Appendix M: Federal Excise Taxes on Highway Motor Fuel¹ (Cents Per Gallon)

1/ This table shows the fuel tax rates for highway use of motor fuels, along with the allocation of the revenues derived from the tax, in effect July 1, 1956 and subsequent changes.

2/ The Surface Transportation Assistance Act of 1982 (P.L. 97-424) provided that the Mass Transit Account would receive one-ninth of the fuel tax. The Deficit Reduction Act of 1984 (P.L. 98-369) provided that the Mass Transit Account would receive 1 cent per gallon. For most fuels the change had no practical effect.

3/ The Transportation Equity Act for the 21st Century retroactively revised the Mass Transit Account share of the fuel tax.

4/ Gasohol was not defined in Federal tax law prior to January 1, 1979. The products later defined as gasohol were taxable, to the extent they existed, under the provisions of the gasoline tax. Effective January 1, 1979, the Energy Tax Act of 1978 defined gasohol to be a blend of gasoline and at least 10 percent (by volume) alcohol, excluding alcohol made from petroleum, natural gas, or coal. Blends with less than 10 percent alcohol were taxable as gasoline. The Energy Policy Act of 1992 expanded the definition of gasohol effective January 1, 1993. Under the Act, the product now called 10 percent gasohol corresponds to the definition under the Energy Tax Act of 1978. Two additional types of gasohol are also defined. The term 7.7 percent gasohol includes gasoline-alcohol blends where the alcohol content is at least 7.7 percent but less than 10 percent. The term 5.7 percent gasohol includes gasoline-alcohol blends where the alcohol content is at least 5.7 percent but less than 7.7 percent.

5/ The Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647) retroactively reduced the levy for the Leaking Underground Storage Tank Trust Fund from 0.1 cent to 0.05 cent.

6/ Prior to October 1, 1993, compressed natural gas (CNG) was not taxed.

Electronic version of Publication No. FHWA-PL-99-015