Motor Fuel Attribution
FHWA Estimation of Highway Trust
Fund Tax Receipts From Each State

This is a text version of a Powerpoint presentation: mfattrib.ppt (709 KB)

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

Apportionment Formulas For Programs Distrbuted Using Motor Fuel Data - Slide 4

Program: STP (Statute 104(b)(3) *)

• Total lane miles of Federal-aid highways (25%)
• Total VMT on Federal-aid highways (40%)
• Estimated tax payments attributable to highway users paid (35%)

Program: IM (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%)

Program: NHS (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 population (10%)

Minimum Guaranee: (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 Account of the HTF (100%)

* Denotes appropriate section in Tital 23, U.S. Code. SOURCE: U.S. Department of Transportation, Financing 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 - State Data - Slide 8

• HTF contributions from highway users in each State is estimated using State motor fuel data
• IRS reports tax receipts (after refunds and transfers) for each motor fuel tax type

Attribution - Slide 9

From State-reported motor fuel data:

• Measure on-highway gallons of motor fuel
  • Gasoline
  • Gasohol
  • 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:
  • Tire tax
  • Truck and trailer retail sales excise tax
  • 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

   

Back to Motor Fuel/HTF page

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