Identifying and Quantifying Rates of State Motor Fuel Tax Evasion

Revenues from motor fuel are used primarily to support the states' transportation systems. In this time of large state budgetary deficits, it is particularly important that all motor fuel tax funds are collected, remitted, and credited to the respective state highway accounts. However, allegations of significant evasion of these taxes persist. The extent and causes for this loss of revenue from fuel tax evasion are not fully understood. For states to maximize receipt of their motor fuel taxes, it is imperative for them to most efficiently develop and direct their enforcement resources. In order to do so, it is important to determine the origin and extent of fuel tax evasion and to be able to evaluate the potential effectiveness of enforcement options. Reliable estimates for motor fuel tax evasion rates are not available. Research is needed to enable states to identify and measure state fuel tax evasion so that they can evaluate the effectiveness of potential solutions and enforcement options. The objective of this research project is to develop and demonstrate a methodology for identifying and quantifying state-level fuel tax evasion. The methodology should account for different practices among states that may lead to different rates of evasion. The results from this methodology should allow individual states to develop and evaluate potential solutions and enforcement options.


  • English


  • Status: Completed
  • Contract Numbers:

    Project 19-06

  • Sponsor Organizations:

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  USA  20590

    American Association of State Highway & Transportation Officials

    444 North Capitol Street, NW, Suite 225
    Washington, DC    20001

    National Cooperative Highway Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC  USA  20001
  • Project Managers:

    Lemer, Andrew

  • Performing Organizations:

    Battelle Memorial Institute

    Columbus Laboratories
    Columbus, OH  USA  43201
  • Principal Investigators:

    Weimar, Mark

  • Start Date: 20040729
  • Actual Completion Date: 20080630
  • Source Data: RiP Project 9010

Subject/Index Terms

Filing Info

  • Accession Number: 01460817
  • Record Type: Research project
  • Source Agency: National Cooperative Highway Research Program
  • Contract Numbers: Project 19-06
  • Files: RiP, USDOT
  • Created Date: Jan 3 2013 1:33PM