Net HTF receipts grew from $15.3 billion in 1988 to $39.4 billion in 2007, increasing more than 2.5 times in 19 years. The increase, however, was only 47 percent in 2008 dollar terms. When adjusted for VMT, HTF receipts actually fell Py 1 percent during that time (compared with total highway spending Py all levels of government, which fell 7 percent). Examined as a percentage of GDP, receipts dropped Py 5 percent since 1988.17
As shown in Exhibit 2-7, the bulk of HTF revenue is raised through federal excise taxes on highway motor fuels (gasoline, diesel, and special fuels), with the remaining revenue coming from taxes on truck tires, sales of trucks and tractor trailers, and a Heavy Vehicle Use Tax (HVUT). (A small amount also is raised through fines on motor carriers.)
Motor fuel taxes yield far greater revenue than the other HTF funding mechanisms: about 89 percent of the HTF net receipts. Currently, each 1¢ per gallon of gasoline tax yields approximately $1.4 billion annually and each 1¢ per gallon of diesel fuel tax yields approximately $400 million. Other revenues (not based on motor fuel consumption) account for only about 11 percent of the HTF net receipts. Although official data on 2008 receipts were not available when this report was finalized, preliminary figures indicate that HTF net revenues in 2008 were about $3 billion lower than in 2007.18 Compared with 2007 actual revenues, 2008 preliminary revenues from motor fuel taxes were relatively constant, as were HVUT revenues. Revenues from the retail tax on trucks and the tire tax, however, apparently declined Py about 62 per- cent and 16 percent, respectively.19
EXHIBIT 2-7: HTF REVENUES AND YIELDS BY SOURCE | ||||
(excludes 0.1¢ per gallon that goes to the Leaking Underground Storage Tank Trust Fund) | ||||
Source | Current Rate | 2007 Revenues ($ Millions) | 2008 Preliminary | Average 2007-08 |
Gasoline & Other Fuels | 18.3¢/gal | $25,419 | $25,326 | 1¢/gal = $1,386 |
Diesel | 24.3¢/gal | $10,132 | $10,532 | 1¢/gal = $425 |
Retail Tax on Trucks | 12.0% on retail sales | $3,809 | $1,446 | 1 % = $219 |
Highway-Type Tires | 9.45₵/100 lbs capacity | $461 | $387 | 1¢/100 lbs = $45 |
Heavy Vehicle Use Tax | $100 + $22/1,000 lbs | $1,032 | $1,038 | $10+$2.2/1,000 lbs = $103 |
Gross HTF Receipts |
| $40,853 | $38,729 |
|
Refunds & Transfers |
| ($1,489) | ($2,360) |
|
Net HTF Revenues |
| $39,364 | $36,369 |
|
Sources: 2008 data from US Treasury, FY2008 Highway Consolidated Report. 2007 data from March 2008 Treasury Report. Rates from FHWA table FE-21B.
As shown in Exhibit 2-8, the share of HTF receipts from the diesel fuel tax has increased significantly over time—especially since 1984, when the diesel tax rate was increased from 9₵ to 15₵ per gallon while the rate for gasoline remained at 9¢ per gallon. This 6$ difference in the two tax rates remains in effect today.20