Highway Use Tax Evasion Program

Highway Use Tax Evasion Program
Current Law	Administration Proposal H.R. 2088 & S. 1072 as Modified SAFETEA of 2003	House H.R. 3 as Passed House TEA-LU	Senate H.R. 3 as Passed Senate SAFETEA of 2005
$35 million over 6 years.	Continues program over 6 years.	Continues program at $109 million over 6 years, as a deduction from the NHS.	Continues program at $400 million over 4 years.
Section 1114	Section 1307	Section 1112	Section 5101
Funds are allocated at the discretion of the Secretary to IRS and the States at 100% Federal share. Priority funds made available to the IRS to develop, maintain and operate an automated fuel reporting system. Permits a State to use 0.25 percent of its STP apportionment at 100 percent Federal share for initiatives to halt motor fuel tax evasion.	Funds will be allocated to IRS to complete, operate and maintain: the excise summary terminal activity reporting system (ExSTARS), automated fuel tracking system; registration system for barges, vessels and pipelines and their operators that make bulk transfers of taxable fuel; and an electronic database of heavy vehicle highway use tax payments. Of the total allocated to the IRS, $10.5 million in FY 2004, and $4.5 million in each of FYs 2005-2009 must be used to operate and maintain the excise summary terminal activity reporting system. For each of FYs 2004-2009, $2 million must be used to carry out intergovernmental enforcement efforts and $4.5 million will be made available for the States' programs. Continues to allow use of 0.25% of STP apportionment to halt motor fuel tax evasion.	Requires the Secretary to provide such funds as may be necessary to the IRS from the funds made available for the Highway Use Tax Evasion Program to complete, operate, and maintain an excise summary terminal activity reporting system (ExSTARS). The Secretary is also to provide funds to the States to supplement State highway use tax enforcement programs. Requires $2 million each fiscal year to be made available to carry out intergovernmental enforcement efforts, including research and training. [1112]	Provides to the IRS a total of $120 million over FYs 2006-2009 for enforcement of fuel tax compliance, including the pre-certification of tax-exempt users, and a total of $80 million for for the excise fuel information reporting system, of which $40,000,000 shall be allocated to the excise summary terminal activity reporting system. Provides to FHWA $50 million for each of FYs 2006-2009 to be allocated $1,000,000 to each State to combat fuel tax evasion on the State level.
No comparable provision.	Requires the Commissioner of the Internal Revenue Service to submit and the Secretary to approve a budget and project plan for the completion, operation, and maintenance of the ExSTARS system.	Same as Administration Bill [1112(b)(2)(E)]	No comparable provision.
Eligible activities include: efforts to expand motor fuel tax enforcement; supplement Federal and State motor fuel tax exams and criminal investigations; reimburse State expenses that supplement existing highway use and fuel tax compliance efforts; develop automated data processing systems to aid in tax compliance.	New eligibilities include: reducing tax evasion related to imports of foreign motor fuel; and supporting efforts between States and Tribes in addressing issues related to collection of State motor fuel taxes.	Same as Administration Bill [1112(a)(3)(C)]	No comparable provision.
No comparable provision.	Requires the Secretary to enter into a memorandum of understanding (MOU) with the Commissioner of the IRS to develop, operate, and maintain a registration system for pipelines, vessels, and barges that make bulk transfers of taxable fuel.	Same as Administration Bill [1112(c)]	No comparable provision.
No comparable provision.	The Commissioner of the IRS shall submit and the Secretary approve a budget and project plan for development, operation, and maintenance of the pipeline, vessel, and barge registration system. The system shall be under the control of the IRS, and shall be made available for use by State and Federal revenue, tax, and law enforcement authorities.	Same as Administration Bill [1112(c)]	No comparable provision.
No comparable provision.	Requires the Secretary to make funds available to the IRS from the funds made available to the Highway Use Tax Evasion Program to complete, operate, and maintain a registration system for pipelines, vessels, and barges that make bulk transfers of taxable fuel.	Requires the Secretary to provide such funds as may be necessary to the IRS from the funds made available for the Highway Use Tax Evasion Program to complete, operate, and maintain a registration system for pipelines, vessels, and barges that make bulk transfers of taxable fuel. [1112(c)]	No comparable provision.
No comparable provision.	Requires the Secretary to enter into a memorandum of understanding (MOU) with the Commissioner of the IRS to establish, operate, and maintain an electronic database of heavy vehicle highway use tax payments.	Same as Administration Bill [1112(c)]	No comparable provision.
No comparable provision.	The Commissioner of the IRS shall submit and the Secretary approve a budget and project plan for the establishment, operation, and maintenance of the electronic database. The database shall be under the control of the IRS, and shall be made available for use by State and Federal revenue, tax, and law enforcement authorities.	Same as Administration Bill [1112(c)]	No comparable provision.
No comparable provision.	Requires the Secretary to make funds available to the IRS from the funds made available to the Highway Use Tax Evasion Program to establish, operate, and maintain an electronic database for heavy vehicle use tax payments.	Requires the Secretary to provide such funds as may be necessary to the IRS from the funds made available for the Highway Use Tax Evasion Program to establish, operate, and maintain an electronic database of heavy vehicle highway use tax payments. [1112(c)]	No comparable provision.
No comparable provision.	Requires the Commissioner of the IRS and each participating State to submit annual reports to the Secretary describing the projects, examinations, and criminal investigations carried out under this section, and the annual yield estimated for each project.	Same as Administration Bill [1112(a)(4)]	No comparable provision.
No comparable provision.	Requires the IRS to submit to the Secretary biannual reports on the status of IRS projects funded under this section related to: ExSTARS; the pipeline, vessel, and barge registration system; and the heavy vehicle use tax electronic database.	Same as Administration Bill [1112(c)]	No comparable provision.
Related Provisions
			Diesel Fuel Tax Evasion Report - IRS to report within 360 days of enactment to Senate Finance and House Ways and Means Committees on the availability of new technologies that can be employed to enhance collections of the diesel fuel excise tax and IRS plans to employ such technologies. [5312]
No comparable provision.	No comparable provision.	No comparable provision.	Motor Fuel Tax Enforcement Advisory Commission - Establishes Commission to review motor fuel tax collections, review the progress of investigations, develop and review legislative proposals with respect to motor fuel taxes, monitor the progress of administrative regulation projects relating to fuel taxes, review the results of Federal and State agency cooperative efforts regarding motor fuel taxes and evaluate and make recommendations regarding the effectiveness of existing Federal enforcement programs. [5301]

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