Fuel Tax Evasion

Revenues from motor fuel and other highway use taxes provide the primary source of funding for our nation’s transportation system, and ensuring all of these taxes are collected, remitted, and credited to the Highway Trust Fund is a priority for FHWA. Loss of revenue due to tax evasion is an on-going issue that is being addressed at Federal and State levels. Revenue and enforcement agencies are working together in the Joint Federal/State Motor Fuel Tax Compliance Project to address the issue of motor fuel tax evasion through audit and enforcement efforts as well as through advances in technology.

Numerous research projects have tried to determine losses resulting from motor fuel tax evasion. Estimates have been made by non-FHWA sources during Congressional testimony, through econometric and statistical analyses, as well as through revenue modeling, with results varying from about $1 billion annually to as much as 25 percent of total revenues. Reliable estimates of evasion are not available.

PUBLICATIONS

For more information about the Fuel Tax Evasion Program, contact Ms. Linda Morris