Identifying and Quantifying Rates of State Motor Fuel Tax Evasion (2008) / Chapter Skim
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Pages 146-176
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146 A P P E N D I X D Report: Addanki, S., Cohen, Y., and Dunbar, F January 1987.
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147 Report: Battelle Memorial Institute (BMI) and National Renewable Energy Laboratory (NREL)
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148 The study constructed forecasts of future fuel economy growth by vehicle type. Passenger car fuel economy was forecasted to grow by 1.8 percent annually during the near term (1999-2005)
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(registration for entities using fuel for tax exempt purposes)
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150 from several sources, including: Federal Highway Administration, Environmental Protection Agency, Energy Information Administration, National Personal Transportation Survey, Bureau of Economic Analysis, Bureau of the Census, R.L. Polk Company and Eno Transportation Foundation.
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econometric analysis. Based on these methods, this study estimates that evasion of Kentucky fuel taxes costs the state highway fund approximately $26-$34 million annually.
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152 The purchaser would now be responsible for filing the tax refund. Second, it was recommended that the amendment should be accompanied by a permit process for claimants to provide substantiation of exempt usage of fuel.
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assessments to enable a time-trend analysis to analyze the effects of administration and audits on assessments. Finally, the authors recommend substantiation of their results through further model development and better data.
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This is a brief summary of fuel tax evasion and efforts to curb fuel tax evasion. It includes estimates of federal fuel tax evasion, major federal legislation relating to fuel taxes.
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responsibility. The most recent analysis found that the equity ratio for combination trucks weighing less than 50,000 lbs.
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Report: Federal Highway Administration, United States Department of Transportation.
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These are minutes of the annually held Joint Federal/State Motor Fuel Tax Compliance Project Steering Committee Meetings. These minutes generally contain a summary of reports made by individual states, regional motor fuel tax task forces, IRS, FHWA and other visiting organizations or individuals.
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Report: Festin, S
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taxpayers to provide more detailed data at the time of deposit, and b) reviewing the issue in several years to determine if technological and data collection methods have advanced in a manner that makes the collection of more detailed data less burdensome from a compliance standpoint and, thus, more feasible.
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time in response to several stakeholder complaints that such a system would be too burdensome. The study also points to a number of unaddressed concerns.
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There are several states that forecast revenue based on historical data. The report points out that the use of a simple model implicitly assumes that demand for travel and fuel is not linked to economic and demographic variables.
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The report also notes that there are large and irreconcilable historical differences between gasoline consumption estimates produced by EIA and data published by FHWA, such that FHWA estimates of taxed gallonage actually exceed the EIA estimates of gasoline supplied to the transportation sector, as shown in the PSA. Further, EIA estimates of sales volumes, derived from form EIA-782, significantly exceed the amount of fuel supplied to the system prior to 1994.
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Additional sources of data included in the analysis are: crude oil production estimates published in the Oil and Gas Journal, data on United States oil and gas reserves published by EIA's Reserves and Production Division, crude oil import data compiled by the United States Census Bureau and the Fuel Oil and Kerosene Sales Report published by the EIA. The report notes that there are large and irreconcilable historical differences between gasoline consumption estimates produced by EIA and data published by FHWA, such that FHWA estimates of taxed gallonage actually exceed the EIA estimates of gasoline supplied to the transportation sector shown in the PSA.
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based model. The new model uses data from the Internal Revenue Service, Energy Information Administration, Environmental Protection Agency, Department of Energy, ORNL, and FHWA.
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Report: Internal Revenue Service.
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Report: Joint Committee of Taxation. January 1995.
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This report reviews federal tax treatment of alternative motor fuels in comparison with traditional petroleum highway motor fuels such as gasoline and diesel. The report discusses certain purposes of motor fuel excise taxes: revenue generation for highways, budget deficit reduction and energy policy concerns.
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problem and financial implications of diesel fuel tax evasion in New Jersey, the methods used to evade taxes, weaknesses in statutes for combating evasion, possible solutions to address the problem of diesel tax evasion and recommendations for statutory change to combat evasion and reduce tax losses. Testimony provided by a representative of the New Jersey Division of Taxation indicates that the daisy chain method and the mislabeling of home heating oil are the most common forms of diesel tax evasion.
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The 1995 NPTS was based on three types of survey methods: vehicle-based estimates, driverbased estimates and trip-based estimates. For each respondent, VMT and trip information is matched with demographic and ownership data to analyze trends in vehicle ownership and usage for respondent groups segregated by age, gender and socioeconomic factors.
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This report synthesizes fuel tax evasion issues, discussing tax dodging methods and various fuel tax compliance methods and efforts. Fuel tax evasion schemes are discussed in four major categories: failures to file, the filing of incorrect information, filing false exemptions and failures to pay assessed taxes.
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energy, environmental, financial, legislative, socioeconomic and technology factors. The paper presents a summary of the highway revenue analysis, which includes a long-range forecast of all transportation revenue sources in Indiana.
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This report describes the National Energy Modeling System (NEMS) Transportation Model (TRAN)
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point of collection to a point higher in the fuel distribution chain and growth resulting from increased travel and motor fuel consumption, the Treasury Department further estimated that $600-$700 million of the total growth in diesel fuel tax collections experienced in FY 1994 could be attributed to reduced tax evasion resulting directly from the enforcement provisions of OBRA 1993. This report also documents a spill-over compliance benefit realized by states as a result of federal diesel dyeing requirements and enforcement activities.
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tax revenues in Washington State. Taxable fuel gallonage is estimated with an econometric model comprised of two equations.
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of a larger model that would predict excise tax revenues for all motor fuels. Three stage least squares is incorporated to estimate fuel consumption for various vehicle classes.
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revenue forecasting model is based on regression analysis, which relies on past behavior to predict future behavior. The gasoline consumption model is based on the assumption that fleet composition, real income and real fuel prices affect the demand for travel and fuel consumption, where: auto registrants = autos registered - autos scrapped + new auto registrations; and VMT = f (real disposable income, real gas price adjusted for fuel efficiency, dummy variables for abnormal years such as oil embargo years)
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