Motor Fuel Attribution

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Motor Fuel Attribution

• FHWA Estimation of Highway Trust Fund Tax
  Receipts From Each State

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Apportionments

• 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

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Apportioned Programs

• 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

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The Attribution Process

• FHWA attribution supports the apportionment
  process
• How does FHWA calculate attribution
• Why is State data necessary

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Attribution

• State-by-State contributions to the Federal
  Highway Trust Fund are not available from the
  Internal Revenue Service (IRS)

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Attribution

• 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 doesnt know

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Attribution State Data

• 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

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Attribution

• 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 States share of the national total
• Use those shares to determine revenue shares

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Attribution

• 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

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Summary

• Processes
• Apportionment process
• Attribution process
• Importance
• State data
• Motor fuel reviews