-LT-

VIN. HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON USE OF

TRANSPORTATION VEHICLES, 1932-1996

Transportation Service 1932-34 1934-42 1942-46 1946-56 1956-61 1961-70 1970-80 1980-84 1984-96
Use of heavy motor
vehicles $1.50 per $3.00 per —_$3,00 per $3.00 per Vehicles
1,000 Ibs. 1,000 Ibs. 1,000 Ibs. 1,000 Ibs. under 55,000 Ibs;
per year. per year. per year. per year. no tax; 55,000 Ib.
No tax on No tax on No tax on No tax on to 75,000 Ibs;
vehicles vehicles vehicles vehicles $100 per year
under under under under plus $22 for
26,000 Ibs. 26,000 Ibs. 26,000 Ibs. 26,000 Ibs. each 1,000 Ibs.
over 55,000;
over 75,000 Ibs;
$550.
Use of motor vehicles $5 per
generally year per
vehicle
Use of commercial boats $10-$200 $5-$200
per year, per year,
depending depending
on size. on size.
Use of civil aircraft $25 plus
2¢Mb. for
weight in
excess of
2,500 Ibs.
For turbine-
engine-
powered
aircraft:
$25 plus
3.5¢/b.

of weight.


rtati

Under the authority granted in the Independent Office Appropriations Act of 1952. the STB
collects fees associated with the functions transferred as a result of the termination of the
Interstate Commerce Commission. The following table summarizes the major fees categories
and projected revenues for FY 1996:

Fiscal Year’96 Fiscal Year “96

‘Transportation Mode and Annualized Filing Annualized
Activity Description Activity Revenue
STB - Rail

Tariff/Contract Summaries 46,849 $609,040
Major Merger Transaction 1 196,900
Abandonment - Notice of Exempt 86 163.400
Abandonment - Petition Exempt 34 112,200
Abandonment - Application 9 105.300
Purchase. Lease-Pet. - Exempt 24 87,000
Documents for Recordation 3,003 63,693
Construction-Petition Exempt 18 54,000
Construction Exten. - Notice Exempt 46 43,700
Trackage Rights - Notice Exempt 58 37,700
Subtotal STB - Rail XXX 1,472,933
Other Miscellaneous STB - Rail XXX 147,158
Total STB - Rail XXX $1,620,091
STB - Motor

Miscellaneous STB - Motor XXX 237,782
GRAND TOTAL STB MOTOR XXX $1,857,873
AND RAIL :

~38-



APPENDIX:
Information Received From Executive Agencies in Response to Joint Committee on
Taxation Staff Requests Regarding Non-Tax User Fees
Imposed on Transportation Providers

As discussed in the Joint Committee on Taxation's initial response’ to Chairman Archer's
request for assistance to the Committee on Ways and Means transportation task force, non-tax or
“true” user fees may be imposed by expenditure authorization and appropriation Acts or by
agencies of the Executive Department pursuant to such Acts. This Appendix reproduces
information received from three agencies in response to requests from the Joint Committee on
Taxation regarding such fees imposed with regard to programs within their jurisdiction:

1, Letter of November 21, 1996, from the Honorable Federico Pena, Secretary of
Transportation, to Kenneth J. Kies.

2. Letter of November 18, 1996, from Michael V. Dunn, Assistant Secretary for Marketing and
Reguatory Reforms, Department of Agriculture, to Kenneth J. Kies.

3. Letter of November 25, 1996, from Russell L. Fuhrman, Major General, U.S. Army,
Director of Civil Works, Army Corps of Engineers, to Kenneth J. Kies.

' See Joint Committee on Taxation, Present Law and Background on Federal
Transportation Excise Taxes and Trust Fund Expenditure Programs (JCS-10-96), November 14,

1996.

~34-



p<
lo
ig
et

1984-96

Trucks,
buses
and
truck

trailers

12% of
retail
price (ex-
clusion
for trucks
s 33,000
Ibs. and
trailers

s 26,000
Ibs)

Pass-
enger
auto-
mobiles

Auto-
mobiles
parts and
accessories

12% of
retail price
when
purchased
in
connection
with new
truck
(within 6
months)

-1l1-

Tires for use
on highway
vehicles

Inner
tubes for
tires

Tread
rubber

Tires s 40
pounds, no
tax, 40
pounds < tire
s 70 Ibs.,
15¢/lb 2 40;
70 Ibs. s tire
< 90 Ibs.,
$4.50 plus
30¢/bs.,
$10.50 plus
S50¢/lb. 2 90
Ibs.

-0-

-0-


-Iz-

Figure 1.-- Excise Tax Receipts as a Percentage of Total Federal Receipts, 1890-1995

100
90
80
70
60
50
wo |
30
20
10
0 fet Cert T tT Torre TOT eee eet TOP EDP Eee er errr Perr Pree ry
$ 33s 228 8 8 BSR eRE RE KERB!
22 3 8 2 = 8 § @ F FF € FR FF FRE RE

Year


Office of the Secretary (OST)

OST charges fees to process applications for transportation services that are generally related to
interstate and overseas air transportation. The 50 services along with the fee for each service are
listed on the following table:

ervice Fee ($s
Certificate of Public Convenience and Necessity:
Application under sec. 401

Charter 850
Scheduled Service 850
Dormant Authority 290
All-Cargo under sec. 418 670.
Transfer 290
Air Taxi Registration 8
Scheduled Passenger Commuter Registration 670
Change of Name 56

(registration of trade name or reissuance
of certificate)
Exemption Request (General):

Section 403 53
Section 401 (domestic) 280
Section 419 120
Service Mail Rate Petition 420

Foreign Air Transportation (U.S. and Air Carriers)

Certificate of Public Convenience and Necessity (sec. 401):

Scheduled Service 900
Amendment to application 425
Charter Service 600
Amendment to application 200
Transfer 255
Change of Name (registration of trade name of 56

reissuance of certificate)
Foreign Air Carrier Permit (sec. 402):

initial 760
Amendment/Renewal of permit 475
Amendment to application for a permit 215
Exemption:

Section 403 33
Section 401/402:

10 or fewer flights 77

More than 10 flights 360
Filed less than 10 days before effective

date requested 17

=39-



I, CURRENT FEDERAL TRANSPORTATION EXCISE TAX RATES, BY SECTOR AND FUND DEDICATION

(As of December 1, 1996)

Transportation Sector Trust Fund General Fund Total Tax
Highway Transportation”
1 Motor fuels taxes
a. Trucks, automobiles
Gasoline 14.0¢/gal 4 .3¢/gal. 18.3¢/gal
Diesel fuel 20.0¢/gal. 4.3¢/gal 24. 3¢gal.
Special motor fuels 14.0¢/gal 4.3¢/gal. 18.3¢/gal.
b. Intercity bus
Gasoline no tax no tax no tax
Diesel fuel 3.0¢/gal. 43¢/gal. 7.3¢/gal.
Special motor fuels 3.0¢/gal. 4.3¢/gal. 7.3¢/gal.
2. Non-fuel taxes
a. Truck retail sales (trucks 12% of price -0- 12% of price

over 33,000 Ibs;

trailers over 26,000 Ibs.)

> Highway Trust Fund tax rates currently are scheduled to expire after September 30, 1999.


-@e-

Figure 5.--Nominal Retail Price of Unleaded Regular Gasoline 1976-1996

M40

120

80 +

Cents per gallon

20

0 + t—4 Fi ff pe |

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Year

Source: U.S. Department of Energy.



-8I-

IX, SELECTED STATISTICAL INFORMATION

ON FEDERAL EXCISE TAXES

A. Relationship of Excise Tax Receipts and Total Tax Receipts

Table 1.--Excise Tax Receipts in Millions of Dollars and as a Percentage of Total Federal Receipts, 1890-1995

Excise Excise Tax Excise Excise Tax
Tax Receipts as Tax Receipts as
(millions Percentage of (millions Percentage of
Year of dollars) Total Revenue Year of dollars) Total Revenue
1890 142 98.60 1910 267 92.07
1891 145 99.32 1911 287 88.85
1892 152 98.70 1912 291 90.37
1893 159 98.76 1913 308 89.53
1894 145 98.64 1914 307 80.79
1895 142 99.30 1915 328 78.85
1896 145 98.64 1916 340 66.28
1897 145 99.32 1917 388 47,96
1898 169 98.83 1918 637 17.22
1899 265 97.07 1919 837 21.74
1900 284 96.27 1920 808 14.94
1901 294 95.77 1921 685 14.91
1902 259 95.22 1922 593 18.55
1903 223 96.54 1923 625 23.84
1904 230 98.71 1924 667 23.86
1905 232 99.15 1925 543 21.01
1906 248 99.60 1926 571 20.13
1907 268 99.26 1927 482 16.82
1908 250 99.21 1928, 481 17.23
1909 245 99.59 1929 540. 18.37


Table 3.--Selected Transportation Excise Tax Receipts as
a Percentage of Total Excise Rax Receipts, 1955-1995

General Fund

Transportation Highway Airport Trust
Year Fuels Trust Fund Fund
1955
1956
1957 14%
1958 19%
1959 20%
1960 22%
1961 24%
1962 24%
1963 25%
1964 26%
1965 25%
1966 30%
1967 32%
1968 31%
1969 30%
1970 34%
1971 33% 3%
1972 34% 4%
1973 35% 5%
1974 37% 5%
1975 37% 6%
1976 32% 6%
1977 38% TM%
1978 38% TM%
1979 38% 8%
1980 38% 1%
1981 36% 0%
1982 38% 1%
1983 36% 9%
1984 41% 9%
1985 44% 10%
1986 44% 9%
1987 40% %
1988 40% %
1989 45% 11%
1990 39% 10%

~24-



~0Z-

Table 1.--Excise Tax Receipts in Millions of Dollars and as a Percentage of Total Federal Receipts, 1890-1995

Excise Excise Tax

Tax Receipts as
(millions Percentage of
Year of dollars) Total Revenue
1982 36,311 5.88
1983 35,300 5.88
1984 37,361 5.61
1985, 35,992 4.90
1986 32,919 4.28
1987 32,457 3.80
1988 35,227 3.88
1989 34,386 3.47
1990 35,345 3.43
1991 42,402 4.02
1992 45,569 4.18
1993 48,057 4.17
1994 55,225 439
1995 57,484 4.24

Source: Joint Committee on Taxation; Office of Management and Budget, Historical Tables, Budget of the United States Government,
Fiscal Year 1997; and Census Bureau. Department of Commerce, Historical Statistics of the United States Colonial ‘Times to Present.


-€¢-

Figure 6.--Price of Unleaded Regular Gasoline in Real 1984 Dollars

160.00

140.00

120.00

100.00 +

Cents Per Gallon
s
s

60.00 +

40.00 +

20.00

1976-1996

0.00 T T T T 1

=

Ser

—— teal unleaded

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Source: U.S. Department of Energy and JCT calculations.

Year


VI. HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON
PASSENGER TRANSPORTATION SERVICES, 1941-1996 (cont'd)

International

Year departures_by air Departures by ship Ship arrivals
1941 -0- Tickets of $10 or less: no -0-

tax; $10-30: $1.10; $30-

60: $3.30; over $60: $5.50
1942-1943 -0- Tickets of $10 or less: no -0-

tax, $10-30: $1.10; $30-

60: $3.30, over $60: $5.50
1943-1946 -0- Tickets of $10 or less: no -0-

tax, $10-30: $1.10; $30-

60: $3.30; over $60: $5.50
1946-1960 -0- -0- -0-
1960-1962 -0- -0- -0-
1962-1969 -0- -0- -0-
1970-1981 $3/passenger -0- -0-
1981-1982 $3 -0- -0-
1982-1986 $3 -0- -0-
1987-1990 $3 0.04% of amount paid. 0.04% of amount paid
1990-199] $6 $3/passenger plus 0.04%

0.04% of amount

paid ”
1991-1996 $6! $3/person plus 0.125%” 0.125%

' Tax expired during the period January 1, 1996-August 26, 1996.
» $3/passenger tax is a General Fund tax on voyages into international waters that either (1) last overnight or (2)

have gambling on board ship; the ad valorem ship tax rate since 1987 is the Harbor Maintenance Trust Fund excise
tax.

~15-


Tax Point of Collection Person Liable for Remittance Schedule Treasury Disposition
Payment

2. Diesel fuel
(All diesel fucl is Same as gasoline tax. Same as gasoline tax. Same as gasoline tax. Revenues go to General
taxed unless the Fund first. Treasury then
fuel is dyed at the transfers Highway Trust
point where tax Fund portion (20
would be im- cents/gallon on highway
posed and is uses) to that Fund.
destined for a (There are no off-
nontaxable, rail, highway diesel fuel Trust
or intercity bus Fund rates. Off-highway

use. Refunds are
allowed--
generally to
consumers--if
undyed diesel
fuel is used in a
nontaxable, rail,
or intercity bus
use because tax
has been paid
earlier in the
product's chain of
distribution.)

3. Special motor
fuels

Retail sale for use in
highway vehicles, or use

* if no sale occurs.

Person selling (or using)
the fuel.

Same as gasoline tax.

use other than in trains
also is exempt from
General Fund rate.)

Revenues go to the
General Fund first, with
Treasury then transferring


-0¢-

cents per gallon

235 +

20 -

15

Figure 4.--Nominal and Real Value of Federal Excise Tax Rate on Diesel Fuel, 1955-1995

1955

+ t f + t + to
1960 1965 1970 1975 1980 1985 1990 1995

Year

—@ nominal tax rate

®— real tax rate 1984 dollars



B. Nominal and Real Values of Selected Transportation Excise Taxes

Table 4.--Nominal and Real Value of Federal Excise Taxes
on Gasoline and Diesel Fuel, 1955-1996

Nominal Real Nominal
Federal Federal Federal Real
Excise Taxes Excise Taxes Excise Taxes Federal
on Gasoline on Gasoline on Diese] Fuel on Diesel Fuel
Year {cents per gallon) (1984 cents per gallon) (cents per gallon) (1984 cents per gallon)
1955 2.0 7.75 2.0 7.75
1956 3.0 11.46 3.0 11.46
1957 3.0 11.09 3.0 11.09
1958 3.0 10.79 3.0 10.79
1959 3.0 10.71 3.0 10.71
1960 4.0 14.04 4.0 14.04
1961 4.0 13.90 4.0 13.90
1962 40 13.76 40 13.76
1963 4.0 13.58 4.0 13.58
1964 40 13.41 4.0 13.41
1965 4.0 13.19 4.0 13.19
1966 40 12.83 4.0 12.83
1967 4.0 12.44 40 12.44
1968 4.0 11.94 4.0 11.94
1969 4.0 11.32 4.0 11,32
1970 4.0 10.71 4.0 10.71
1971 40 10.26 4.0 10.26
1972 4.0 9.94 4.0 9.94
1973 4.0 9.36 40 9.36
1974 4.0 8.43 4.0 8.43
1975 40 7.72 4.0 7.72
1976 4.0 7.30 4.0 7.30
1977 4.0 6.86 4.0 6.86
1978 4.0 6.37 4.0 6.37
1979 40 5.72 4.0 5.72
1980 40 3.04 4.0 5.04
1981 4.0 457 40 4.57
1982 4.0 4.31 4.0 4.31
1983 9.0 9.39 9.0 9.39
1984 9.0 9.00 15.0 15.00
1985 9.0 8.69 15.0 14.48
1986 9.0 8.53 15.0 14.22
1987 91 8.32 15.1 13.81
1988 9.1 7.99 15.1 13.26
1989 9.1 7.62 15.1 12.65
1990 41 11.21 20.1 15.98
1991 14.1 10.76 20.1 15.33

-27-


Transportation Sector Trust Fund General Fund Total Tax

Air Transportation®
1 Commercial aviation taxes
a. Air passenger ticket tax 10% of amount -0- 10% of amount
paid paid
b. International departure tax $6/passenger -0- $6/passenger
c. Domestic air cargo tax 6.25% of amount -0- 6.25% of amount
paid paid
d. Fuels -0- 4.3¢/gal. 4.3¢/gal.
2. General aviation taxes
a. Gasoline 15¢/gal. 4.3¢/gal. 19.3¢/gal.
b. Jet fuel 17.5¢/gal. 4 3¢/gal. 21.8¢/gal.

> Airport and Airway Trust Fund tax rates currently are scheduled to expire after December 31, 1996


Transportation Sector Trust Fund General Fund Total Tax

b. Tires
40 Ibs. or less -0- -0- -0-
40 - 70 Ibs. 15¢/Ib. -0- 15¢/b.
over 40 Ibs. over 40 Ibs.
70 - 90 Ibs. $4.50 plus -0- $4.50 plus
30¢/lb. over 30¢/Ib. over
70 Ibs. 70 Ibs.
Over 90 Ibs. $10.58 plus -0- $10.58 plus
50¢/Ib. over 50¢/Ib. over
90 Ibs. 90 Ibs.
c. Annual vehicle use tax
Under 55,000 Ibs. -0- -0- -0-
55,000 - 75,000 Ibs. $100 plus -0- $100 plus
$22 per 1,000 Ibs. $22 per 1,000 Ibs.
over 55,000 Ibs. over 55,000 Ibs.

Over 75,000 Ibs. $550 -0- $550


-9T-

VIL. HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON COMMERCIAL FREIGHT
TRANSPORTATION SERVICES, 1942-1996

Transportation service 1942-58 1958-70 1970-80 1980-82 1982-87 1987-90 1990 1991-96
Transportation of property 3% of amount -0- 5% -0- 5% 5% 6.25% 6.25%!
by air paid
Transportation of property 3% of amount -0- -0- -0- -0- -0- -0- -0-
by rail paid
Transportation of property 3% of amount -0- -0- -0- -0- -0- -0- -0-
by motor vehicle paid
Transportation of property 3% of amount -0- -0- -0- -0- 0.04% of 0.04% of 0.125% of
through U.S. harbors paid value of value of value of
commercial cargo cargo
cargo loaded
or unloaded
at U.S. ports

* 6.25% air cargo tax was expired during the period, January 1, 1996-August 26, 1996.


Il. ADMINISTRATION OF FEDERAL TRANSPORTATION EXCISE TAXES

Tax

Point of Collection

Person Liable for
Payment

Remittance Schedule

Treasury Disposition

A. Major Fuels Taxes
1. Gasoline

(All gasoline is
taxed.
Exemptions are
realized through
consumer (or
vendor) refunds
of tax assumed to
be included in
price because of
payment earlier
in the product's
chain of
distribution.)

Removal from pipeline or
barge terminal ("terminal
rack"); removal from
refinery if fuel docs not
go to terminal (¢.g., truck
load pick ups at refinery).

Position holder (i.c.,
person holding inventory
position in terminal) or
refiner (if taxed on
removal from refinery).

Generally, semi-monthly
deposits, due 9 days after
end of semi-monthly
period when removal
occurs. For example, tax
on gasoline removed on
January | is deposited on
January 24. (A special
tule applies for fuel
removed during the
period September 16-26.)

Quarterly tax retums.

Revenues go to General
Fund first. Treasury then
transfers portions (other
than the General Fund
amounts) to Trust Funds:

(1) 15 cents/
gallon from general
aviation use to the
Airport Trust Fund.

(2) Generally, 14
cents/gallon from other
taxable uses to the
Highway Trust Fund,
with motorboat, small
engine, and trail vehicles
Trust Fund portions being
re-transferred to the
Aquatic Resources and
Recreational Trails Trust
Funds. (No transfers are
made to the Trails Fund
absent appropriations.)


Table 2.--Selected Federal Transportation Excise Tax Receipts, 1955-1995

(all figures in millions of nominal dollars)

Trust Fund Excise Taxes General Fund

Total Transportation Total Excise
Year Highway Airway Trust Fund Fuels Tax Receipts
1955 9,131
1956 9,929
1957 1,479 1,479 10,534
1958 2,026 2,026 10,638
1959 2,074 2,074 10,578
1960 2,539 2,539 11,676
1961 2,798 2,798 11,860
1962 2,949 2,949 12,534
1963 3,279 3,279 13,194
1964 3,519 3,519 13,731
1965 3,659 3,659 14,570
1966 3,917 3,917 13,062
1967 4,441 4,441 13,719
1968 4,379 4,379 14,079
1969 4,637 4,637 15,222
1970 5,354 5,354 15,702
1971 5,542 563 6,104 16,614
1972 5,322 649 5,971 15,477
1973 5,665 758 6,424 16,260
1974 6,260 840 7,100 16,844
1975 6,188 962 7151 16,551
1976 5,413 938 6,351 16,963
1977 6,709 1,191 7,900 17,548
1978 6,904 1,326 8,323 18,376
1979 7,189 1,526 8,937 18,745
1980 6,620 1,874 8,766 17,395
1981 6,305 21 6,711 17,587
1982 6,744 133 7,641 17,904
1983 8,297 2,165 11,214 23,165
1984 11,743 2,499 15,082 28,455
1985 13,015 2,851 16,894 29,644
1986 13,363 2,736 16,866 30,668
1987 13,032 3,060 17,613 32,457
1988 14,114 3,189 19,042 35,227
1989 15,628 3,664 21,239 34,386
1990 13,867 3,700 19,754 35,345

-22-


SELECTED BACKGROUND INFORMATION AND DATA
ON FEDERAL TRANSPORTATION EXCISE TAXES

Prepared for the Use
of the

HOUSE COMMITTEE ON WAYS AND MEANS

By the Staff
of the
JOINT COMMITTEE ON TAXATION
December 17, 1996

JCX-49-96



-~6-

Tax

Point of Collection

Person Liable for
Payment

Remittance Schedule

Treasury Disposition

Retail truck tax
and
manufacturers’
tire taxes

a. Truck tax

b. Tire tax

Heavy vehicle
use tax

Harbor
maintenance tax

Ship passenger
tax

Retail sale, or usc if that
occurs first.

Sale by manufacturer, or
use if that occurs first.

Use on highway.

Provision of
transportation.

Provision of passenger
transportation.

Retail dealer, or user if
collected on use.

Manufacturer.

Person in whose name
vehicle is registered for
highway use.

Transportation provider.

Transportation provider.

Same as gasoline tax.

Same as gasoline tax.

Due annually for period
July 1-June 30.
Taxpayers may pay in
quarterly installments.

Quarterly payment and
returns. (Collected by
Customs Service, not
IRS.)

Same as gasoline tax

Revenucs go to General
Fund first, and are then
transferred to the
Highway Trust Fund.

Same as retail truck tax.

Same as retail truck tax.

Revenues go to General
Fund, and then are
transferred to Harbor
Maintenance Trust Fund.

Revenues go to General
Fund.


Tax

Point of Collection

Person Liable for

Remittance Schedule

Treasury Disposition

Payment
14 cents/gallon to the
Highway Trust Fund.

4. Jet fuel Sale by producer, defined Producer. Same as gasoline tax. Revenues go to General
to include registered Fund first, with a portion
wholesale distributor, or of tax (17.5 cents/gallon)
use if that occurs first. ‘on general aviation fuel

then being transferred to
the Airport Trust Fund.

5. Inland Use in commercial Vessel operator. Paid quarterly with tax Revenues go to the

waterways fuels

-g-

B. Non-Fuels Taxes

1, Commercial
aviation
passenger and
freight taxes

transportation.

Payment for
transportation.

Consumer is liable for
payment; transportation
provider receiving
payment is liable for
collecting and remitting
tax.

return (i.¢., no separate
deposits required).

Same as gasoline tax, or
taxpayer can clect to
make deposits based on
when amounts are
"deemed collected." This
alternative allows
deposits to be made
approximately 15 days
later than under the
gasoline tax structure.

General Fund first, with
20 cents/gallon then
being transferred to the
Inland Waterways Trust:
Fund.

Revenues go to General
Fund first, and are then
transferred to the Airport
Trust Fund.


~6Z-

cents per gallon

20

Figure 3,--Nominal and Real Value of Federal Excise Tax Rate on Gasoline,

1955

1960

—+
1965

1970

1975

Year

1955-1995
pH
1980 1985

a

1990

—*- nominal ta
~—#— real tax rate 1984 dollars

1995


Nominal Real Nominai

Federal Federal Federal Real

Excise Taxes Excise Taxes Excise Taxes Federal

on Gasoline on Gasoline on Diesel Fuel on Diesel Fuel
Year (cents per gallon) (1984 cents per gallon) (cents per gallon) (1984 cents per gallon
1992 14.1 10.44 20.1 14.89
1993 18.4 13,23 24.4 17.54
1994 18.4 12.90 244 17.11
1995 18.4 12.54 24.4 16.63
1996 18.3 24.3

Source: Joint Committee on Taxation.

-28-


-¢-

Transportation Sector

‘Trust Fund

General Fund

Total Tax

Cc. Water Transportation

1. Harbor maintenance

2. Ship passengers

3. Commercial inland waterway fuels
4. Recreational boat diesel fuel*

D. Rail Diesel Fuel

0.125% of value
-0-

20¢/gal.

-0-

-0-

-0-
$3/passenger
4 3¢/gal.
24.3¢/gal.

5.55¢/gal.

0.125% of value
$3/passenger
24.3¢/gal.
24.3¢/gal.

5.55¢/gal.

* The tax on recreational boat diesel fuel has been suspended through December 31, 1997, by the Small Business Jobs
Protection Act of 1996. The rates stated above will apply for the period 1/1/98-12/31/99.


~6T-

Table 1.--Excise Tax Receipts in Millions of Dollars and as a Percentage of Total Federal Receipts, 1890-1995

Excise Excise Tax Excise Excise Tax
Tax Receipts as Tax Receipts as
(millions Percentage of (millions Percentage of

Year of dollars) Total Revenue Year of dollars) Total Revenue

1930 565 18.59 1956 9,929 13.31
1931 520 21.42 1957 10,534 13.17
1932 454 29.14 1958 10,638 13.36
1933 839 51.79 1959 10,578 13.35
1934 1,288 45,82 1960 11,676 12.62
1935 1,364 39.87 1961 11,860 12.57
1936 1,547 41.58 1962 12,534 12.57
1937 1,765 34.82 1963 13,194 12.38
1938 1,731 27.60 1964 13,731 12.19
1939 1,768 29.72 1965 14,570 12.47
1940 1,885 30.19 1966 13,062 9.98
1941 2,399 29.29 1967 13,719 9.22
1942 3,141 23.23 1968 14,079 9.20
1943 3,798 17.07 1969 15,222 8.15
1944 4,464 10.88 1970 15,705 8.15
1945 5,945 13.87 1971 16,614 8.88
1946 6,684 17.81 1972 15,477 TAT
1947 7,283 18.72 1973 16,260 7.05
1948 7,410 17.70 1974 16,844 6.40
1949 7,578 19.03 1975 16,551 5.93
1950 7,598 19.14 1976 16,963 5.69
1951 8,704 16.75 1977 17,548 4.94
1952 8,971 13.38 1978 18,376 4.60
1953 9,946 14.19 1979 18,745 4.05
1954 9,517 14.27 1980 24,329 4.70
1955 9,131 13.95 1981 40,839 6.81


USER FEES FOR TRANSPORTATION SERVICES
Federal Aviati dmini

Under PL 103-272 (Sections 45301 and 45302), the FAA has authority to impose a variety of
fees related to aircraft registration and airman certification, as follows:

- FAA currently charges between $30 and $960 for the various licenses and certificates it
issues to all types of aviation personnel including pilots, flight engineers, and mechanics.

- Under current law, FAA may charge up to $25 for aircraft registration certificates and up to
$15 for renewals. These fees are estimated to cover about one third of the actual costs of the
service provided.

- FAA may charge up to $7.50 for processing forms for major repairs and alteration of aircraft
fuel tanks and fuel systems

Money collected from these fees is credited to the Treasury account in which the expenses are
incurred and is available to the FAA Administrator to pay expenses for which the fees are
collected.

The FAA reauthorization P.L. 104-264 requires the FAA Administrator to establish a schedule of
new user fees for aircraft that overfly U.S. airspace, but neither land nor take-off at a U.S. airport.
Collections are limited to $100 million in 1997, and must be related to costs of providing the
service.

US Coast Guard

Marine oil spill prevention and clean-up activities are paid from three accounts (for operations,
capital. and R&D) financed by appropriations from the Oil Spill Liability Trust Fund (OSLTF).
FY 1997 appropriations from the OSLTF for the three accounts total $50 million. In addition, an
Emergency Fund (for major cleanups) is permanently funded at $50 million, and claims for
damages are paid from permanent funds of $10 million. A per-barrel tax on crude oil is
transferred into the OSLTF, but collection was suspended by operation of law designed to limit
the OSLTF cash balance.

Boating Safety -- This program promotes recreational boating safety by providing grants to
States to be used for State safety programs. such as enforcing local boating while intoxicated
laws and providing public boating safety education. The source of funding is the gas taxes that
are transferred into the Aquatic Resources Trust Fund (from the Highway Trust Fund) and paid
by recreational vessel owners.

Marine Inspections -- The Coast Guard conducts annual safety inspections (including

qualification of crews) of U.S. commercial ships and offshore facilities such as oil drill rigs. The
Coast Guard also issues Certificates of Documentation (similar to car registration) for these

~36-



vessels and facilities. Per the Omnibus Budget Reconciliation Act of 1990, the Coast Guard is
authorized to charge user fees for the inspection of vessels. Annual vessel inspection charges
range from $300 and $14,650 depending on vessel size and class.

Marine Licensing -- The Coast Guard issues licenses to merchant marine officers and documents
to vessel crewmen. These licenses and documents are renewed every five years. The charges for
initial issue for licenses and documents range between $52 and $272; renewal charges are
somewhat lower.

Res cial Pri

Pipeline Safety -- Under the authority of Section 16 of the Natural Gas Pipeline Safety Act of
1968 (NGPSA) and Section 213 of the Hazardous Liquid Pipeline Safety Act (HLPSA) of 1979.
RSP.A’s Office of Pipeline Safety (OPS) develops and enforces safety regulations for industries
that use pipelines as a mode of transportation for hazardous liquids and gases. This program is
fully financed by annual user fees from the pipeline industry.

In FY 1996, the fee structure was $77 per mile of pipe for the gas industry and $50 for the liquid
industry. Total fees collected in FY 1996 were approximately $31 million. In addition, the
program also received $2.6 million from the OSLTF.

Emergency Preparedness Grant program activities are financed from a $300 user fee levied on
about 27.000 shippers and carriers of hazardous materials.

Sai awrence Seaway Develo oration
The SLSDC collects two fees on non-cargo vessels for use of SLSDC locks:

- Military vessels and tugs $15 per lock transited
- Pleasure craft $10 per lock transited

The SLSDC aiso collects a passenger fee of $1.18 per passenger per lock transited.

-37-



General Fund

Transportation Highway Airport Trust
Year Fuels Trust Fund Fund
1991 TM% 40% 12%
1992 8% 37% 10%
1993 TMM% 38% Th
1994 17% 30% 9%
1995 15% 39% 10%

Source: Joint Committee on Taxation; Office of Management and Budget,
Historical tables, Budget of the United States Government, Fiscal
Year 1997; Joint Committee on Internal Revenue Taxation, Federal
Excise Tax Data. (JCS-2-67), May 1967; and selected years
of the Budget of the United States Government.

~25-


INTRODUCTION

Chairman Bill Archer of the House Committee on Ways and Means has appointed a
bipartisan task force of Members of that Committee to advise him on transportation excise tax
issues. The task force focus is studying the current structure of the Federal excise taxes imposed
on all transportation sectors--aviation, highway, water, and rail--and the reasons for that
structure. By letter of October 2, 1996, Chairman Archer requested the staff of the Joint
Committee on Taxation ("Joint Committee staff") to assist the task force on a continuing basis by
developing information needed for the task force's work. On November 14, 1996, the Joint
Committee staff supplied a first response to that request in a pamphlet, Present Law and
B round Informatio: Federal Trans, i xcise Ta: id Trust Fund Expenditure

Programs (JCS-10-96).

This document’ supplements the November 14, 1996 publication with additional
information on current Federal transportation excise taxes, including selected historical data.
The document (Appendix) also includes information received to date from Executive agencies
with regard to Federal fees imposed on transportation providers.

' This document may be cited as follows: Joint Committee on Taxation, Selected
round Ii ation ani ita on F. 1 Tran. ation Exci xes (ICX-49-96),
December 17, 1996.


IV. HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON GASOLINE,
DIESEL FUEL, AND LUBRICATING OIL USED IN HIGHWAY

Year

1932-1933
1933

1933-1939
1940-1942
1942-1951
1951-1956
1956-1959
1959-1983

1983

1984-1986
1987-1990
1990-1993
1993-1995

1996

VEHICLES, 1932-1996

Gasoline

l¢/gallon
1 S¢/gallon
1¢/gallon
1.S¢/gallon
1.5¢/gallon
2¢/gallon
3¢/gallon
4¢/gallon

9¢/gallon

9¢/gallon
9.1¢/gallon’
14.1¢/gallon
18.4¢/gallon

18.3¢/gallon

Diesel fuel

-0-

0-
-0-
2¢/gallon
3¢/gallon
4¢/gallon

9¢/gallon

9¢/galion
15.1 ¢/gallon
20.1 ¢/gallon
24.4¢/gallon

24.3¢.gallon

Lubricating oil used
in highway vehicles
4¢/gallon

4¢/gallon

4¢/gallon
4.5¢/gallon
6¢/gallon

6¢/gallon

6¢/gallon

6¢/gallon

Repealed.
after 1/6/83

-0-

-0-

' The gasoline tax was 9.0¢ per gallon for the period from September I, 1990 to November 30, 1990.

-12-


194]

1942-1943
1943-1946
1946-1960
1960-1962
1962-1969
1970-1981
1981-1982
1982-1986
1987-1990
1990-1991

1991-1996

VI. HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON
PASSENGER TRANSPORTATION SERVICES, 1941-1996

Transportation

of persons by air

5% of amount
paid
10%
15%
10%
5%
5%
8%
5%
8%
8%
10%

10% "

Transportation
of persons by rail

5% of amount
paid

10%
15%
10%
10%
-0-
-0-
-0-

-0-

' Tax expired during the period Janaury 1, 1996-August 26, 1996.

-14-

Transportation
of persons by bus

5% of amount paid

10%
15%
10%
10%
-0-
-0-
-0-
-0-
-0-
-0-

-0-


Table 2. Selected Transportation Excise Tax Receipts, 1955-1995 .......

Table 3. Selected Transportation Excise Tax Receipts as a Percentage of
Total Excise Tax Receipts, 1955-1995 .......... beet eee

Figure 2. Highway and Airport Trust Fund Excise Tax Receipts,
1957-1995 eee ee a

B. Nominal and Real Values of Selected Transportation Excise Taxes .. .

Table 4. Nominal and Real Value of Federal Excise Taxes on Gasoline and
Diesel Fuel, 1955-1995. 66...

Figure 3. Nominal and Real Value of Federal Excise Tax on
Gasoline, 1955-1995 .. 006.

Figure 4. Nominal and Real Value of Federal Excise Tax on
Diesel Fuel, 1955-1995... 2.02.0

C. Historical Prices of Highway Motor Fuels ..........0.0.00.0.0000000.

Table 5. Retail Price of Regular, Unleaded Gasoline and Diesel Fuel,
1976-1996 eee eee

Figure 5. Nominal Retail Price of Unleaded Regular Gasoline,
1976-1996 26 eee

Figure 6. Price of Unleaded Regular Gasoline in Real 1984
Dollars, 1976-1996 .6 0... eee

APPENDIX: Information Received from Executive Agencies in Response to

Joint Committee on Taxation Staff Requests Regarding Non-Tax Fees
Imposed on Transportation Providers ............0...... 0.0000

(iii)


Roane

5 oe,
2 a ¥ THE SECRETARY OF TRANSPORTATION
if oo WASHINGTON, D.C. 20590

%, <

ce nresal

Nov 22.1996

November 21, 1996

Mr. Kenneth J. Kies

Chief of Staff

Joint Committee on Taxation

1015 Longworth House Office Building
Washington, DC 20515-6453

Dear Mr. Kies:

This responds to your October 24th request for information and technical assistance for a special
task force on transportation tax issues. We appreciate your interest.

Per your request, we are now providing information on the various user fees that are charged to
transportation providers. We are also including information on the excise taxes that are paid by
transportation users. I hope that this information will be useful.

I understand that you have already received preliminary information on the highway cost
allocation study that is currently underway and on a study to identify the fully allocated costs of
providing services to various aviation users. Both studies should be completed shortly, and we
will then provide copies to you.

If] can be of further assistance, please contact me or Steven Palmer, Assistant Secretary for
Governmental Affairs at 202/366-4573.

Sincerely,

—Leamin GO
Federico Pefia

Enclosures

-35-



Trust Fund Excise Taxes General Fund

Total Transportation Total Excise
Year _Highway Airway Trust Fund Fuels Tax Receipts
1991 16,979 4,910 24,127 2,780 42,402
1992 16,733 4,645 23,733 3,512 45,569
1993 18,039 3,262 23,535 3,340 48,057
1994 16,668 5,189 23,999 9,402 55,225
1995 22,611 5,534 30,543 8,491 57,484

Source: Joint Committee on Taxation; Office of Management and Budget, Historical

tables, Budget of the United States Government, Fiscal Year 1997; Joint
Committee on Intemal Revenue Taxation, Federal Excise Tax Data, (JCS-2-67),
May 1967; and selected years of the Budget of the United States Government.

-23-



INTRODUCTION .... 2.0.00

I

Hl

Ik

IV

VI

VI

VIII

IX.

CONTENTS

CURRENT FEDERAL TRANSPORTATION EXCISE TAX RATES,
BY SECTOR AND FUND DEDICATION ..... 0.0... eee

ADMINISTRATION OF FEDERAL TRANSPORTATION EXCISE

TAXES 20 cece eee ee

HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON

~ AUTOMOTIVE-RELATED ITEMS, 1917-1996 00.0200

HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON GASOLINE,
DIESEL FUEL, AND LUBRICATING OIL USED IN HIGHWAY

VEHICLES, 1932-1996 020 n eee ee

HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON COMMERCIAL
TRANSPORTATION FUELS (OTHER THAN FUELS USED

IN HIGHWAY VEHICLES), 1980-1996 .................. ‘eve cee eee

HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON PASSENGER

TRANSPORTATION SERVICES, 1941-1996 10.0... 00. c cece eee eee

HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON FREIGHT

TRANSPORTATION SERVICES, 1942-1996 600.0...

HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON THE USE

OF TRANSPORTATION VEHICLES, 1932-1996 22.0.0... 0.2 e cee eee

SELECTED STATISTICAL INFORMATION ON FEDERAL EXCISE

TAXES occ tte e teen ee eee

A. Relationship of Excise Tax Receipts and Total Receipts ...............

Table 1. Excise Tax Receipts in Millions of Dollars and as a Percentage

of Total Federal Receipts, 1890-1995 66.0.0...

Figure 1. Excise Tax Receipts as a Percentage of Total

Federal Receipts 2.2.2... 0.0.2. c eee eee

N

10

12

13

14

16

17

18

18

18

21


C. Historical Prices of Highway Motor Fuels

Table 5.--Motor Gasoline Retail Price, U.S. City Average
(including taxes), in Nominal and 1984 Real Cents per Gallon,

1976-1996
Nominal Real
Unleaded Unleaded
Gasoline Price Gasoline Price
(cents | (1984 cents
per per

Year gallon) gallon)
1976 614 107.91
1977 65.6 108.25
1978 67.0 102.76
1979 90.3 124.38
1980, 124.5 151.09
1981 137.8 151.60
1982 129.6 134.30
1983 124.1 124.60
1984 121.2 116.65
1985 120.2 W171
1986 92.7 84.58
1987 94.8 83.45
1988 94.6 79.97
1989 102.1 82.34
1990 116.4 89,06
199} 114.0 83.70
1992 112.7 80.33
1993 110.8 76.68
1994 111.2 75.03
1995 114.7 75.26
1996 122.6 77.69

Source: Energy Information Administration, Department of

Energy, Monthly Energy Review, November 1996.

Note: Prices are annual average prices except for 1996 which

is the average price for September 1996.

-31-



-97-

$25,000

$20,000 +

$15,000

Millions

$10,000 +

$5,000

$0 +
1955

Figure 2.--Highway and Airport Trust Fund Excise Tax Receipts, Fiscal Years 1957-1995

1980

Highway

Airport

—e Highway |
[— Airport_|



1918

1919-23
1924-26
1927-28
1929-31
1932

1933-39
1940

1941-50
1951-55
1955-57
1957-61
1962-65

1966

1967-71
1971-80

1981-83

I. HISTORY OF FEDERAL EXCISE TAXES IMPOSED

Trucks,
buses
and
truck
trailers
3% of
manu-
facturers
price

3%

3%

3%

-0-
2%
2%
2.5%
5%
8%
5%
10%
10%

10%

10%
10%

10%

ON AUTOMOTIVE-RELATED ITEMS, 1917-1996

Pass-
enger
auto-
mobiles
3% of
manu-
facturers
price

3%

5%

3%

3%

-0-

2%

3%
3.5%
TM%

10%
10%
10%
10%

T% (6%
from
1-1-66 to
3-15-66)
TM%

-0-

-0-

Auto-
mobile
and truck
parts and

accessories

-0-

5% of
manu-
facturers
price
5%
2.5%,
-0-

-0-

2%

2%
2.5%
5%

8%

5%

8%

8%

8%
(repealed
on
automobile
Parts)
8%

8%

8%

~10-

Tires for use
on highway
yehicles

-0-

5% of
manu-
facturers
price
5%
2.5%
-0-

-0-
2.25¢Ab.
2.25¢Mb.
2.5¢/b.
S5efb.
8¢Ab.
8¢/ib.
8¢/Ab.
10¢/b.

10¢/b.

10¢fb.
10¢/b.
9.75¢/b.

Inner
tubes for
tires

-0-

5% of
manu-
factuers
price
5%
2.5%
-0-

-0-
4¢Ab.
4¢Mb.
4.5¢/b.
9¢/b.
9¢Nb.
S¢Ab.
9¢/b.
10¢/b.

10¢/b.

10¢/b.
10¢/b.
10¢/b.

Tread
rubber

-0-

S¢fb.
S¢Ab.
S¢éfb.


Vv. HISTORY OF FEDERAL EXCISE TAXES IMPOSED ON
COMMERCIAL TRANSPORTATION FUELS (OTHER THAN
FUELS USED IN HIGHWAY VEHICLES), 1980-1996

Year Rail Diesel Inland Waterway’
1980-1981 -0- 4¢/gallon
1981-1983 -0- 6¢/gallon
1983-1985 -0- 8¢/gallon
1985-1989 -0- 10¢/gallon
1990 2.5¢/gallon 1i¢/gallon
1991 2.5¢/gallon 13¢/gallon
1992 2.5¢/gallon 15¢/gallon
1993 6.8¢/galion 17¢/gallon
1994 6.8¢/gallon 19¢/gallon
1995 6.8¢/gallon 20¢/galion
1995-1996 5.55¢/gallon 20¢/gallon

1 Tax applies to fuels used by commercial cargo vessels on 26 designated inland and intracoastal
waterways.

-13-