New Motor Use Fuel Tax Study Examines Revenues
Georgia state transportation and revenue officials now have a better understanding of motor use fuel tax efficiencies with the help of a Vinson Institute study.
“Officials were particularly interested in determining whether Georgia collects the amount of revenue from the motor use fuel tax that national data on highway use of fuel suggest should be collected,” said Wes Clarke, Vinson Institute faculty member who directed the study.
Motor use fuel tax revenue is the primary source of both federal and state funds used to finance roads and bridges. It represents one of the most complex taxes to administer and understand, due in part to the multilevel fuel distribution system.
The study, covering 2004 to 2008, also explored how enforcement mechanisms in Georgia and elsewhere affect the collection of the revenue. “Most of the data include all 50 states, but particular attention is given to Alabama, Florida, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia. We also looked at how these states compare with one another on the estimated margins produced at the retail price level,” explained Clarke.
Finally, using data from the Institute's Applied Demography Program and estimates of future energy costs from the Energy Information Administration, the study team was able to estimate Georgia's fuel needs and motor use fuel tax revenues through 2020 at current tax rates.
The Motor Use Fuel Tax in Georgia: Collection Efficiency, Trends, and Projections >>
