Determining the Current Rates of Motor Fuel Tax Evasion for the State of Montana

Details

• Creators:
  Balducci, Patrick ; Weimar, Mark ; Whitmore, Susan ; Fathelrahman, Eihab ; Scovell, Laurie ; Johnson, Debra
• Corporate Creators:
  Battelle Memorial Institute
• Corporate Contributors:
  Montana. Dept. of Transportation. Research Programs ; United States. Federal Highway Administration
• Subject/TRT Terms:
  • Fuel taxes
  • Sales tax
  • Crimes
  • Taxation
  • Law enforcement
  • Tax evasion
  • Tax collection
• Publication/ Report Number:
  FHWA/MT-06-007/8180
• DOI:
  https://doi.org/10.21949/1518166
• Resource Type:
  Tech Report
• Geographical Coverage:
  Montana
• Corporate Publisher:
  Montana. Dept. of Transportation. Research Programs
• Abstract:
  The report uses data collected through interviews with neighboring states and provincial tax administrators as well as audit, enforcement and collections data provided by the Montana Department of Transportation (MDT) to determine the extent and underlying reasons of motor fuel tax evasion in Montana. The report outlines numerous techniques that could be used to evade Montana motor fuel taxes, including border schemes, dyed fuel schemes, refund and credit fraud, daisy chains and blending schemes. Based on the analyses presented within this report, it is estimated that errors, omissions and evasion (EOE) associated with diesel taxes totals roughly 16.3 percent of total tax liability, an amount equal to 43.4 million gallons or $12.1 million in 2004. The data collected for this study suggest that gasoline tax EOE is not as significant, totaling roughly 2.1 percent of total tax liability: an amount equal to $2.8 million or 10.3 million gallons in 2004. This report also critically assesses Montana’s motor fuel tax program and recommends approaches to close current enforcement gaps. ; Record includes final report, summary, and presentation.
• Format:
  PDF
• Funding:
  8180
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/24803/dot_24803_DS1.pdf
• File Type:
  [PDF - 4.65 MB]
• Collection(s):
  US Transportation Collection
• Main Document Checksum:
  urn:sha256:0b3d41e1d587bb3752641d4de808f80df72e217e1168010ceca398b7ea6406c6