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

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 URL:
  • http://www.mdt.mt.gov/research/projects/admin/evasion.shtml
• 
• Record URL:
  • https://rosap.ntl.bts.gov/view/dot/24864
• Corporate Authors:

  Battelle Memorial Institute

  505 King Avenue
  Columbus, OH  United States  43201

  Montana Department of Transportation

  2701 Prospect Avenue
  P.O. Box 201001
  Helena, MT  United States  59620-1001

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Balducci, Patrick
  • Weimar, Mark
  • Whitmore, Susan
  • Fathelrahman, Eihab
  • Scovell, Laurie
  • Johnson, Debra
• Publication Date: 2006-11

Language

• English

Media Info

• Media Type: Print
• Edition: Final Report
• Features: Appendices; Figures; Maps; References; Tables;
• Pagination: 155p

Subject/Index Terms

• TRT Terms: Data collection; Diesel fuels; Fuel taxes; Interviewing; Rates; Taxation; Taxes
• Uncontrolled Terms: Fuel tax evasion; Refunds
• Geographic Terms: Montana
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01055176
• Record Type: Publication
• Report/Paper Numbers: FHWA/MT-06-007/8180
• Contract Numbers: 8180
• Files: NTL, TRIS, USDOT, STATEDOT
• Created Date: Aug 23 2007 10:40AM