TEA-21 - Transportation Equity Act for the 21st Century Moving Americans into the 21st Century
	Fact Sheet
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HIGHWAY USE TAX EVASION PROJECTS
Year	1997(ISTEA)	1998	1999	2000	2001	2002	2003
Authorization	$5M	$10M	$5M	$5M	$5M	$5M	$5M

Program Purpose

The purpose of the Highway Use Tax Evasion program is to support the State and Federal efforts to enhance motor fuel tax enforcement. [1114]

Funding Features

Funds are to be allocated at the discretion of the Secretary to the Internal Revenue Service and to the States (100% Federal share). Before any other distribution is made, sufficient funds must be made available to the IRS to establish and operate an automated fuel reporting system. [TRA 9002(h)]

Permits ¼ of 1 percent of the Surface Transportation Program funds apportioned to a State each fiscal year, at 100% Federal share, to be used on initiatives to halt the evasion of payment of motor fuel taxes.

Eligible Activities

Funds authorized specifically to carry out this program may be used only for the following purposes:

• expand efforts to enhance motor fuel tax enforcement

• fund additional IRS staff, but only to carry out functions described in this section

• supplement motor fuel tax examinations and criminal investigations

• develop automated data processing tools to monitor motor fuel production and sales

• evaluate and implement registration and reporting requirements for motor fuel taxpayers

• reimburse State expenses that supplement existing fuel tax compliance efforts

• analyze and implement programs to reduce tax evasion associated with other highway use taxes

September 14, 1998