% |
The Attribution Process
- FHWA attribution supports the apportionment process
- How FHWA calculates attribution (Fuel, VMT, etc. in formula used by FHWA)
- The role of State data (system for accurately reporting the data, accession planning)
Attribution I
- State-by-State contributions to the Trust Fund were not available from the IRS (just total funds)
- With EXSTARS, that data is coming on-line
Attribution II
- Typical fuel taxpayer is an Oil company or wholesaler
- There are over 8,000 licensed with IRS
- IRS reports total receipts (after refunds and transfers) for each fuel type
Attribution III
- HTF contributions from highway users in each State are estimated using State motor fuel data
- States report motor fuel taxed (each State has procedure)
- FHWA uses established methodologies to derive a consistent, compatible dataset for attribution
FHWA Estimation of Non-Highway Gasoline
- Estimate off-highway uses of:
- Agriculture
- Construction
- Industrial and commercial
- Small boat
- Aviation gasoline
- Compare to State-reported amounts
- Use one or the other
Methodology Reasonable
- The data is less than perfect
- Different motor fuel laws in each State
- Tax Systems designed for
- Revenue collection, not data collection
- State agency interest levels
- Tax evasion
- Less than perfect reporting on form FHWA-551M
How Attribution Works
- From adjusted State motor fuel data
- Measure on-highway gallons of motor fuel (Gasoline – Special fuels)
- Sum to derive the national total (by type)
- Derive each State's share of the national total
- Use those shares (based on gallons) to determine revenue shares
Attribution and Data Quality
- FHWA's goal is an accurate data-set for attribution
- FHWA performs actions aimed at improving accuracy of State reporting
Issues/Best Practice Sharing
- Motor Fuel Reviews:
- FHWA Division Initiates and works with State partners
- "Meet the Players" – gives a chance to meet players from State DOT, State Revenue, and FHWA.
- Issues/problems addressed
- Gives a chance for FHWA to see how data is collected within the State
- Gives momentum for better data quality, and problem solving among the agencies.
Who proposed the Turkey as the national bird?
(Trivia 1)
Benjamin Franklin
He felt the bird was smart, majestic, and independent.
Winner gets a free chocolate Turkey!
Issues / Best Practice Sharing (2)
- Documentation (the process / the Job):
- Provides new State staff resources for quickly filling Motor Fuel Reporting positions Can be shared and stored for easy access
- Provides for: 1) Resources 2) Contacts, 3) Data procedure, etc.
Issues / Best Practice Sharing (3)
- Data Accuracy:
- Gasoline gallons reported on 551M, times the tax rate, should fall within +/- 5% of reported receipts off form 556 (fuel tax receipts). Special fuel with +/- 10%. (See the form EVAL in your packets)
- IFTA data (motor carrier fuel use) within the State, needs to reported accurately
EVAL – Sample
State Issues:
- Issues from the States will go here >
- Funding (lack of)
- Staff Rollover
- Need for Documentation
- Communication between agencies
- Multiple tasks (FHWA reporting only part of job)
Verification of the Data
- February: First Verification memo sent out to Divisions/States to review previous year data (i.e. in Feb. 2012, review of 2010 data)
- Tables MF-33GA (gasoline use), MF-33SF (SF use), MF-20 (On Highway/Off Highway Use) and FE-9 (funds attributed to States from HTF)
- As States resubmit, data is updated at FHWA
- Final Verification memo sent out April/May
- Data is complied for final attribution –August
What President first granted pardon to the White House Thanksgiving Turkey? (Trivia 2)
President Abraham Lincoln
- Tad Lincoln loved the Thanksgiving Turkey sent to the White House. He named him "Jack". When he found out Jack was for Thanksgiving Dinner, he ran into a Cabinet Meeting crying, and asking the President Pardon for the Turkey. The President signed a pardon, and give it to Tad, who rushed to give it to the "Executioner". Thus started the annual "Thanksgiving Turkey Pardon" at the White House!
IFTA
- International Fuel Tax Agreement
- Vehicles over 26,000 lbs.
- Quarterly reporting requirement
- 48 US States and 10 Canadian Provinces
- Carriers report to 1 base jurisdiction
- Distance traveled and volumes of fuel are used to arrive at amount of tax owed in each jurisdiction
- Jurisdictions either receive funds from or transmit funds to other jurisdictions
IFTA Example
- Very Simplified Example – Quarterly report is activity for entire quarter for all vehicles in fleet
- Vehicle travels 100 miles in Freedonia, 150 miles in Sylvania
- Purchased 50 gallons of fuel in Freedonia for average 5.0 MPG
- Computed 20 gallons of fuel used in Freedonia (100 miles/5.0 MPG)
- Computed 30 gallons of fuel used in Sylvania (150 miles/5.0 MPG)
- Tax due to Sylvania is 30 gallons times local tax rate (25 cents per gallon) = $ 7.50
- Credit due from Freedonia – 20 gallons of liability, minus 50 gallons of tax already paid at the pump (30 gallons credit) at (20 cents per gallon) = $ 6.00 credit
- Carrier pays net amount of $ 1.50 to Freedonia
- Freedonia revenue agency then transmits $ 6.00 to Sylvania
The Future
- Highway Trust Fund? Will it still be around in next Authorization
- Federal Motor Fuel Tax?
- States may increase their State fuel tax in the amount of the Federal Tax used previously? (i.e. increase of 18.4 and 24.4 cents)
- Transportation Infrastructure Bank?
- More tolls, VMT tax?
Recap and Closing
- Accuracy of data in monthly 551M and yearly 556 is crucial
- Communication between State agencies, and FHWA important
- Changing political landscape my change way of transportation funding.
- If in doubt, ask.
Resources:
- Office of Highway Policy Information – Website
http://www.fhwa.dot.gov/policyinformation (redesigned) - Guide to Reporting Highway Statistics http://www.fhwa.dot.gov/policyinformation/hss/guide/index.cfm
- Office of Highway Policy: Organization Manual http://www.fhwa.dot.gov/legsregs/directives/orders/m11001a/11001a08.htm
- Monthly Motor Fuel Reported by States http://www.fhwa.dot.gov/policyinformation/motorfuelhwy_trustfund.cfm
- Attributing Highway Revenue to Each State http://www.fhwa.dot.gov/policyinformation/attrib.cfm
- Fuel Tax Attribution Process http://www.fhwa.dot.gov/policyinformation/motorfuel/ftap/index.cfm
