i

A GUIDE

TO REPORTING

HIGHWAY

STATISTICS

Procedures for the compilation, analysis,

and reporting of:

! State motor-fuel, motor-vehicle,

driver-license and motor-carrier data

! Highway finance data of State and

local governments

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL HIGHWAY ADMINISTRATION

Office of Highway Policy Information
iii

TABLE OF CONTENTS

Page Number

iv List of Major Reporting Forms and Chapters Providing Instructions

v Preface

1-1 Chapter 1. General Procedures

2-1 Chapter 2. Reports Identifying Motor-Fuel Use and Taxation

3-1 Chapter 3. Report Identifying Motor-Vehicle Registrations and Taxation

4-1 Chapter 4. Report Identifying State Driver Licenses and Fees

5-1 Chapter 5. Report Identifying State Taxation of Motor Carriers

6-1 Chapter 6. Report Identifying Disposition of State Motor-Vehicle and 

Motor-Carrier Revenue

7-1 Chapter 7. Periodic Special Requests for Motor-Fuel, Motor-Vehicle,

Driver-License, and Financial Information

8-1 Chapter 8. Reports Identifying Highway Income and Expenditures of State

Governments

9-1 Chapter 9. Reports Identifying State Transportation Debt

10-1 Chapter 10. Reporting of Income and Expenditures for Toll Highway and 

Bridge Authorities

11-1 Chapter 11. Report Identifying Receipts and Expenditures of Local

Governments

12-1 Chapter 12. Report Identifying State Highway Capital Outlay and Maintenance

Expenditures

13-1 Chapter 13. Other Information Needs

APPENDICES

A Relationships Among Reporting Forms

B Data Reporting Templates and Electronic Data Transmission

C Reporting by U.S. Territories and Puerto Rico

D A Simplified Methodology for Reporting Local Highway Finance Data
 A sample of each form is included at the end of the chapter listed. 1

iv

LIST OF MAJOR REPORTING FORMS AND

CHAPTERS PROVIDING INSTRUCTIONS

Chapter Form1

2 FHWA-551M— Monthly Motor-Fuel Consumption

2 FHWA-556— State Motor-Fuel Tax Receipts and Initial Distribution by Collection Agencies

3 FHWA-561— State Motor-Vehicle Registrations, Registration Fees, and Miscellaneous Receipts

4 FHWA-562— State Driver Licenses and Fees

5 FHWA-571— Receipts from State Taxation of Motor Vehicles Operated for Hire and Other Motor

Carriers

6 FHWA-566— State Motor-Vehicle Registration Fees and Other Receipts: Initial Distribution by

Collecting Agencies

8 FHWA-531— State Highway Income

8 FHWA-532— State Highway Expenditures

9 FHWA-541— State Transportation Obligations Issued During Year and Allotment of Proceeds

9 FHWA-542— Status of State Transportation Debt

9 FHWA-543— State Transportation Sinking Fund and Debt Service Transactions (Optional)

10 FHWA-539— Toll Facility Income and Expenditures

11 FHWA-536— Local Highway Finance Report

12 FHWA-534— State Highway Capital Outlay and Maintenance Expenditures
v

PREFACE

A Guide to Reporting Highway Statistics is a principal part of the Federal Highway Administration’s (FHWA)

comprehensive highway information collection effort. The Congress recognized the need for information to support

highway policy development and created the Office of Road Inquiry in the Department of Agriculture in 1893. As early as

1904, the Federal Government began inquiring about highway taxation, sources of revenue for highways, and highway

expenditures. The role of the Federal Government in highway transportation has changed greatly since 1893, but its role

in assembling highway data has continued.

The Department of Transportation (DOT) Act of 1966 (Pub. L. 89-670), which brought together the Federal programs for

many modes of transportation into a single, Cabinet level organization, charges the Secretary of Transportation to promote

and undertake development, collection, and dissemination of technological, statistical, economic, and other information

relevant to domestic and international transportation. The DOT is also authorized to engage in studies to collect data

concerning highway planning, development, financing, construction, operation, modernization, maintenance, safety, and

traffic conditions and to publish the results of such research (Title 23 U.S. Code, section 307(a)). 

Certain data are needed by the FHWA to meet its responsibilities to Congress and the public. “These data include but are

not limited to information required for proposed legislation and reports to Congress; evaluating the extent, performance,

condition and use of the Nation’s transportation systems; analyzing existing and proposed Federal-aid funding methods and

levels, and the assignment of user-cost responsibility; maintaining a critical information base on fuel availability, use, and

revenues generated; and calculating apportionment factors.” (Title 23 U.S. Code, section 420.105 (b)). The forms and

instructions in A Guide to Reporting Highway Statistics are designed to address this need. 

A Guide to Reporting Highway Statistics was first issued in 1979 to organize into one volume the instructions for various

reporting forms and other related data needs that had been issued over a period of several years. The Guide was revised

and reissued in 1982 following an extensive review and a concerted effort by the FHWA to reduce the burden of reporting

highway statistics. The Guide was also reissued in 1985, 1987, 1990, 1994 and 1997. This edition continues previously

established reporting requirements with the addition of minor modifications and clarifications to some forms and the

instructions.

This Guide has two objectives:

1) To serve as a reference to the reporting system that the Federal Highway Administration desires the States to use

in reporting State and local highway statistical data.

In consultation with the States, FHWA has designed a series of reporting forms to account for motor-fuel consumption;

motor-vehicle registrations; driver licensing; motor-carrier taxation; and the source, distribution, and expenditures of funds

for highways. This Guide presents detailed procedures for the preparation and submission of these forms; page iv lists

each form and identifies the chapter in which it is discussed. 

In addition to these periodic reports, the FHWA needs other information from the States for various program and policy

analyses and to perform its role as a national clearinghouse for highway statistics. This includes supplemental tabulations

concerning motor fuel, motor vehicles, and driver licenses; specialized financial reports; and copies of State highway laws. 

The Guide outlines the types of additional information that the States should try to systematically obtain and forward to the

FHWA as part of the ongoing cooperative process of compiling highway statistics.

2) To foster a working understanding of the unified concept behind the national reporting system for highway

statistics and of the interrelationships among different reporting areas. This objective is the chief reason why

different reporting areas— fuel, vehicles, licenses, and finance— have been covered in a single volume instead of a

separate volume for each area. This Guide is intended as a companion volume to FHWA's Highway Performance
vi

Monitoring System Field Manual. The two guides together provide the rationale and procedures involved in the

national reporting system for highway statistics.

The FHWA recognizes that many of the State planners and analysts who complete the reporting forms are responsible for

several different reporting areas and, thus, need to understand how the different reports interrelate, why certain forms

require reconciliation, and how to accomplish it. They need a broad enough understanding— beyond the details of the

individual reports— of the national reporting system to be able to assure effective coordination of their work with the other

State and local agencies involved in the process of compiling highway statistics as well as with the FHWA. This is

important, because the FHWA needs a consistent, comprehensive overview of the source and application of funds for

highway purposes for each State to be able to build a comparable overview for the Nation.

The reports covered in this Guide are used to develop highway legislation and to keep Congress and the State governments

informed. They are indispensable to the development of FHWA national tables and other publications; and they aid

highway planning, programing, budgeting, forecasting, and fiscal management. When published, these statistical

information developed from these reports are also used by other Federal agencies, local governments, the private sector,

academic institutions, and national organizations. 

The Guide, along with other FHWA documents (Highway Statistics, Highway Taxes and Fees, and the HPMS Field

Manual) may be accessed at the FHWA web site at http://www.fhwa.dot.gov/ohim.

DISCLOSURE OF ESTIMATED BURDEN

Public reporting burden for this collection of information is estimated to vary from 4 hours to 380 hours per form, with an

average of 22.4 hours per form, including time for reviewing instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the

burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to:

Federal Highway Administration

Office of Highway Policy Information, HPPI

400 Seventh Street, SW.

Washington, D.C. 20590; 

and to:

Office of Information and Regulatory Affairs

Office of Management and Budget

Washington, D.C. 20503.
vii

Estimated Reporting Burden

 Form Average Response Time

FHWA-531 40 hours

FHWA-532 40 hours

FHWA-534 9 hours (average of 14 responses per State per year)

FHWA-536 380 hours (annually. Biennial total of 760 hours)

FHWA-541 5 hours 

FHWA-542 4 hours

FHWA-551M 6 hours (12 responses per year per State)

FHWA-556 12 hours

FHWA-561 32 hours

FHWA-562 15 hours

FHWA-566 24 hours

FHWA-571 12 hours

Expiration Date

The expiration date for this approval is 3/31/2003.
1-1

CHAPTER 1

GENERAL PROCEDURES

This chapter presents a brief overview of: (1) some To identify motor-fuel consumption and motor-vehicle

considerations involved in determining which State unit use including the receipts and distributions from State

should be responsible for developing, coordinating, and highway-user taxation:

evaluating highway-related data for the Federal Highway

Administration's (FHWA) information needs; (2) the FHWA-551M Monthly Motor Fuel Consumption

FHWA's series of reporting forms and general

procedures, including due dates for their submission by FHWA-556 State Motor-Fuel Tax Receipts and

the States; and (3) the procedures that the States should Initial Distribution by Collection

follow in developing and reviewing the reports before Agencies

sending them to the FHWA.

Responsibility for highway statistics.— The objective of

this Guide is to develop a consistent, coordinated and

comprehensive national overview on specific aspects of

State and local transportation. For the various FHWA

report forms, data are collected from several State

agencies and departments, and from many local units of

government A central location within the State DOT

can effectively insure the consistency, accuracy, and

comprehensiveness of the information by coordinating

the State’s data reporting efforts. The planning division

of the State highway agency often assumes the role of

clearinghouse for highway statistics on a Statewide basis

to serve its own data needs and those of the Governor,

the State legislature, and other State agencies. The

FHWA suggests that the unit responsible for

coordinating highway-related data within the State should

also be responsible for coordinating the reporting of such

data to the FHWA.

FHWA State Planning and Research (SPR) Program

funds are available to all States to defray the cost of

obtaining and reporting statistical information to FHWA. 

The FHWA strongly encourages States to include the

data collection and reporting activities of A Guide to

Reporting Highway Statistics in their annual SPR

programs (Title 23 U.S. Code, section 420.105 (a)).

FHWA reporting forms.— The FHWA has designed a

series of reporting forms to account for certain

quantitative and financial aspects in two major areas

relating to highway transportation , i.e., highway use -

the ownership and operation of motor-vehicles on the

nation’s highways; and highway funding - the receipts

and expenditures for highways by public agencies. The

forms are listed below by category.

FHWA-561 State Motor-Vehicle Registrations,

Registration Fees, and Miscellaneous

Receipts

FHWA-562 State Driver Licenses and Fees

FHWA-566 State Motor-Vehicle Registration

Fees and Other Receipts: Initial

Distribution by Collecting Agencies

FHWA-571 Receipts from State Taxation of Motor

Vehicles Operated for Hire and Other

Motor Carriers

To identify the highway funding activities of State and

local governments:

FHWA-531 State Highway Income

FHWA-532 State Highway Expenditures

FHWA-534 State Highway Capital Outlay and

Maintenance Expenditures

FHWA-536 Local Highway Finance (Required

biennially for odd-numbered data years,

optional for even-numbered data years) 

FHWA-539 Toll Facility Receipts and

Disbursements (Optional form)

 

FHWA-541 State Transportation Obligations Issued

During Year and Allotment of Proceeds

FHWA-542 Status of State Transportation Debt

FHWA-543 State Transportation Sinking Fund and

Debt Service Transactions (Optional

form) 
1-2

FHWA report timing.— States may report on either a

calendar or State fiscal year basis. That choice

determines the due date for most of the FHWA forms. 

The FHWA report forms fall into the following two

groups:

The following forms are due on January 1, if prepared on

a State fiscal year basis, or April 1, if prepared on a

calendar year basis: additional special instructions in Chapter 4.

FHWA-531 The due dates have been set as late as possible to permit

FHWA-532 the States the maximum time for preparation of the

FHWA-539 FHWA reports while allowing FHWA a reasonable

FHWA-541 amount of time for review and subsequent compilation of

FHWA-542

FHWA-543

FHWA-556

FHWA-561

FHWA-562

FHWA-566

FHWA-571

The remaining reports are due as follows: 

FHWA-534 February 15 if prepared on a fiscal year

basis, May 15 if prepared on a calendar

year basis. 

FHWA-536 Required biennially for odd-numbered

data years, and due on October 1 of the

following even-numbered year. (For

example, data for calendar or fiscal

years ending in 1995 would be due

October 1, 1996.) Reporting for evennumbered data years is optional. 

FHWA-551M Due 90 days after the close of the month

for which fuel volume data are being

reported. (For example, the June report

is due September 1.)

All forms reporting on State highway funding activities

must be prepared on the same basis and for the same

reporting year. If forms FHWA-531 and FHWA-532 are

developed on a fiscal year basis, then form FHWA-534

for State highway capital outlay and maintenance

expenditures and the FHWA-540 series forms for State

transportation debt must be prepared on the same fiscal

year basis. 

Forms identifying motor-fuel consumption and motorvehicle use and the related receipts and distributions of

State highway-user taxation, FHWA-556, FHWA-561,

FHWA-562, FHWA-566, and FHWA-571 do not need

to be prepared on the same reporting year as the report

forms for the highway funding activities of State

governments. States should evaluate each of these forms

individually, to determine if it will be easier to prepare

them on a calendar or fiscal year basis.

States choosing to report driver license information, form

FHWA-562, on a fiscal year basis should note the

State information into summaries for Highway Statistics. 

The staggered due dates for calendar and fiscal year

reporting allow FHWA to process and analyze State data

more efficiently. For the majority of States with fiscal

years ending June 30, fiscal year reporting allows an

extra three months for report preparation over States that

choose calendar year reporting. The due dates are

considered to be reasonable targets that all States can

meet by using modern information systems and efficient

management practices. 

The State and FHWA Division office should work out a

schedule that provides for timely reporting. This will

ensure their receipt in FHWA's Washington

Headquarters on or about the due dates, and will afford

adequate time for report review in the FHWA Division

offices.

State review of reports.— In reviewing the reports prior

to releasing them to FHWA, the State highway planning

division or State coordinating office should compare the

entries with the basic report cross checks listed in

Appendix A. A comparison should also be made with

equivalent entries on the preceding year's reports. 

Particular attention should be given to any reviews and

evaluations of prior reporting by the FHWA's

Washington Headquarters or field offices. 

The FHWA's Washington Headquarters on occasion

finds it necessary to request supplemental statements or

comments from the State to obtain a better understanding

of the data, of the relationship of one report to another, or

to maintain uniformity in the statistics. By comparing the

requests of the prior year with the material assembled for

the current year, the State highway planning division or

coordinating office will be able to judge whether the

current reports are sufficiently detailed and, thus,

minimize the possibility of a repetition of requests for

additional information and the attendant delays.
1-3

The State's review should also take into account changes developing and providing the monthly report form

out of the ordinary in either the magnitude of amounts or FHWA-551M.

the appearance or disappearance of entries in the current

reports compared with prior years. Legislative

enactments, court decisions freezing or releasing funds,

and policy and program changes can all cause substantial

changes in the data reported. Whether addition or

deletion of entries, or increases or decreases in amounts,

significant changes should be explained in footnotes to

the reports or in transmittal letters. 

The test of what constitutes a significant change is a

matter of judgment that the State is in the best position to

make. The mere fact that highway revenues or

expenditures have increased or decreased is not

noteworthy. However, when changes are the result of

extraordinary circumstances, they should be noted.

Reporting to FHWA.— As a general procedure, each

report should be forwarded to the FHWA Division office

when completed. The FHWA Division office should

review all forms submitted and forward the original to

the Washington Headquarters, attention, Office of

Highway Policy Information, HPPI.

The State and FHWA Division office should not delay

sending in a number of reports when one report is

incomplete. When a report is expected to be delayed

beyond the due date, the State should notify FHWA of the

delay, giving the probable completion date. In extreme

circumstances, estimates may have to suffice when the

classification or segregation of certain items is expected

to be significantly delayed or is unattainable.

As an option, but only with the concurrence of the

FHWA Division office, highway statistical reports may

be transmitted directly to the Washington Headquarters

by the State. When this option is followed, the State

should provide copies to the FHWA Division office. 

Microcomputer templates in Lotus 1-2-3 are available

for reporting data for all forms included in this Guide. 

States are encouraged to use the microcomputer

templates for these forms when reporting to FHWA. See

Appendix B for information about these templates and

options for electronic transmission of data to FHWA.

In lieu of using the various report forms included in this

Guide, the Commonwealth of Puerto Rico and the U.S.

Territories— American Samoa, Guam, the Virgin Islands,

and the Commonwealth of the Northern Mariana

Islands— may provide the information shown in

Appendix C. Although the Commonwealth of Puerto

Rico may elect to use this option, it is still responsible for

Metrication.— States have the option of reporting

information on form FHWA-551M in either metric or

English units of measurement. Motor-fuel use may be

reported in either gallons or liters. The units of

measurement used must be indicated on forms

FHWA-551M in the space provided.

FHWA Adjustments - All of the State-reported data are

analyzed by FHWA for consistency and for adherence to

reporting guidelines. In a number of cases, data may be

adjusted or modeled to improve consistency and

uniformity across the States. The analysis and

adjustment is accomplished in close consultation with the

State supplying the data. In cases where Federal funds

distribution relies on State-reported data, FHWA may, as

a final resort, adjust State data where insufficient

justification for year-to-year change exists.
2-1

CHAPTER 2

REPORTS IDENTIFYING MOTOR-FUEL USE AND TAXATION

This chapter covers the reporting of State motor-fuel order to treat States equitably in motor fuel attributions,

consumption and motor-fuel tax revenues. Form and include information from all States in the national

FHWA-551M, Monthly Motor-Fuel Consumption, summary tables published in Highway Statistics on a

provides for the monthly reporting of motor-fuel volume comparable basis, the FHWA often has to adjust parts of

data. Form FHWA-556, State Motor-Fuel Tax Receipts the States' submissions. The adjustment process fits the

and Initial Distribution by Collection Agencies, provides data to uniform categories so that national characteristics

for the annual reporting of revenue data. The data and trends can be analyzed and projected. Refer to

reported on form FHWA-551M are widely considered to page 1-4 for a general policy statement on FHWA

provide the most complete and accurate information on adjustments to the data.

gasoline usage, and as such, are invaluable for a variety

of analyses within the Department of Transportation and FHWA ADJUSTMENTS TO STATE DATA

by other agencies. The data also provide the source for

the report Monthly Motor Fuel Reported by States. Both

forms FHWA-551M and FHWA-556 are used in

compiling tables which are published in the annual

Highway Statistics. These tables showing motor-fuel

volume by tax status and by use and motor-fuel revenues

are extensively used for highway planning and highwayuser tax revenue projections. 

This chapter contains the following parts: (1)

introduction and background, (2) a discussion of the most

common adjustments that the FHWA makes to the State

motor-fuel data; (3) instructions for form FHWA-551M,

including submission instructions, a discussion of the fuel

type columns of the form, assessment data, International Federal Government highway gasoline use.— Most

Fuel Tax Agreement (IFTA) data, line-by line entries, States exempt from taxation gasoline used by the Federal

and notes and technical information descriptions; and Government, including the military. Since the only

(3) instructions for form FHWA-556, which covers Federal use of gasoline included in FHWA tables is

reporting of the revenue data related to motor fuel highway civilian use, the FHWA estimates this category

volumes. for most States based on information obtained from

Background the FHWA estimate is presumed to be either civilian

The volume data are used by FHWA to attribute Federal

Highway Trust Fund receipts to the States, which in turn

are used in the Federal-aid highway fund apportionment

process. Highway motor fuel consumption data impact

the distribution of Federal-aid highway program funds in

the following program categories: Interstate

Maintenance (IM), National Highway System (NHS),

Surface Transportation Program (STP), and the

90.5 percent Minimum Guarantee.

The FHWA recognizes that the States' motor-fuel

information systems, and, therefore, the data they are able

to submit, are organized primarily for the purpose of

administering State fuel-tax programs. Because of

variations in individual State requirements, reported data

are sometimes not comparable among the States. In

Generally State motor-fuel taxes are levied on road users,

and refunds of the taxes paid or exemptions to the tax are

given for nonhighway use of motor fuel. However, not

all States offer refunds or exemptions for all classes of

nonhighway use, and not all available refunds are actually

claimed. Thus, often the net volume of fuel taxed is not

the same as the volume consumed on highways. 

Consequently, it is necessary to make various

adjustments to the tax-status information provided by the

States to show fuel volume on a use basis when used for

motor fuel attribution and published in Highway

Statistics.

Federal agencies. State-reported Federal use in excess of

nonhighway or military use and is eliminated from the

Federal figure reported by the State as well as from the

gross volume.

State and local government gasoline use.— Most States

exempt from taxation gasoline used by State and local

government entities or offer refunds of the tax paid, and

many States are not able to provide a segregation

between highway and nonhighway uses. In such cases,

FHWA must estimate the segregation to arrive at a

highway use figure for the State.

Off-highway and public use of special fuels (diesel and

liquefied petroleum gases).— In order to include

comparable data for all States in the national summary

tables, the FHWA has chosen to show only private and

commercial highway use of special fuels in its
2-2

consumption tables. (Transit use, regardless of the Office of Highway Policy Information (HPPI-10)

ownership of the transit system, is treated as private and Federal Highway Administration

commercial use.) Many States exempt from taxation all Washington, D.C. 20590

off-highway use and public use— use by Federal, State,

and local government entities. This, coupled with the Electronic transmittal of the data is encouraged. See

fact that the special fuel taxes in some States are imposed Appendix B for further information. Direct transmittal to

at the retail level, makes it impossible for some States to the Washington Headquarters does not preclude review

report off-highway and/or public use. FHWA deducts by the FHWA Division office.

any identifiable nonhighway or public use of special fuels

in the State-reported figures. Form FHWA-551M should be transmitted to the FHWA

Gasohol.— While many States can differentiate gasohol

from gasoline and report them as separate fuel types, few

States recognize the same types of gasohol as does the

Federal Government. For compatibility with Federal

definitions, and to treat all States equitably, (including

those that can not report gasohol separately) FHWA

developed a model to estimate gasohol usage in all

States. The model uses Internal Revenue Service

gasohol tax collections by Federal gasohol type as control

totals, allocating State-reported gasohol gallons to States

that meet reliability criteria, estimates gasohol usage in

the States where data does not meet reliability criteria,

and leaves out of the calculation States with no gasohol

usage. The results of the model are reported as gallons of

gasohol by Federal type, and is used in the attribution of

motor fuel tax receipts.

Gasoline loss allowances.— A majority of States allow

the gasoline wholesaler and/or retailer a flat percentage

allowance against the tax owed for losses in storage and

handling or, in some cases, for both losses and the

expense of tax collection. Analyses of data from States

that allow only actual losses to be claimed have shown

that actual losses seldom exceed one-half of 1 percent. 

Therefore, where a flat percentage loss allowance is

involved, FHWA allows a maximum of 1 percent for

such losses in its usage tables. Since retailers sell fuel at

a tax-included price, FHWA considers that the loss

volume in excess of 1 percent is actually taxed (even

though the State does not receive the money) and used on

the highways. Since the FHWA intent is to show the

actual fuel volume on which tax is paid and that is used

on the highways, appropriate adjustments are made in the

State data. The State should report all gallons subject to

its loss allowance; FHWA will make the adjustment

described as part of its analysis.

INSTRUCTIONS FOR FORM FHWA-551M

Form FHWA-551M should be completed by the State

agency that collects the motor-fuel tax. A copy of

FHWA-551M should be sent directly from the agency

preparing it to:

Washington Headquarters not later than 90 days after the

close of the month for which data are being reported. 

Information that is not available on a monthly schedule

should be included on the next monthly report submitted

after it becomes available; its presence and the period

covered by the amount(s) should be noted (e.g.,

"Gasoline and gasohol refunds shown in items 4.a. to h.

on page 1 of this report cover the July 1 - September 30

period."). Similarly, the absence of such an item should

be noted on the monthly reports where it is not available

(e.g., "Gasoline and gasohol refunds are available

quarterly only and will next be reported on the

September report."). 

Identifying Information

In the upper, right-hand corner of form FHWA-551M,

there is space for the following entries:

State.— Enter the State name. 

Year and month of sale or transfer.— Enter the calendar

year and the month for which the data are reported in the

blanks provided.

The month entered should be the month of sale or

transfer of the fuel volume being reported, rather than the

month that tax collections are received by the State or the

month that the FHWA-551M is submitted to FHWA. 

For example: In a State with a wholesale gasoline tax,

the tax on a wholesale transaction that takes place in

January is remitted to the State in February; the fuel

volume for this transaction should be reported on the

January report. This is only a general rule.

There is no need to revise reports in the event of late tax or to report audit assessments. Such items should be

returns, to compensate for the lag in claims for refunds, included on the next monthly report.
2-3

Reporting Assessment Data estimate the gallons by showing the computation using

Assessments are taxes which the State determines,

through audits or reviews of taxpayer returns, that the

taxpayer owes and did not previously report and pay.

This data is typically months or even years behind the

date of sale or transfer, and therefore somewhat distorts

periodic motor fuel reporting. However, its reporting, no

matter how late, is important. The following paragraph

discuss how to report assessment data

The fuel volume represented by assessments or late

returns should be reported for the month in which

payment is received, or on the first FHWA-551M

submitted following the month in which this information

becomes available. The volume reported for assessments

should be included in item 1., Gross Volume Reported,

and described in a note on page 2. Gallons from audit

assessments should be reported in the month collected,

since it is unrealistic to adjust reports that may be many

months or years old. Actual collections are reported to

assure that sometimes lengthy appeal procedures have

been exhausted and the assessment is ultimately sustained

before being included in the gallons reported.

Assessments that cannot be collected should not be

included; however, gallons represented by these

assessments can be reported, with a note describing them

as gallons consumed (but no revenue was collected) on

the highways in the State.

Units.— Check the appropriate box to indicate the units

of measurement— gallons or liters— used in the report. 

To prevent errors, FHWA recommends that form

FHWA-551M be reported in the same units in which the

fuel-tax records are kept.

Instructions for Entering Fuel-Type Data in the

Columns of Form FHWA-551M

Fuel type.— Columns (1) through (4) provide for

reporting volume by fuel type. The following definitions

are used for fuels to be reported in columns (1) and (2). 

If the State's definition of a fuel differs from the

corresponding definition in this section, provide the

volume data for the fuel on page 1 of the form and record

the State's definition of the fuel in a note on page 2. This

should be done once a year (on the January report) unless

the definition changes. Both motor gasoline and aviation

gasoline as defined below should be reported in column

(1). Include in “Notes and Comments” (page 2)

information on alternative fuel use (other than those

covered below), in whatever quantity available. To the

extent possible, use Federal definitions of fuel types. 

Where decal fees are used in lieu of per gallon taxes,

the decal fee formula (annual amounts can be reported in

the month collected).

Motor Gasoline: A complex mixture of relatively

volatile hydrocarbons with or without small quantities of

additives, which have been blended to form a fuel

suitable for use in spark-ignition engines. (10 CFR, 211-

225, Appendix A)

Aviation Gasoline: Aviation gasoline includes only

gasoline used in airplanes with internal combustion,

piston engines (not jets or turboprops). A more technical

definition is: petroleum-based fuel designed for use in

aircraft internal combustion engines and complying with

MIL-G-5572 specification (or ASTM specification

D-91-79). Note: Jet fuel should not be included. FHWA

will supply aviation gas use if not reported.

Neat alcohol: Any liquid at least 85 percent of which

consists of methanol, ethanol, or other alcohol produced

from a substance other than petroleum or natural gas. 

Neat alcohol should be included with gasoline in

column (1) and quantities, if known, should be shown in

a note on page 2 of the form.

Gasohol: A blend of motor gasoline with alcohol in

which 5.7 percent or more of the product is alcohol. The

term alcohol includes methanol and ethanol but does not

include alcohol produced from petroleum, natural gas, or

coal, nor does it include alcohol with a proof of less than

190. Fuels meeting these criteria should be entered in

column (2) and the volume entered should include both

the gasoline and alcohol components of the fuel. 

Amounts reported in column (2) should be excluded

from column (1). All other gasoline-alcohol blends

where alcohol is less than 5.7 percent of the finished

volume should be included with gasoline in column (1).

Federal law defines three different types of gasohol: (1)

5.7 percent gasohol, where the alcohol content is at least

5.7 percent but less than 7.7 percent; (2) 7.7 percent

gasohol, where the alcohol content is at least 7.7 percent

but less than 10 percent; and (3) 10 percent gasohol,

where the alcohol content is at least 10 percent. A

stratification of the gross volume reported in column (2)

into these three types should be entered in item 3. on

page 2 of the Form. Either actual volume or percentage

shares may be reported.

Typically, current State fuel tax laws recognize only the

10 percent blend as gasohol, but a number of States

provide for alcohol producer or blender credits for other

blend ratios. Records of such credits may be a source of

data for completing form FHWA-551M. The lower blend
2-4

ratios are sometimes used to meet the oxygenated fuel obtain this information from another source. All States

requirements for areas not meeting the National Ambient and Canadian Provinces except Alaska, Hawaii, and

Air Quality Standards. The State implementation plan Oregon use IFTA provisions for taxing motor fuel used

(SIP) for meeting air quality standards may be another by interstate motor carriers. (There is little or no

source for gasohol information. Note that oxygenated interstate motor-carrier travel in Alaska, none in Hawaii,

gasoline made with ethers (MTBE or ETBE) is not

gasohol and should be reported in column (1) as gasoline.

For any State where gasohol is sold, the amount should

be identified in column (2), or marked “N/A” for data not

available. And the quantities by percentage blend should

be shown on page 2, or marked “N/A.” FHWA will

estimate quantities of gasohol by percentage wherever

N/A is noted.

Diesel fuel volume (private and commercial highway-use

only) should be entered in column (3). Dyed diesel fuel

should never be included in column (3) since dyed diesel

fuel is not sold for highway use in highway vehicles.

Kerosene should be included in column (3) only if sold or

blended for highway use in private, public transit, or

commercial vehicles.

Liquefied petroleum gases (LPG), including butane,

propane, and liquefied compressed gas, should be entered

in column (4) if information is available on its private and

commercial highway-use.

Note: Several lines in columns (3) and (4) are shaded. 

For States that tax diesel and LPG at the retail sale level,

i.e., when they are placed in the tank of a highway

vehicle, items such as losses and refunds are generally

not applicable. Those States that tax diesel and LPG at

the wholesale level and for which losses and refunds are

applicable, should subtract from the gross amounts actual

losses and refunds for off-highway use and enter the

resulting number in item 1, Gross Volume Reported. If

the State prefers, it may show the actual gross volume

along with exempted and refunded fuel volumes and

provide the detail necessary for FHWA to deduct losses

as well as nonhighway and public use.

Column (5) is the total of columns (1) through (4).

International Fuel Tax Agreement (IFTA)

Considerations.— Interstate motor-carrier fuel use is

treated differently from other fuel categories. The intent

is to tax major interstate fuel users (typically motor

carriers), on the basis of the quantity of fuel used within

the State rather than on the basis of fuel purchased in the

State. All fuel volume taxed on a use basis should be

reported as IFTA usage. While most of the motor fuel is

diesel, gasoline and special fuels are reported. In some

States, motor carriers report to a State agency other than

the fuel-tax agency; therefore, it may be necessary for the

agency responsible for completing form FHWA-551M to

and Oregon imposes a weight-distance tax in lieu of a

fuel-volume tax on vehicles regulated by the Public

Utility Commissioner.) 

Motor Carriers file IFTA reports quarterly. The IFTA

returns, compiled by one of several IFTA processing

centers (or by the State itself) are submitted to other

States in the second month after the quarter ends. Each

IFTA member receives a quarterly report from every

other member which includes the net taxable gallons

(positive or negative) accumulated from all the baseState carrier returns for that period. The sum of these net

adjustments is the amount to be added or subtracted from

the motor fuel gallons reported. Gallons of motor fuel

are always tabulated on the State IFTA reports, and

should be obtained from your State’s revenue

department. If not, the gallons may be calculated by

dividing the net dollars (less penalty and interest) by the

tax rate of the State where the fuel was consumed. The

quarterly net data should be included on the

FHWA-551M monthly motor fuel report (in the month it

becomes available) as an adjustment to the total gallons

of special fuel used in a State

Line-by-line Instructions

Item 1. Gross Volume Reported.— Show as accurately

as possible the total consumption of motor fuel within the

State during the month. The data reported are needed by

FHWA for the monthly motor-fuel analysis and are the

starting point for the annual motor-fuel consumption,

taxation, and attribution analyses.

The starting point for gross volume is the tax returns of

sellers (position holders at fuel terminals, wholesalers, or

retailers depending on the point of taxation in the State). 

Include the gross sales reported by these taxpayers,

including fully taxed sales, exempt sales, volume subject

to full or partial refund, and sales taxed at a reduced rate. 

Include gasoline volume subject to exemption due to

actual loss or subject to shrinkage allowance. Aviation

gasoline, but not jet fuel, should be included in the gross

gasoline volume. Exclude export sales and dealer-todealer sales exempted to prevent duplication of tax

payments. Also exclude sales of special fuels to

government agencies, actual losses of special fuels, and

nonhighway use of special fuels.

Next, the tax returns of users (generally IFTA returns)

must be incorporated. The gross volume reported by the

sellers should be adjusted to reflect net use in the State. 

To the gross sales volume as described above, net IFTA
2-5

gallons must be added. To determine the net IFTA As discussed on page 2-2, flat percentage loss

position of a State, add the fuel volume transferred in allowances are capped at 1 percent for gasoline, even if a

from other States, then deduct the fuel volume transferred larger percentage is allowed by the State. For diesel fuel,

to other States. The net IFTA position may be positive or all losses should be deducted from the gross reported on

negative. Enter the combined gross sales volume and net Line 1. Flat percentage losses for diesel are generally not

IFTA calculation in item 1, Gross Volume Reported. To applicable, but if allowed by the State, these losses

supplement the volume information, item 2 on page 2, should be excluded from gross gallons reported on Line

Computation of Gross Volume Reported, should be 1. A description of the percentage allowance and

completed. Note that the adjustment must reflect both number of gallons excluded should be included under

motor fuel reported directly to the State and that reported “Notes and comments,” page 2.

through IFTA agreements.

Some States retain only revenue data from the tax returns prompt payment of taxes due, or for expense incurred by

of motor carriers and cannot use the method described the distributor in keeping records and collecting the tax. 

above to adjust gross sales for fuel use. In such cases, Such allowances are merely deductions from the gross

compute the adjusted figure as follows: To the gross sales amount of tax due the State and do not in any sense affect

volume described above, add the revenue remitted with the motor-fuel consumption. For this reason, these

motor carrier tax returns divided by the tax rate. From the deductions should not be entered as loss allowances in

result subtract the refunds and credits issued to motor item 2.a. They should be considered deductions from the

carriers divided by the tax rate. Enter the result in item 1. tax only, and the corresponding fuel volume should be

If using this method of adjustment, show the details in a included in the taxed volume reported in items 3. and 5.

note on page 2. The amounts of allowances for expenses, prompt tax

IFTA adjustments are required to be available at the end from gross tax collections on form FHWA-556,

of the second month after the reporting quarter. This item 1.a.(2).

makes monthly reporting impossible for IFTA data.

States should report the quarterly information on the In a few States, a percentage allowance is made in

monthly report for the second month after the reporting consideration of both losses in handling and expense of

quarter, e.g., IFTA data for January through March collection. Since losses in handling affect the distribution

should be reported on the May report. If obtaining IFTA of motor fuel and allowances for expenses do not, it is

figures will prevent timely data submissions, the figures necessary in the analysis of motor-fuel usage to divide the

should be provided on the next month's report. total allowance into two parts: one part representing the

See page 2-7 for a discussion of gallons of fuel sold for losses, such as through evaporation, destruction by fire,

highway (non-tribal government) use on Native explosion, and so forth; and the other part representing

American reservations. the estimated allowances for expenses.

The gross volume reported in line 1 is the sum of the

components to be listed in items 2. (fully tax exempt

volumes), 4. (fully refunded volumes), and 5. (net volume

taxed.) It is important to note that quantities that do not

represent actual consumption should not be reported. A

common example is a refund of an overpayment. This

should not be shown as a fuel-volume transaction. It is a

monetary transaction and the dollar amount should be

reported on FHWA-556.

Item 2.a. Losses— flat percentage.— Show the volume negative loss and shrinkage is a positive loss.

on which shrinkage or loss allowances were calculated or

claimed during the month. Some States make flatpercentage allowances for losses in handling. Others

make allowances for actual losses (generally, not to

exceed a certain percentage) such as losses through

evaporation, destruction by fire, explosion, and so forth,

or which permit a distributor to reconcile inventory.

A number of States provide allowances (discounts) for

payments, and so forth are to be recorded as deductions

estimated losses in handling and any applicable actual

Item 2.b. Losses— actual.— In many States, a distinction

is made between losses in storage and handling and

losses through evaporation, destruction by fire,

explosion, and so forth, and generally any provable losses

regardless of amount are tax exempt or eligible for

refund. Where the information is available, the exempt

portion should be reported here. Also, net gains or losses

(i.e., volume expansion or shrinkage) resulting from

temperature adjustments should be recorded here, with

the appropriate sign (+ or -). Note: Expansion is a

Items 2.c. to i. Other fully tax exempt.— Show only

motor-fuel volume on which no tax was paid in the first

instance. Amounts not representing motor fuel actually

consumed in the State, such as export sales and fuel

moving in interstate commerce, and amounts exempted

to avoid duplication of tax payments should be excluded
2-6

from item 1. (Gross Volume,) and, therefore, also from

item 2 (Fully Tax Exempt.) Motor-fuel tax refunds

should not be reported in this item.

All amounts completely exempted from taxation, other

than loss allowances and the types of exemptions stated

above, should be listed in items 2.c. to i. In many States,

Federal use is the only class of exemption reported. It

should be entered in item 2.c. Other common classes of

exemption include:

! State and local government use

! Nonhighway use by distributors

! Nonhighway use when sold in large quantities

! All nonhighway use

! Specific classes of nonhighway use, such as

farm, industrial, railway, and aviation use

Note that government use is included for gasoline and

excluded for diesel (except transit which is included in

diesel). To the extent possible, when government

exemption or refund categories are reported, separate

“Federal” from “State/Local.” Native American tribal

government should not be combined with “Federal” or

“State/Local,” but should be reported on a separate line.

Gallons of fuel sold for highway (non-tribal government)

use on Native American reservations should be included

on the FHWA-551M, since these are highway use gallons

taxed by the Federal Government and need to be included

to make attributions of Highway Trust Fund (HTF)

revenue to each State in which reservations are located. 

Gasoline and special fuel gallons sold on Native

American reservations should be included in gross

gallons. Tax-exempt gallons and tax-refunded gallons for

tribal member use should be reported for all fuel types

under Items 2 and 4 respectively. List separately as

“Native American use” to distinguish these gallons from

other exempt or refunded categories such as Federal

Government use. Payments to Native American tribes

under fuel tax collection or revenue sharing agreements,

in lieu of motor fuel tax refunds, should be identified

separately on the FHWA-556 under Item 8.

If there are sales on Native American reservations not

reported to the State in any manner that can be quantified,

add a note similar to the following in Notes and

Comments, page 2: “Motor fuel sales on certain Native

American reservations are not included.” Indicate the

number of retail locations involved, if known.

The above categories should be entered in items 2.d. to i. 

Always identify refund and exemption categories as

highway use fuel or non-highway use fuel, and do not

mix highway and non-highway uses in a miscellaneous

category. The highway and non-highway gallons are

treated differently in attributing State revenue to the

Federal Highway Trust Fund. Some States do not

maintain records in sufficient detail to provide a

statement of the amounts of motor fuel exempted from

taxation. In such cases, an estimate of the exemptions

(particularly Federal use) could be provided, including a

note on page 2 describing how the estimate is generated.

Such a description is only needed the first time the

estimate is reported.

When changes in tax law introduce a new exemption

category, please provide a brief narrative description

with the first report on which it appears. This

information allows FHWA to interpret the data properly

in its analyses. Once an exemption type has been

assigned a line number, it should be retained there for all

future submissions. Data, including line numbers, are

entered directly from form FHWA-551M, and consistent

coding makes it possible to track specific categories.

The total of items 2.a. to i. should be entered in item 2.j.

(Total.)

Item 3. Gross volume taxed.— Show the gross fuel

volume assessed for taxation. The amounts reported

should equal the gross volume reported in item 1. minus

the exempt volume reported in item 2.j. 

Item 4. Fully refunded.— In theory, at least, this item

should show for each month the volume of motor fuel

sold or distributed on which refunds of the tax were

subsequently granted. Such a listing would correlate

with the data reported in items 1. (Gross Volume

Reported) or 3. (Gross Volume Taxed,) which are based

on the distributors' reports of the distribution and sales

for the month. However, refunds are generally paid to

the purchaser, and very few States maintain a record of

refunds classified by month of fuel purchase.

In practice, most states report refunds and corresponding

fuel volumes (obtained by dividing the amount of money

by the refund tax rate) in the month in which refunds

were paid. Some States also maintain and report a

record of refunds certified in each month, as well as

refunds paid. Either approach is acceptable for form

FHWA-551M.

The following kinds of refund categories for all motor

fuels are typical:

! Private and commercial vs. public (government)

entity

! Within public use, Federal vs. State and local 
2-7

! Highway vs. nonhighway information allows FHWA to interpret the data properly

Within the private and commercial nonhighway gasoline number, it should be retained for all future submissions. 

category, the following classes are typical: Data, including line numbers, are entered directly from

! Agriculture possible to track specific categories.

! Aviation

! Industrial and commercial

! Construction

! Marine

These five categories are listed as items 4.a. to e. on

FHWA-551M. Refund classifications that do not fall into

these categories (e.g., transit, charitable institutions, etc.)

should be entered on the blank lines provided, 4.f.

through 4.s. When changes in tax law introduce a new

refund category, please provide a brief narrative

description with the first report on which it appears in

Notes and Comments on page 2. This information allows

FHWA to interpret the data properly in its analyses. Once

an refund type has been assigned a line number, it should

be retained for all future submissions. Data, including

line numbers, are entered directly from form

FHWA-551M, and consistent coding makes it possible to

track specific categories.

Item 4.t. is the total of items 4.a. to 4.s.

Item 5. Net volume taxed.— Record in this section the

fuel volume which was ultimately taxed, either at the

maximum rate or a lower rate.

Item 5.a. At full rate.— Enter the volume taxed at the full

prevailing highway-user tax rate after deducting full

exemptions, full refunds, and the volume effectively taxed

at less than the full rate (see below).

Items 5.b. to i. Taxed at initial lower rate, partially

exempt, partially refunded— Enter the fuel volume on

which the State ultimately retains some tax payments, but

less than the highest rate for the particular fuel type. This

includes classes taxed at an initially lower rate (aviation

is common), those granted a partial exemption (such as

transit), and those categories for which only part of the

initial tax payment is refundable (e.g., 4 cents of 7 cents

refunded for agricultural use equals an effective tax rate

of 3 cents). Enter each category of use, or user granted

special tax treatment, on a separate line. When changes

in tax law introduce a new category, please provide a

brief narrative description with the first report on which it

appears in Notes and Comments on page 2. This

in its analyses. Once a category has been assigned a line

form FHWA-551M, and consistent coding makes it

Item 5.j. Total.— This item is the total of items 5.a.

through i. and is also equal to item 3. less item 4.t.

Item 6. Source of data.— Enter the following: (a) the

name of the agency preparing the report and, (b) the

name of the person compiling the data.

Notes and Technical Information (page 2)

Instructions

Identifying Information.— Complete the upper righthand corner as on page 1.

Item 1. Rate of tax at end of month, in cents per gallon

or liter.— Complete this item on the January report and

whenever the fuel tax rates change. Give the basic

rate(s) of motor-fuel tax as of the last day in the month in

the blanks provided (1.a. to 1.j.). Please specify the

volume unit (gallon or liter) associated with the tax rate. 

Fuel types or special tax rates not covered in the first

eight blanks can be entered in 1.i. and 1.j. If the State

has a fuel tax levied as a percentage of price, rather than

on a cents-per-volume basis, enter the percentage in the

blank(s) and briefly explain the application basis (e.g.,

"3 percent of wholesale gasoline price excluding Federal

tax") in a note. Note the effective date of changes

reported.

Item 2. Computation of gross volume reported (page

1,) item 1.— Enter the information used to adjust gross

sales by wholesalers or retailers to reflect IFTA fuel

consumption in the State. Specify the month or months

covered by the IFTA fuel volume used to adjust the gross

sales.

Item 3. Stratification of gasohol by blend ratio.—

Indicate the stratification of the gasohol volume reported

in item 1. on page 1 into the three categories shown. 

Enter actual or estimated volumes (gallons or liters) or

percentage shares.

INSTRUCTIONS FOR FORM FHWA-556

Form FHWA-556 is designed to record the actual

collections of the State motor-fuel tax during a calendar

or State fiscal year and to record other receipts incidental

to the administration of this tax. It also shows, by major

items, the distribution of tax receipts. Form FHWA-556
2-8

serves as a measurement of the flow of funds from Since motor fuel tax receipts, including IFTA revenues

collecting agency to expending agency. Receipts should received from other States, are volume-tax receipts, they

be segregated to show revenues derived from gasoline should be included with other volume-tax receipts in item

(including gasohol and neat alcohol) (page 1, 1.a.(1) or 1.a.(3), of columns (A) and (B) for gasoline

column (A)) and from other motor fuels (page 1, and special fuels respectively. The amounts refunded or

column (B)) separately. Total receipts and refunds credited to interstate motor carriers, or IFTA receipts

should reconcile closely to the fuel volume reported on sent to other States, should be reported in item 1.a.(4) of

FHWA-551M with proper allowance for lag between columns (A) and (B) with other volume-tax refunds. 

amounts due and paid. If they do not, a reconciliation Consequently, the net collections of motor-carrier road

should accompany FHWA-556. taxes, whether positive or negative, will be reflected in

Form FHWA-556 report should be compiled from revenues have been included in the items discussed in

records of the State motor-fuel tax collecting agency and this paragraph.

other agencies responsible for the collection and

distribution of the funds. However, if the only action In order for the FHWA to be able to reconcile the

taken by the collecting agency is to turn the receipts over receipts reported on form FHWA-556 and the fuel

to the State treasurer, who distributes the money to the volume reported on form FHWA-551M, the following

agencies that expend it, then it is preferable that form information should be footnoted by fuel type on page 2 of

FHWA-556 be prepared from records of the State form FHWA-556:

treasurer, auditor, or comptroller, depending on which of

these officers maintains the authoritative record of the ! Reported IFTA fuel tax receipts— the funds

distribution of the funds concerned. remitted with the fuel tax returns under IFTA.

Page 1 of the form provides for an accounting of the ! Refunds or credits of fuel tax under IFTA.

receipt and distribution of funds. Separate columns are

provided to record column (A) gasoline, gasohol, and ! Net IFTA fuel tax receipts (may be either

neat alcohol taxes, column (B) diesel and other special- positive or negative)

fuel taxes, and column (C) other receipts. All entries

should be rounded to whole dollars. Page 2 of the form

contains space for entering the State name, the year, notes

and comments, a reconciliation with form FHWA-551M

if needed, and a reference to identify the source of the

records. In the following instructions, all items are

numbered to correspond to the appropriate items on form

FHWA-556.

Item 1. Receipts for year.— Enter the total collections

from motor-fuel taxes and other fees and taxes incidental

to motor-fuel tax administration as described below:

Item 1.a. Volume tax collections.— Report the collections

from fuel-volume taxes— taxes imposed per gallon or

liter of fuel. There is usually a lag of 1 or 2 months

between the use of the gasoline, as reported on

form FHWA-551M, and the payment of the tax to the

State. However, since the lag in any given year is very

similar to the preceding year's pattern, collections should

be reported in the year received.

Collections from the taxation of motor fuel used by

interstate motor carriers, often referred to as motorcarrier road taxes or fuel use taxes, should be reported on

form FHWA-556 and not on form FHWA-571. (Form

FHWA-571, described in Chapter 5 of this Guide, is

designed to record other taxes and fees on motor carriers

that do not fall under the motor-fuel tax laws.)

item 1.a.(5), net receipts. Please note on page 2 if IFTA

Item 1.a.(1) Gross collections by distributors.— Record

the gross amount collected under the volume tax on

motor fuel prior to deduction of allowances granted to

distributors for collection expenses. Show total gasoline,

neat alcohol, and gasohol tax receipts in column (A) and

tax receipts from other motor fuels, including diesel,

propane, butane, and other special fuels, in column (B).

Item 1.a.(2) Less: distributor allowance for collection

expense.— Record the total amount of the cash

allowances made during the year to distributors (or

deducted by them) in consideration of prompt payment,

the costs of collecting the tax and preparing reports, and

so forth. Do not include loss allowances either here or in

item 1.a.(1).

Item 1.a.(3) Gross receipts by State.— Record the gross

amount actually received by the State from the volume

tax during the year. In States that make no allowances

for distributors' collection expenses, items 1.a.(1) and

1.a.(3) should be identical.

Item 1.a.(4) Less: refunds and credits.— Actual refunds

and credits of the motor-fuel tax issued during the year

should be entered here.

Item 1.a.(5) Net receipts.— Record the net receipts of the

volume tax remaining for distribution after payment of

refunds.
2-9

Item 1.b. All other receipts under motor-fuel tax

laws.— Record the receipts from sources other than the

volume tax. These receipts are collected as incidental to

the administration of the motor-fuel tax laws or the

inspection of motor fuel. 

Item 1.b.(1) Distributor and dealer licenses.— Enter the

amount collected from motor-fuel distributor licenses and

from special dealer licenses, pump inspection fees, and

other direct taxes or fees imposed on sellers of motorfuel. Receipts from general retail licenses or chain store

taxes, which are levied on all types of business, are not

regarded as special taxes on motor fuel and should not be and Fees, How They Are Collected and Distributed for

included on the report. examples and Chapter 8 of this Guide for instructions.)

Item 1.b.(2) Motor-fuel inspection fees.— Show the

amount of fees collected for the inspection of motor fuel. 

In some States, these fees are imposed merely to defray

the cost of inspection; in others, they are a source of

considerable revenue. It is desirable to exclude from the

report, insofar as possible, all fees charged for the

inspection of petroleum products other than motor fuels

and also to exclude inspection fees paid on motor fuel

used for nonhighway purposes, such as agriculture,

aviation, and so forth.

If the receipts from inspection fees on petroleum products

are not segregated according to products inspected or

their use, the amount received from the inspection of

motor fuel may be estimated on the basis of data reported

on form FHWA-551M or form FHWA-556. The amount

thus estimated should be entered in item 1.b.(2). If

estimates are made as outlined above, the entry in item

1.b.(2) should be supported by a note or supplementary

statement giving the total receipts from inspection fees

and setting forth the computation by means of which the

entry in item 1.b.(2) was estimated.

Item 1.b.(3) Fines, penalties, and interest.— Report the

amount of fines and penalties collected in connection

with the administration of the motor-fuel tax and

inspection laws. Also include interest on delinquent Item 1.c. Net total receipts.— Record total receipts for

collections. the year for each column.

Item 1.b.(4) Motor-carrier fuel tax registration Item 2. Nonhighway dedications of volume tax from

(decals).— Report the income from the fuel tax nonhighway gasoline.— Show the proceeds from the

registration decal fees required of motor carriers. States

generally require motor carriers to display proof of fueltax registration in the form of a decal. Include the fees

for decals issued under IFTA and any other base-State

fuel tax agreement.

Items 1.b.(5) Alternative fuel tax decals (in lieu of

volume tax). — Many States provide for the issuance of gasoline to an airport improvement fund. To be included

decals or other markers to vehicles that burn alternative

fuels, such as liquefied petroleum gases, liquefied natural

gas, and compressed natural gas. The fees collected are

in lieu of the collection of fuel tax on the fuel the vehicle

consumes. Enter the income from such decals.

Items 1.b.(6)-(9).— Space is provided here for other

receipts that do not fall under the first five classifications

of item 1.b. The nature of any entries in these four lines

should be described in the space provided or in notes on

page 2 of the form. State sales tax applied to motor-fuel

purchases should be reported in item B.4. on form 

FHWA-531. (See FHWA table S-106 in Highway Taxes

Assessments are an example of receipts that may be

reported in these lines. Assessments are taxes which the

State determines, through audits or reviews of taxpayer

returns, that the taxpayer owes and did not previously

report and pay. Assessments should be reported for the

year that payment was received, regardless of the year or

years for which the assessments were made. If

assessments are subsequently reduced or canceled,

adjustments should be reported for the year in which the

adjustments are made. The revenue represented by

assessments should be reported on form FHWA-556, and

identified a note on form FHWA-551M, page 2. Some

States cannot separate assessments from other motor fuel

receipts and therefore should report assessments in

item 1.a.3., Gross Receipts by State.

Some States have imposed special environmental taxes

for leaking underground storage tanks or spill cleanup. 

These should not be reported on form FHWA-556 unless

(1) the imposition is exclusively on motor fuels or (2) the

rate for motor fuels differs from that imposed for any

other petroleum products (heating fuel, jet fuel, etc.).

Items 1.b.(10).— Enter the total of items 1.b.(1) through

1.b.(9).

taxes on nonhighway uses of gasoline (only) that were

dedicated for the improvement and/or operation of

nonhighway facilities or for related activities. A typical

example is the dedication of the receipts (known or estimated) from motorboat use of gasoline to construction

and maintenance of boating facilities such as ramps and

docks. Some States dedicate the revenue from aviation

in item 2., the funds must be both (1) from the taxation of
2-10

gasoline used for nonhighway purposes and (2) dedicated Item 6. Balance undistributed at end of previous

for nonhighway purposes.

Item 3. Adjusted total receipts.— Subtract item 2.e. from should be recorded in item 6. If the amount differs from

1.c. and enter it here. that reported as undistributed at the end of the previous

Item 4. Deductions by State collecting agency.— Record

the amounts retained or deducted by the collecting agency

prior to depositing the net collections in the State treasury

or otherwise disposing of them. The amount deducted

may represent either actual amounts expended, or a flat

percentage of collections.

In some cases, the total collections are deposited to the Item 7. Total funds available for distribution.— Enter

credit of the State highway agency fund, and expenses of the sum of items 6. and 7.

the collecting agency are paid or appropriated from the

fund. In such cases, no entry need be made in item 4.,

and the entire distribution should be shown in item 8. 

Collection expenses paid by State highway agencies

should be deducted on form FHWA-531, item B.1.b.,

rather than on this form.

If collecting agency expenses are funded by another

revenue source not reported in item 1., then that revenue

source should be identified in a note, along with the

actual expenditures of the collecting agency.

Item 4.a. Expense of collecting and administering

volume taxes.— Self-explanatory.

Item 4.b. Expense of inspecting motor fuel.— The cost receipts from inspection fees to exclude receipts from

of inspection may be interpreted to include the cost of petroleum products other than motor fuel and receipts

administering the fuel inspection laws as well as the from motor fuel used for nonhighway purposes should be

actual inspection and testing. In States where the cost of carried through to the data on distribution of these

motor-fuel inspection is not kept separately from the cost revenues.

of inspecting kerosene and other petroleum products, the

cost may be prorated on the same basis as the receipts

from inspection fees and only the motor fuel portion

reported on the form. In States that grant refunds for

nonhighway uses, it will be possible to compute, on a pro

rata basis, the cost of inspecting motor fuel used for

highway purposes. This reduced amount should be

entered in item 4.b. When such computations are made,

the details should be given in notes on the form or on an

attached schedule.

Item 4.c.— Record other costs or deductions by the

collecting agency, such as those in connection with the

miscellaneous receipts in items 1.b.

Item 4.d. Total.— Add all the deductions recorded in

item 4.

Item 5. Net proceeds available for distribution.—

Record net receipts after deducting item 4.d. from

item 1.c.

year.— Any balances in the hands of the State collecting

agency, or to its credit, at the beginning of the year

year, a note should explain the adjustment. If form

FHWA-556 is prepared from the records of the State

treasurer, auditor, or comptroller, the balance may be the

amount on hand in a revolving fund; in some cases, this

fund balance may need to be combined with any amounts

in the hands of the collecting agency to account for the

total amount of undistributed funds.

Item 8. Amounts distributed.— The allocation of motorfuel revenues to the expending agencies or funds should

be shown in item 8. In general, the distribution should be

consistent with the provisions of table MF-106 in

Highway Taxes and Fees, How They Are Collected and

Distributed, or current statutes where they differ from

those in table MF-106. In the event motor-fuel revenues,

together with other road-user taxes, are placed in an

intermediate clearing fund, such as a highway-users tax

distribution fund, a balanced statement of the clearing

fund should accompany form FHWA-556.

In several States, net income from inspection fees is

credited to the State general fund. The prorating of

Items 8.a.-8.j.— Use these lines as necessary to record

the distribution of motor-fuel tax revenues as provided

under State law— for example, funds allocated to

counties or cities for roads, county general funds,

schools, State general funds, and the State highway

agency or department of transportation. (These

distributions appear in table MF-106.) Amounts reported

should be consistent with comparable amounts reported

on forms FHWA-531 and FHWA-536.

Item 8.k. Total.— Add all the amounts distributed in

item 8. 

Item 9. Balance undistributed at end of year.— Enter

the amounts remaining after deducting item 8.k. from

item 7.
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CHAPTER 3

REPORT IDENTIFYING MOTOR-VEHICLE REGISTRATIONS AND TAXATION

This chapter details the procedures for completing form Section I. Registration of Motor Vehicles,

FHWA-561, Report Identifying Motor-Vehicle

Registration and Taxation. This form has been

developed to report motor-vehicle ownership and

registration features, including all fees and charges

(except motor-fuel tax) associated with vehicles and their

operation.

States may prepare form FHWA-561 on either a calendar

year or State fiscal year basis. The selected 12-month

reporting period must be indicated on page 1 of form

FHWA-561. (See Chapter 1 for more information on

report period options.)

The FHWA collects motor vehicle registration

information from the States and disseminates that

information to the public. Registration information is

used by regulators and analysts at both the national and

State levels to perform such tasks as forecasting tax

revenue, highway deterioration, fuel consumption, and

motor vehicle emissions. The raw data used to address

these tasks and produce the tables published in Highway

Statistics come mainly from the States. Thus it is critical

that the registration information that FHWA receives and

publishes is accurate, comprehensive and timely. FHWA

also uses other sources of information on the vehicle

fleets such as the Truck Inventory and Use Survey

(TIUS), which is conducted by the Bureau of the Census

every five years.

A microcomputer template using Lotus 1-2-3 is available

for form FHWA-561. States are encouraged to use the

microcomputer template. See Appendix B for

information about the template and options for electronic

transmission of data to FHWA.

INSTRUCTIONS FOR FORM FHWA-561

Form FHWA-561 is designed to record the total number

of motor vehicles registered during a year, classified by

types of vehicles, kinds of use, and the corresponding

payments of registration fees, together with

miscellaneous receipts connected with motor-vehicle

registration and operation. Federally owned vehicles

should be excluded from all entries on form FHWA-561. 

Trailers, etc., Classified by Type of Vehicle

The registrations recorded in section I should not include

animal-drawn vehicles, streetcars, trolley buses, or such

vehicles as agricultural tractors or road machinery not

designed or licensed for highway transportation. All

other vehicles, registered for use on the highways, 

whether operated privately or for hire, should be reported

by vehicle type in section I.

Section I is designed to facilitate the recording of the net

number of licenses sold or issued for individual vehicles

of each type or class. It is recognized that the

classification of registered vehicles called for in section I

does not coincide with the registration classes in effect in

some States. However, the States are urged to make an

effort to fit the vehicles into these classes if at all

possible. It is most important for national summaries and

studies to have consistency and comparability among the

States. The proper identification of light trucks and truck

tractors is especially critical to studies of the highway

costs occasioned by different vehicle types and their

corresponding contributions to highway revenues. The

number of truck tractor-trailer combinations is crucial

because these are the heaviest vehicles, cause the most

pavement damage and require design and structural

features not needed for other classes. The light trucks,

which have weights and operating features closer to

automobiles, tend to bias study results when included

with heavier trucks.

Whenever a space opposite a given type of vehicle is left

blank, a note should explain where the missing entry is

included— for example, "Included with personal

passenger vehicles," "Included with light trucks," and so

forth.

The following discussion includes some major

considerations for determining types of vehicles and for

supplying the information called for in section I.

Item I.A.1. Automobiles.— Record all sedans and station

wagons, including taxicabs, rentals, ambulances and

hearses.

Item I.B.1. Commercial buses.— Record here all buses

used in intercity, charter and local transit operations.
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Item I.B.2. School and other.— Record here school and Item I.C.5. Motorhomes.— Self-propelled vehicles

other nonrevenue buses (e.g., buses owned by churches equipped as living quarters, if they can be identified as a

and social groups). This classification does not include distinct vehicle type, should be entered here. Do not

buses operated by commercial carriers in transportation include house trailers which should be reported in

of school children that should be included in item I.B.1. item I.E.1.(c).

Item I.C.1. Light trucks.— All single-unit trucks of Item I.E.1. Trailers and semitrailers.— A trailer (full

4,500 kilograms (10,000 pounds) or less GVW other trailer) is a vehicle without motive power that is designed

than those classified as farm trucks should be reported for carrying property or passengers wholly on its own

here. This class will include all pickups, panels, freight structure and must be drawn by a motor vehicle. A

vans, and most two-axle, four-tire delivery vehicles. semitrailer is used in conjunction with a motor vehicle so

Indicate by footnote whether vans or sport-utility type that some significant part of its weight and load rests

vehicles are included with automobiles or with light upon or is carried by the other vehicle. Numbers of

trucks. Trucks that cannot be classified into one of the trailers and semitrailers including extra trailer units

above categories are to be classified as other light should be entered opposite the appropriate sidehead

vehicles. “Other” include a small number of large under item I.E.1.

trucks, car-based pickups, unknown truck types and

trucks older than 15 model years. If the State cannot

give the break at 4,500 kilograms (10,000 pounds), the

closest verifiable approximation to it or an estimate

should be given. When a weight break other than

4,500 kilograms (10,000 pounds) or an estimate is

given, it should be indicated in a separate note. If no

entry is given, the FHWA will estimate.

Item I.C.2. Heavy single-unit trucks.— All single-unit

trucks exceeding 4,500 kilograms (10,000 pounds)

GVW other than those classified as farm trucks should

be recorded here.

Item I.C.3. Farm trucks.— States having a special

registration class for farm trucks should report them

here. Space is provided for truck tractors if registered as 

farm vehicles and if the number is readily available.

Item I.C.4. Truck tractors (other than farm).— Enter the

number of truck tractors registered other than those The information tabulated in columns (1) through (4)

classified as farm trucks. Truck tractors are defined as should be based on the registration procedure in the

motor vehicles designed primarily for pulling truck individual State. Columns (2), (3), and (4) should be

trailers and semitrailers and constructed to carry part of deducted from the total transactions in column (1). 

the weight and load of a semitrailer. Truck tractors However, in some States, the deductions from gross

registered as farm vehicles should be entered in registrations indicated by columns (2) and (3) are not

item I.C.3.(b). applicable. The number of transfer tags or reIn some States, truck tractor-semitrailer and/or truck- deducted from gross registrations (column (1)) unless

trailer combinations, although segregated as a class from failure to do so would result in a duplication or

single-unit trucks, are registered as a single entity. In overstatement of registrations. Similarly, the number of

reporting such combinations, enter the number of these nonresident registrations (column (3)) should not be

units in the appropriate category under item I.C., deducted unless they represent temporary or limited

Trucks, and also item I.E.1.(a) or I.E.1.(b), Commercial permits that are not bona fide registrations. Regular

trailers or semitrailers, as applicable. The exact registrations by nonresidents are not a deductible item. 

situation regarding the registration of these combination The objective is that columns (4) and (5) should give the

vehicles should be explained in a note. net total number of registrations issued, subdivided as

Item I.E.2. Motorcycles.— This item includes twowheeled and three-wheeled motorcycles. Sidecars are not

regarded as separate vehicles— a motorcycle and sidecar

are reported as a single unit.

Item I.E.3. Motor bicycles and scooters.— Mopeds

should be included with motor-driven cycles (motor

bicycles) in the States that require their registration.

Item I.E.4. Miscellaneous motorized equipment.— This

class includes cranes, snowmobiles and any other

equipment registered for highway use, that does not

readily fit into one of the regular vehicle types. Special

equipment, such as repair vehicles, fire trucks and tow

trucks should be classed with trucks. The type of

vehicles shown in this category should be identified by a

footnote. If fees are collected for these vehicles, they

should be reported under this category in section II.

registrations reported (column (2)) should not be

indicated between those for publicly owned vehicles and

those for privately owned vehicles.
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The instructions below should be followed to obtain the In this section, enter the receipts, classified by type of

net figure in column (5). vehicle, from fees charged for the registration of vehicles. 

Column (1) Total license tags sold or issued.— Record

the total number of sets of license tags issued or sold.

Column (2) Transfer tags or reregistrations.— Record

additional registrations caused by transfers. If no extra

registrations are involved, the number of transfers may

be tabulated with a note to the effect that the entries are

not deductible; such a note is important, since

column (2) ordinarily will be deducted from column (1).

Column (3) Nonresident tags.— Enter any registrations

issued for nonresident vehicles. Include in this number,

as a deductible item, any nonresident vehicles that are

being counted in their home States.

Column (4) Official vehicles, State, county and

municipal.— Enter the total number of vehicles owned

by State, county, and municipal governments, so far as

the State records make such a tabulation possible. If

only State-owned vehicles are included, or if any

considerable group of publicly owned vehicles is

omitted, the fact should be stated in a note. Segregation

of publicly owned vehicles, by type, is very useful, and

every effort should be made to provide this distribution

each year.

In some States, license tags are issued, under certain

circumstances, to private individuals or corporations

without charge. Such free registrations should be

included in the tabulation in column (5). The number of

free registrations issued for privately owned vehicles of

each type should be given in a note.

Column (6) Active Registrations.— Record the number

of active registrations. Specifically, the data reported in

column (1) is based on transactions (registrations) in a

given year and is therefore not necessarily an estimate of

all registered vehicles “in use” at a particular time. The

problem of providing an estimate of the total number of

registered vehicles based on a single year of issuances is

particularly troublesome in States that use multi-year

registration. The data recorded in column (6) will

provide this vehicle total.

Item G. Diesel and alternative fuel vehicles.— Vehicles

using other than gasoline should be reported as past of

the appropriate group in Items A through E, above, and

also reported by fuel type.

Section II. Registration Fees Paid by Motor

Vehicles, Trailers, etc., Classified by Type of

Vehicle

Omit cents.

The vehicle classification scheme used in section II is the

same as that used in section I. This permits a direct

correspondence (for example, between column (5) in

section I and column (5) in section II) between numbers

of licenses issued for each type of vehicle and the fees

derived from them. The decisions made regarding

vehicle type segregation in section II should follow the

same reasoning used in section I. For example, sidecars

are not regarded as separate vehicles and are included

with motorcycles in section I (item I.E.2.); thus, in

section II, sidecar fees are included with motorcycle

registration fees (item II.E.2.).

The receipts reported in section II should be the actual

collections during the report year of fees for vehicles

registered during the year. Do not include: 

(1) registration fees assessed but not collected during the

report year or (2) back collections of fees charged for the

registrations in prior years.

Do not report refunds paid during the year of excess fees

charged on registrations of the year; deduct these refunds

before tabulation of section II. If State records do not

provide a segregation of current year refunds by type of

vehicle, the total amount of the refunds may be entered as

a deduction in one of the blank spaces of item III.G.

(miscellaneous receipts).

Refunds on payments in prior years should not be

deducted in section II. Collections and refunds related to

prior years should be shown in item III.G.

In some States, registration fees are collected by county

or local officers who make a deduction (usually a fixed

amount per registration issued) for collection expenses. 

The amounts tabulated in section II should be the total

registration fees collected and should include the actual

amounts deducted by county or local collecting officers if

these deductions are of record in the State motor-vehicle

department. Those States where the amounts of such

service charges are not of record, the State motor-vehicle

department should provide either an estimate for each

type of vehicle or the information from which an

estimate can be developed by the FHWA. If estimated

rather than of record, service charges should be given in

a note to section II or in a schedule attached to form

FHWA-561.

To prevent duplication, do not report any portion of the

registration fees collected for another State or jurisdiction

under a proration agreement such as the International
3-4

Registration Plan (IRP) on any FHWA form. Show only Section III. Receipts Other than Regular

the portion retained by the State in this section. The

portion of State registration fees collected by, and

received from, other States under a proration agreement

should be entered on form FHWA-571.

The instructions below should be followed for the

entries in columns (1) through (5) of section II.

Column (1) Gross collections including transfer or

reregistration fees.— Enter the gross registration

receipts (which should equal the sum of columns (2)

through (5)).

Column (2) Transfer or reregistration fees.— Enter

transfer or reregistration fees.

Column (3) Nonresident tag fees.— Show the receipts

from the sale of temporary or limited registrations of

nonresident vehicles.

Column (4) Fees for official vehicles, State, county,

and municipal.— Enter the receipts from the fees, if any,

charged for the registration of publicly owned vehicles. 

Do not include Federally owned vehicles.

Column (5) Net regular registration fees collected.—

To show the net regular registration fees collected for

private and commercial vehicles of each type, enter the

amount remaining after deducting the total of

columns (2), (3), and (4) from the amount entered in

column (1).

If the data available cannot be tabulated exactly in the

form indicated, the method may be adapted to the

individual case while placing the greatest emphasis on

the entries in column (5).

Additional fees (commonly called "excess weight fees")

charged when registration tags are transferred to a

heavier vehicle should be included with the net regular

registration fees in column (5) and not with transfer fees.

In some States, special taxes are imposed on State-based

for-hire carriers in lieu of registration fees. In such

cases, the special taxes paid in lieu of registration fees

should be regarded as registration fees and included,

with an explanatory note, in the amounts entered in

columns (1) and (5) of section II. Otherwise, special

taxes paid by motor carriers should be reported on

form FHWA-571 instead of on form FHWA-561. The

regular registration fees paid by motor carriers should,

in all cases, be included under the proper vehicle types

in section II of form FHWA-561.

Registration Fees

In this section, enter all receipts of the motor-vehicle

department other than the regular registration fees dealt

with in section II. Omit cents.

Exceptions.— The following types of receipts are

exceptions to the general requirement that all receipts of

the motor-vehicle department should be included in

sections II and III:

! Receipts not related to motor-vehicle

ownership or operation.— If the department

that handles motor-vehicle registrations collects

fees or taxes not related in any way to the

ownership and operation of motor vehicles,

such receipts should be omitted from

form FHWA-561.

! Agricultural tractors and other vehicles.—

Receipts from the licensing of agricultural

tractors, motorized equipment not used on the

highways, and animal-drawn vehicles should be

omitted from form FHWA-561.

! Special taxes imposed on motor carriers.— The

collection of special taxes imposed, in addition

to registration fees, on vehicles operated for hire

and other special classes of commercial carriers

is frequently a function of the State public

service commission or similar body. In some

States, however, the motor-vehicle department

collects these taxes. The classes of special

taxes referred to are gross receipts taxes;

distance, weight-distance, or passenger-distance

taxes; special license fees or weight taxes;

franchise or permit fees; and fees for certificates

of convenience or necessity. As the receipts

from these types of taxation are to be entered on

form FHWA-571, ordinarily they should not be

entered on form FHWA-561, even though they

are a part of the receipts of the motor-vehicle

department. The one exception is when such

taxes are imposed in lieu of registration fees on

State-based vehicles and, thus, are regarded as

registration fees and reported in section II of

form FHWA-561.

In some States, certain items of motor-vehicle revenue,

such as driver-license fees, highway patrol fines, and fees

for periodic inspection of motor vehicles, are collected by

the State highway department (in which case they will be

reported as motor-vehicle revenue on form FHWA-531)

or by some other agency independent of the motor-
3-5

vehicle department. All such receipts, however, should

be reported on form FHWA-561 or form FHWA-562, as

appropriate, or on a schedule attached thereto,

regardless of which agency collects them.

Some States have enacted special taxes to be paid at the

time of purchase, first registration, or titling of a motor

vehicle. As such taxes are usually imposed in

connection with a general State sales tax, there may be

some question whether a given excise tax of this

character is a special impost upon the motor-vehicle

user or merely a part of a general State tax. The

following discussion should be used as a guide in

determining whether the receipts from such an impost

should be reported on form FHWA-561.

If there is a general sales tax that applies to the purchase

of motor vehicles as well as all other commodities (or to

commodities in general with stated exceptions, such as

food), the receipts from the tax as applied to motor

vehicles should not be reported on form FHWA-561.

If, however, the excise tax was imposed under a separate

act and the law states or implies that the tax is to be paid

as a compensation for the use of the highways, it is to be

considered as a special tax on the motor-vehicle user. 

Also, if the tax is imposed on motor vehicles alone, it is

to be considered as a user tax, even though the

consideration is not stated or implied in the law. If,

judged by these considerations, the impost is found to be

a highway-user tax, the proceeds therefrom should be

reported as miscellaneous receipts in item III.G. on form

FHWA-561.

In case of doubt as to whether the receipts from a given

tax on motor vehicles should be reported on form

FHWA-561 or regarded as part of a general State tax

and thus omitted from form FHWA-561, the matter

should be taken up by correspondence with the FHWA.

The instructions below should be followed for the

entries in the specific items in section III.

Item III.A. Dealers' licenses or permits.— Report

special dealers' or garage licenses issued by the agencies

regulating or licensing motor vehicles, inspection,

repair, and so forth. Do not include regular licenses that

are required of all businesses. Include all dealers' license

plates whether "original" or "extra" plates, as well as

motorcycle plates.

Item III.B. Certificates of title.— Enter the number of

certificates of title (called certificates of ownership in

some States) issued and the amount of collections.

Item III.C. Fines and penalties.— Enter here all receipts

of the motor-vehicle department (or other State agencies)

from fines and penalties imposed for infractions of

motor-vehicle laws and regulations, including oversize

and overweight penalties. (Excess weight fees, however,

should not be reported in item III.C., but should be

included in column (5) of section II.)

The State's receipts from fines and penalties imposed for

infractions of traffic laws, i.e., moving violations and

parking violations, should not be shown in this report.

Item III.D. Transfer or reregistration fees.— Enter the

amount of these fees that were shown as deductions in

column (2), section II.

Item III.E. Estimated service charges, local

collections.— The instructions for section II state that

deductions by local collecting officers of a part of the

registration fee for collection expenses should be

included in the receipts from regular registration fees

reported in section II. Item III.E. should be restricted to

those service charges by local officials that are in

addition to the regular registration fees. For example, the

State registration fee may be $10.00, but the local

collection officer is permitted to charge $10.50 and to

retain $0.50 as a service charge. These charges, and

similar ones levied for titles or other transactions, should

be shown in item III.E. and explained fully in notes.

Item III.F. Caravan fees.— Enter special in-transit fees,

towing fees, auto transporter fees, and so forth.

Item III.G. Miscellaneous receipts.— This item provides

for adding back into FHWA-561 (in items III.G.1. and

III.G.3.) the receipts deducted in columns (3) and (4) of

section II. Item III.G.2. provides for any receipts related

to temporary entry permits that were not accounted for in

column (3) of section II. In item III.G.4., enter all

receipts derived from the issuance of duplicates of all

kinds (tags, registration cards, and so forth). In item

III.G.5., enter receipts derived from vehicle inspection

fees. In item III.G.6., enter receipts from additional fees

charged for personalized (vanity) license plates; the

regular registration fees should be shown in section II. In

item III.G.7., show the receipts for oversize and/or

overweight permits permitting use of large vehicles,

generally for a limited time. This item should not be

confused with the excess weight fees that are described

above under section II and included with the net regular

registration fees in column (5) of section II. In item

III.G.8., enter receipts for title liens. In item III.G.9. enter

special titling taxes and do not include special titling

taxes that are included under general sales tax levies. In
3-6

item III.G.10., report all adjustments such as

unclassified refunds (deductions).

Items III.G.11. through III.G.12. provide for other

miscellaneous receipts of the motor-vehicle department

or other agencies involved that do not fit the categories

above. As noted in the instructions under section II, this

is also the proper place to record collections and refunds

related to prior years. Very small items need not be

detailed, but any item in excess of $10,000 should be

reported separately. If the space provided is not

sufficient, the complete classification of miscellaneous

receipts may be given in a note or a supplemental

statement.

Note that the section IV grand total should agree or be

reconciled to the amount reported in item I.A.,

column (A), FHWA-566.

SUPPLEMENTAL INFORMATION

To assist the FHWA in interpreting the data on form

FHWA-566, the States should provide supplemental

schedules (such as balanced statements of the motorvehicle inspection fund or highway patrol fund) with

form FHWA-561 where appropriate. Also any new

motor-vehicle registration forms and sample title forms

should be sent when they become available.

 
4-1

CHAPTER 4

REPORT IDENTIFYING STATE DRIVER LICENSES AND FEES

This chapter outlines procedures for completing form license and, therefore, should not be counted in the “unFHWA-562, State Driver Licenses and Fees. This form der 16" category.

is designed to record, on an annual basis, the total number of drivers licensed during a year, classified by kinds Section II. Driver licenses issued

of permits or licenses issued, term of licenses, renewal

dates, and fees collected. The number of licensed drivers,

classified by age and sex, is also reported. The FHWA

uses this information to develop its DL series of national Item A only requires the breakout of learner permits that

tables on driver licenses. The National Highway Traffic are commercial or non-commercial. 

Safety Administration also uses these data for safety

analyses.

A microcomputer template using Lotus 1-2-3 is available

for form FHWA-562. States are encouraged to use the

microcomputer template. See Appendix B for information about the template and options for electronic transmission of data to FHWA.

INSTRUCTIONS FOR FORM FHWA-562

In the following instructions, those aspects of the procedures that may not be self-explanatory are emphasized.

Calendar/fiscal year. The data on driver licenses are

reported on a calendar year basis for all States when

possible. If calendar year reporting is causing a hardship

on the reporting agency, it may substitute fiscal year

reporting and so note on the form.

Section I. Net Number of Licensed Drivers

Annual Information--This section should contain the net

number of driver licenses in force at the end of the reporting year stratified by age and sex. The entries should

exclude: learner permits; licenses issued solely for the

operation of motorcycles, scooters, or mopeds; limiteduse permits (most juvenile, hardship, and DWI permits);

nondriver identification cards; and any license in a suspended status as of the end of the reporting year. Licenses

cancelled due to emigration, death, or revocation should

also be excluded. 

Beginning with the 1989 data, a strict standard was

adopted to determine how many persons under the age of

16 actually held an unrestricted license. The definition

for an “unrestricted driver” is: “A person that can drive

inclusively between the hours of 5:00 AM and 12 midnight without another licensed driver in the vehicle.” If a

license holder cannot drive any portion of these hours,

he/she does not qualify as a holder of an unrestricted

Annual Information--

Item B requires all classes of licenses to be listed including bus, motorcycle, and scooter driver licenses. A few

of the more common class breakouts have been provided

for your convenience. The separation of renewals and

new licenses has also been listed to help those that have a

different pay scale for new licenses versus renewals. 

These breakouts are only there as a guide because they

are the most common classes; if your State has different

classes, they may be added below the regular listing. The

Commercial Driver License (CDL) group is as described

in the Federal Motor Carrier Safety Regulations, Subpart

F, Section 383.91. Non-CDL license groups vary by the

individual State’s or Commonwealths administrative

practice as defined by law. The wide variety of license

types can be reviewed in the biennial FHWA report

“Driver License Administration Requirements and

Fees.”

COMMERCIAL DRIVER LICENSE: The Commercial Motor Vehicle Safety Act of 1986 establishes minimum standard requirements and requires a single Stateissued license for operators of commercial motor vehicles. As the regulations are implemented and any necessary changes are made in a State's classification scheme,

the license classes reported in this section will change. 

If a class includes both commercial and noncommercial

licenses, specify the number of commercial licenses

included in a note. If fees are charged for commercial

license examinations, show the number of tests administered, the fees charged, and the resulting revenue under

Item G.

Item D (Duplicates) is a single entry for all duplicates.

Item E (Endorsements) is a single entry for all

endorsements.

Item F (Non-driver Identification Cards) is for nondriver identification cards only.
4-2

Item G (Miscellaneous) is a breakout of miscellaneous

fees associated with driver licensing in general. This is

only a small portion of the types of breakouts that may or

may not be pertinent to your State. You may add any

different breakouts or you may combine all the miscellaneous fees into the miscellaneous line item.

The following is a list of general terms or column headings and definitions: 

Term for which issued. Enter the time length of each

class or kind of license issued. If the State has optional

terms, show the optional terms and the number of licenses issued for each on separate lines.

Renewal date. Enter the renewal date (such as birthday

or issuance) for each class or kind of license.

Number of licenses issued during year. Record the total

number of licenses issued during the reporting year,

classified by kinds issued (as listed in Item B). This

includes all types of licenses and permits, including restricted, DWI, and hardship permits. Non-driver

identification cards (if issued by the licensing agency)

should be shown in Item F on the form.

Fee per issue. Show the fee per license. If there is a

local service charge or agent's fee in addition to the basic

issuance fee, it should be shown in item G and explained

in a "Notes and Comments" space. Learner or beginner

permit fees should be shown separately when there is a

separate charge. Where part of the learner permit fee is

applied to the driver license fee, show that amount with

the driver license fee and explain in "Notes and

Comments."

Total collections. Include all receipts for the licenses or

permits shown in previous columns. If you are using a

Lotus template, these will be calculated automatically.

Net licenses in force at end of reporting year. Enter the

number of driver licenses in force by class. This is

determined by deducting from the number of unexpired

licenses any cancellations resulting from licensing in

another State or deaths, revoked licenses, and any

licenses in a "suspended" status at the end of the year. 

Each driver should be counted only once in this column

and should be included in the category for the highest

class license he or she holds. The total of this column

will not be equivalent to the total in Section I in most

cases because of the various kinds of permits and

licenses issued in some States that will not be included in

Section I.

Section III. Commercial Driver License--

Number of Licensed Driver Disqualified 

The total count of disqualified holders of commercial

driver licenses by indicated categories is also requested

annually. This count should also include disqualified

holders of commercial driver instruction permits. The

driver is counted as disqualified in the year his/her disqualification commenced. If a driver is disqualified for

more than one offense, the driver should be counted only

once.

SUPPLEMENTAL INFORMATION

Any legislative actions or administrative decisions made

during the reporting year that affect driver license

administration or fees should be described in "Notes and

Comments." Copies of new legislation and administrative regulations affecting driver licensing should be sent

to the FHWA, Office of Highway Policy Information,

HPPI, Washington, DC 20590. 
 

 

5-1

CHAPTER 5

REPORT IDENTIFYING STATE TAXATION OF MOTOR CARRIERS

Form FHWA-571, Receipts from State Taxation of notation on the front of the form. If a State is not

Motor Vehicles Operated for Hire and Other Motor required to submit this form for reporting other data a

Carriers, is designed to show the taxes and fees separate notation showing these fees should be entered

associated with the operation of motor carriers. on form FHWA-561.

The Trucking Industry Regulatory Reform Act of 1994, Page 1 of form FHWA-571 provides space for entering

effective January 1, 1995, abolished the necessity to the State name, the year being reported, notes and

register and collect fees and taxes on motor carriers by comments, and a reference to identify the source of the

category or type of vehicle. records.

Although the States are no longer required to register and The following instructions apply to the entries to be made

collect fees and taxes on motor carriers by category or on page 2. Motor-carrier taxes are divided into the

type of vehicle the States have the option of continuing to following general types and a column is provided for

do so. each:

Vehicles operated for hire and certain other vehicles that, Column (1) Gross receipts taxes.— Only taxes levied

because of the special character of their operations, are specifically on motor carriers should be shown. Receipts

subject to taxation not imposed on motor vehicles in from general taxes, such as State sales taxes or gross

general, are known as motor carriers. receipts taxes applying to business operations in general

A microcomputer template using Lotus 1-2-3 is available public utilities) should not be reported as special taxes on

for form FHWA-571. States are encouraged to use the motor carriers.

microcomputer template. See Appendix B for

information about the template and options for electronic

transmission of data to FHWA.

INSTRUCTIONS FOR FORM FHWA-571

Form FHWA-571 is designed to provide a record of the

special State taxes, in addition to registration fees, paid

by each type and class of motor carrier. All Stateimposed motor-carrier taxes should be reported

regardless of the collecting agency. Taxes imposed by

county or municipal governments on motor vehicles

operated for hire and on other motor carriers should not

be reported.

In some States, special motor-carrier taxes, although

imposed by the State, may be collected by county or local

officers who deduct certain amounts for collection

expenses (or for other purposes) and forward the net

collections to the State collecting agency. If this is the

case, the amounts deducted should be included. If the

deductions are not of State record, an estimate should be

supplied.

Registration fees received for vehicles with base plates

from other States under a proration agreement such as

the International Registration Plan (IRP) should be

reported on this form either in one of the columns or by a

(or to a restricted class of business operations such as

Column (2) Distance taxes.— Show distance, weightdistance, or passenger-distance taxes.

Column (3) Weight or capacity taxes.— Show speciallicense taxes based upon weight or capacity, but separate

from registration fees.

Column (4) Flat rate fees.— Show flat business fees or

occupation license fees.

Column (5) Certificate or permit fees.— Show fees

imposed for the issuance of certificates of convenience

and necessity.

Column (6) Miscellaneous fees.— Show receipts that do

not fit in other categories.

Column (7) Total motor-carrier taxes paid.— Enter the

sum of columns (1) through (6).

No specific place is provided on FHWA-571 to show

delayed collections of motor-carrier taxes. However,

these should be included, and notes should be given to

show the amounts that relate to the taxation of prior

years.
5-2

Type of vehicle and class of service.— The classification

scheme is intended to provide for all the major classes of

motor carriers found in the States. It should be followed

as closely as the data will permit, but the classification

headings on the left side of form FHWA-571 may be

modified as necessary to report correctly the

classification in effect in any given State. A full

explanation of the modification should be given in a note.

Item 1. Passenger cars for hire.— Include taxicabs,

livery cars, U-Drive-It cars and other automobiles

operated for hire.

Items 2., 4., 5., and 7. provide for reporting two classes

of service by for-hire carriers, intrastate and interstate. 

This information should be reported to the extent that the

data are available.

Item 2. Motor buses.— All motor vehicles that seat more

than 11 passengers and that are operated for hire or are

otherwise subject to taxation as motor carriers should be

included here. School buses should not be included on

this form unless they are subject to special motor-carrier

taxes, in which case, the details should be given in notes

to the form.

Items 2.A., 4.A., 5.A., and 7A. Common carriers.— The

term "common carrier" is applied to vehicles that are

offered indiscriminately to the public for hire at

published rates. (The term "public carrier," often applied

to buses, is interchangeable with the term "common

carrier.") The term is commonly restricted to those

carriers that operate over regular routes or between fixed

termini and under schedules, but some States recognize a

class of common carriers that does not operate over

regular routes or between fixed termini. Those vehicles

that are defined under State laws as common carriers in

addition to those whose operations conform, in general,

to the definition of a common carrier given above should

be listed as such on form FHWA-571.

Item 2.B. Other motor-carrier buses.— Include here all

sightseeing, charter and contract buses.

Item 3. Total passenger motor carriers.— Enter the sum

of items 1. and 2.C.

Item 4. Motor trucks.— Enter motor-carrier taxes

imposed on single-unit (straight) trucks.

In some States, certain classes of commercial operators

who transport their own goods or property are required

to pay motor-carrier taxes. Items 4.C., 5.C., and 7.C.,

"Private motor carriers," are reserved for this class of

carrier.

In a few States, the term "private carrier" is used to

distinguish for-hire carriers other than common carriers. 

Care should be taken that such vehicles are reported as

for-hire carriers, in items 4.B., 5.B., or 7.B., and not as

private carriers.

Item 5. Tractor trucks, road tractors, etc.— Report

motor-carrier taxes on all trucks equipped as power units

for combination vehicles.

In many States, tractor trucks, road tractors, etc., are not

segregated from trucks. If such is the case, the fact

should be noted. If tractor-semitrailer combinations are

registered as trucks, that fact should also be explained. 

If, as is sometimes the case, tractor-semitrailer

combinations are not reported separately but as single

entities, the fees paid by such combinations should be

recorded in item 5. and so indicated. Extra trailer units

should be reported in item 7.

In some States, motor-carrier taxes are imposed on

trailers and semitrailers as separate vehicles. In other

States, the tax that would ordinarily be charged against

the trailer or semitrailer is included in the tax imposed on

the hauling vehicle. If, in a given State, the charges

against trailers and semitrailers are included in the

payments of motor-carrier taxes reported for trucks (item

4.) or tractors (item 5.), the fact should be explained in a

note.

Items 6., 8., and 9.— Intended as summary entries. In

item 9., enter the total figures for all motor

carriers— passenger and freight.

Item 10.— The instructions for the completion of form

FHWA-561 (Chapter 3) state that motor-carrier taxes

imposed in lieu of registration fees on State-based

vehicles should be included with the registration fees

reported on that form. On form FHWA-571, such

payments should be reported as motor-carrier taxes with

a note explaining that they are imposed in lieu of

registration fees and are included on form FHWA-561. 

This procedure is adopted so that the total of motorcarrier taxes, as such, may be obtained. Taxes imposed

in lieu of registration fees on out-of-State vehicles should

be reported on form FHWA-571.
6-1

CHAPTER 6

REPORT IDENTIFYING DISPOSITION OF STATE MOTOR-VEHICLE

AND MOTOR-CARRIER REVENUE

This chapter provides instructions for preparing form FHWA-566 forms are used, the source agency for each

FHWA-566, State Motor-Vehicle Registration Fees and form must be clearly identified.

Other Receipts: Initial Distribution by Collecting

Agencies. This form summarizes the gross revenues Ordinarily, refunds should have been deducted from

collected from the State taxation of motor vehicles, driver receipts on forms FHWA-561, FHWA-562, and

licenses and motor carriers and then reports the initial FHWA-571. If not, they should be deducted and

distribution of those tax receipts. Form FHWA-566 identified on form FHWA-566 in items 1.D, 1.E., or 1.F.,

provides a measurement of the funds flowing from so that item 1.G. will record net receipts after refunds.

collecting agencies to expending agencies. 

The revenues reported on form FHWA-566 should be

consistent with the receipts reported on forms

FHWA-561, FHWA-562, and FHWA-571, and the

distributions reported on form FHWA-531. (See

Chapters 3, 4, 5, and 8 for discussions of the respective

reports and the data being reported.) Completing form

FHWA-566 does not eliminate or alter the requirement

for the completion of forms FHWA-561, FHWA-562,

and FHWA-571. 

GENERAL CONSIDERATIONS

In most cases, form FHWA-566 should be prepared from

the records of the State agencies that are responsible for

the collection and distribution of funds from the taxation

of motor vehicles, drivers, motor carriers, and other forhire vehicles, i.e., State department of motor vehicles,

State department of public safety, State public utilities

commission, etc. When the collecting agency is not the

distributing agency and only serves as a conduit to

transfer the funds to the distributing agency, form

FHWA-566 should be prepared by the State office or

agency that maintains the most complete record of the

funds and their distributions, i.e., State treasurer, State

comptroller, State auditor, etc. 

When separate forms have been prepared by different

collecting agencies, the combined revenue totals of the

individual forms should be reported in the appropriate

column or columns on form FHWA-566. For example, if

two State agencies are involved in the collection of State

motor-carrier taxes and each agency prepares a separate

form FHWA-571, total revenues should be combined and

reported in column (C), FHWA-566. 

If the State has a preference, it may prepare separate

FHWA-566 forms for each collecting and distributing

agency to account for funds shown on forms FHWA-561,

FHWA-562, and FHWA-571. When separate

Some States include on forms FHWA-561, FHWA-562,

or FHWA-571 only the receipts collected by the

department of motor-vehicles, public utilities

commission, or similar agency and exclude receipts (such

as truck-weighing fees or overload permit fees) that are

collected and retained by the State highway agency or the

State department of public safety. However, the intent of

these forms is to capture and report all motor-vehicle,

driver-license, and motor-carrier receipts, and any others

related to vehicle ownership and operations. Any

receipts not reported on the FHWA forms should be

reported and identified on a schedule attached to forms

FHWA-561, FHWA-562 or FHWA-571 and similarly

accounted for on form FHWA-566 in items 1.D, 1.E., or

1.F. 

Table MV-106 in Highway Taxes and Fees, How They

Are Collected and Distributed should be used as a guide

for the taxes and fees to be accounted for on form

FHWA-566 and the disposition of those revenues in

item 8. of form FHWA-566.

INSTRUCTIONS FOR FORM FHWA-566

Page 1 of form FHWA-566 provides space for entering

the State name, the fiscal or calendar reporting year,

notes and comments, and a reference to identify the

source of the information reported on the form.

Page 2 of form FHWA-566 provides for an accounting of

the receipt and allocation of funds reported on forms

FHWA-561, FHWA-562 and FHWA-571.

Item 1. Reconciliation of receipts.— Enter the total

receipts during the fiscal or calendar year as reported on

(1) form FHWA-561, registration fees, title fees, dealer

licenses, and other receipts in column (A); (2) form

FHWA-562, driver licenses in column (B), and (3) form

FHWA-571, motor-carrier taxes in column (C). 
6-2

Ordinarily the receipts reported on form FHWA-566, here. Instead, these State-to-local transfers should be

item 1. will be the same as those reported on form identified and reported in item 8.

FHWA-561, section IV, on form FHWA-562, item II.F.,

column (5), and on form FHWA-571, item 9.,

column (7). However, if these are compiled for a

registration year that does not coincide with the year

being reported, differences may exist. When differences

exist, a reconciliation statement should be completed

(items 1.D. through 1.F. may be used for this purpose),

or an explanation provided in a note or in a supplemental

statement.

Instructions for forms FHWA-561 and FHWA-571

provide for recording, on both forms, the payments of them. Additional information on collection expenses is

motor-carrier taxes imposed in lieu of registration fees. recorded in item 10.

To avoid any duplication, the amounts included on form

FHWA-571 should be deducted in item 1. (items 1.D. When total collections are deposited in the State treasury

through 1.F.), FHWA-566, column (A) with the notation as a credit to a transportation trust fund, a highway trust

that the distribution has been accounted for on form fund, or the State highway agency, without any deduction

FHWA-566, column (C) or on a separate form for collection expenses, no entry needs to be made in

FHWA-566. item 4. The entire distribution should be shown in item

Item 2 Deductions by county and local

officials.— Record the collection and administrative

expenses deducted by county and other local officials that

act for the State in processing motor-vehicle

registrations, issuing driver licenses, and handling other

functions normally associated with a State Department of

Motor Vehicles (DMV) or similar agency. Local

officials include both agents of local governments, and

private agents authorized to issue registrations and

drivers licenses. 

Item 2.A. Collection and administrative expense— Enter

the amount either retained by or paid to county and other

local governments for their expenses in: collecting

motor-vehicle and driver license fees, administering Item 6. Balance undistributed at end of previous

motor-vehicle registration laws, issuing driver licenses,

and providing other services normally associated with a

State department of motor vehicles.

When estimated service charges for local collection

expenses are included in item III.E, FHWA-561, those

local service charges for motor-vehicle registrations and

driver licensing should also be included in this item.

Item 2.B. Other— Enter and specifically identify any fund, or a highway-user distribution account in the State

other deductions by county or other local officials, for treasury. In some cases, it may be necessary to combine

services other than those reported in item 2.A. this fund balance with any amounts in the hands of the

In some cases, the local officials also deduct the undistributed funds.

proportion of receipts provided by law to be turned over

to the local governments for highway or other purposes. 

The amount of such deductions should not be entered

Item 3. Net receipts by State collecting agency.— Enter 

net receipts after deducting item 2.C. from item 1.G.

Item 4. Deductions by State collecting agency for

operation and administration.— Enter the amount

retained or deducted by the State collecting agency for

revenue collection expenses associated with the

administration of motor-vehicle, driver-license, and

motor-carrier taxation prior to depositing the net

collections in the State treasury or otherwise disposing of

8. This may occur when the expenses of the collecting

agency are paid from a highway or transportation fund

after the initial distribution of revenues is made. 

When total collections are deposited in the State general

fund for State general purposes, and collection agency

costs are paid by the State general fund, then such costs

should be entered in item 4., with the net proceeds shown

as distributed to the State general fund in item 8. If

actual collection agency costs are unavailable, then they

should be estimated.

Item 5. Net funds available for distribution.— Enter the

amount remaining after subtracting item 4. from item 3.

year.— Record any balances in the hands of the State

collecting agency, or to its credit, at the beginning of the

reporting year. If the amount differs from that reported

as undistributed at the end of the prior year, a note should

explain the adjustment. 

If form FHWA-566 is prepared from records of the State

treasurer, auditor, or comptroller, the balance may be the

amount on hand in a revolving fund, the State general

collecting agency to account for the total amount of

Item 7. Total funds available for distribution.— Enter

the sum of items 5. and 6.
6-3

Item 8. Amounts distributed.— Record the allocation of

motor-vehicle, driver-license, and motor-carrier revenues

to the expending agencies or funds. In general, the

distributions in items 8.A. through 8.J. should be

consistent with the information in table MV-106 in

Highway Taxes and Fees, How They Are Collected and

Distributed or current statutes where they supplant those

given in table MV-106. In the event these revenues,

together with other road-user taxes, are placed in an

intermediate clearing fund, such as a highway-user tax

distribution fund, a balanced statement of the clearing

fund should accompany form FHWA-566.

Item 9. Balance undistributed at end of year.— Enter

the amount remaining after subtracting item 8.K. (total

funds distributed) from item 7. (total funds available for

distribution).

Item 10. Expenditures by State collecting

agency.— Record amounts expended by the State

department of motor-vehicles or other collecting agency. 

In most cases, the entry in this item will equal the State

collecting agency deductions reported in item 4.

When the collection expenses reported in item 4.

represent appropriations rather than actual expenditures,

there may be differences between items 4. and 10. If the

collection agency’s retained revenues differ from its

actual expenditures in a given year, then the difference

should be explained in a note and reconciled by

providing the collecting agency’s opening and closing

cash balances. 

Item 10 may also be used to report additional collection

expenses that were funded by other revenue sources,

such as State general funds or highway funds. A note

should be provided to identify the funding source of any

additional expenditures that are included. 

The expenditure categories shown in items 10.A. through

10.G. reflect the typical activities of a State department of

motor-vehicles or similar collecting agencies. Some

State collecting agencies perform highway law

enforcement and safety functions, in addition to the

administration of motor-vehicle, and driver-license taxes

and fees. To the extent possible, collecting agency

expenditures should be classified by the major categories

shown in items 10.A. through 10.G. If a State collecting

agency is not involved in some of the activities listed,

then those items should be left blank. 

Items 10.A. through 10.D.— Enter any State collecting

agency expenditures on highway law enforcement and

safety activities. For detailed definitions of these items,

refer to the Chapter 8 instructions for item A.5.,

FHWA-532. 

Expenditures for highway law enforcement and safety

activities made by other State agencies should be

excluded from these items, and reported on form

FHWA-532, item A-5. 

Amounts reported in these items are combined with

amounts reported on form FHWA-532, items A.5.a.

through A.5.d, to arrive at a total figure for expenditures

on highway law enforcement and safety by all State

agencies. To avoid duplication, any amounts reported on

form FHWA-566, item 10., should not be reported on

form FHWA-532. 

Items 10.E. through 10.G.— Enter the collecting agency

expenses for the administration of motor-vehicle, driverlicense, and motor-carrier taxation. These expenses

should not be duplicated in any item on form

FHWA-532.

Item 10.H.— Enter and identify any expenditures of the

State collecting agency included in item 4. that are not

easily categorized into items 10.A. through 10.G. 

Expenditures reported in this item should not be

duplicated in any item on form FHWA-532.

SUPPLEMENTAL INFORMATION

Form FHWA-566 is a condensed statement of finances. 

To assist the FHWA Washington Headquarters in

interpreting the data on the form and in understanding the

transactions, it would be helpful if the States provided

supplemental schedules, such as balanced statements of

the motor-vehicle inspection fund, driver training fund,

and highway patrol fund, with form FHWA-566 where

appropriate. Copies of annual reports or budgets of the

department of motor-vehicles, the department of public

safety (highway patrol), and other collecting agencies

should be supplied to the Washington Headquarters as

reference material. Also, when legislation affects the

amount or distribution of motor-vehicle or motor-carrier

revenues, a copy of the legislation should be provided to

the Washington Headquarters (HPPI-10).
7-1

CHAPTER 7

PERIODIC SPECIAL REQUESTS FOR MOTOR-FUEL, MOTOR-VEHICLE,

DRIVER-LICENSE, AND FINANCIAL INFORMATION

The reports on motor fuels, motor vehicles, driver for that State in the form of FHWA table MV-103 and

licensing, motor carriers, and highway finance in this asking the State to update its data.

Guide provide FHWA with data and information for the

national summary tables. These tables and information

are published in Monthly Motor Fuel Reported by

States, annually in Highway Statistics, and in Our

Nation's Highways. FHWA tables MF-106, MV-106, and S-106 for their

The FHWA also produces a wide variety of other information for the next publication of the tables and to

materials, including special tables, that provide valuable forward current information on the disposition of

background detail on, for example, motor-vehicle and highway-user taxes and taxes dedicated to highways as

motor-fuel tax laws and various aspects of the provided by State law. Table MF-106 presents the legal

administration of these tax systems. These materials are and administrative provisions for allocating State motorsupported from information requested in this chapter. To fuel taxes. Table MV-106 provides similar information

obtain data for these materials, the FHWA makes on State motor-vehicle registration fees, driver-license

periodic special requests of the States for certain motor- fees, and motor-carrier taxes. Table S-106 provides

fuel, motor-vehicle, driver-license, highway-finance, and similar information for State taxes and fees dedicated for

toll facility information that is not obtained through the highways that are not classified as highway-user taxes

standardized reports in this Guide. This chapter outlines and fees.

the nature of these periodic special requests, the

procedures involved, and the use of the information DRIVER LICENSE ADMINISTRATION,

obtained.

HIGHWAY TAXES AND FEES

Approximately every 2 years, the FHWA requests each

State to provide current information on State taxation of

motor-fuels, motor-vehicles, licensed drivers, and motor- Driver License Administration Requirements and Fees. 

carriers; and on the administration and disposition of The information, provided by the State and Provincial

these highway-user taxes and other State taxes that were driver licensing authorities, details the administrative

dedicated for highways. This is usually accomplished by requirements and qualifications to obtain a driver license

reviewing certain FHWA tables from the publication, in all States, the District of Columbia, Puerto Rico, and

Highway Taxes and Fees - How They Are Collected and

Distributed, and updating the information to reflect

current laws and practices.

State motor-fuel taxation and administration.— State 

authorities are requested to review the motor-fuel

information for their State in FHWA tables MF-101,

102, 103, 104, 105, 107, 108, 109, and 110; and to make

any changes necessary to update the information and to

reflect new effective dates.

State motor-vehicle registration fee schedule.— Certain

vehicles are selected to show the range of registration

fees, from small passenger cars through commercial

vehicle combinations. Information is requested by

sending each State copies of the most recent information

Disposition of motor-fuel, motor-vehicle and

motor-carrier tax receipts and other State taxes for

highways.— Each State is provided the latest published

State. The States are requested to review and update the

REQUIREMENTS, AND FEES

Approximately every 2 years, State authorities are

requested to review the entries for their State on FHWA

tables DL-101 through 107 and make any changes

necessary to update that information for the publication

the Provinces of Canada. Information on driver license

content and driver improvement provisions are also

included. 

STATUS OF TOLL FACILITIES

The report, Toll Facilities in the United States, BridgesRoads-Tunnels-Ferries, contains selected information on

toll facilities in the United States. The information is

based on a survey of toll facilities in operation, financed,

or under construction. The report contains information

on the name, financing or operational authority, location

and termini, feature crossed, length, and road system for

toll roads, bridges, tunnels, and ferries that connect

highways. It also contains a list of those projects that are

under serious consideration as toll facilities, awaiting
7-2

completion of financing arrangements, or proposed as

new toll facilities that are being studied for financial and

operational feasibility. Finally, it contains data on the

receipts and disbursements of public toll facilities. This

report is not intended to be a complete reference on toll

facilities nor is it intended to duplicate data published by

other organizations.

This report is updated every 2 years. The States are

requested to provide current information on the status of

toll facilities with an effective date of the following

January 1. 
8-1

CHAPTER 8

REPORTS IDENTIFYING HIGHWAY INCOME AND EXPENDITURES OF

STATE GOVERNMENTS

This chapter details the procedures for completing form highway needs and promote discussion in the

FHWA-531, State Highway Income, and form development of the appropriate future Federal

FHWA-532, State Highway Expenditures. These forms responsibility in highway transportation. 

have been designed to record information on a State

government's highway and mass transit financing

activities. 

Form FHWA-531 reports the State government's

highway-user revenue and other revenues used to fund a

State’s highway and mass transit expenditures. Form

FHWA-532 reports the State government's highway and

mass transit expenditures, and any nontransportation

distributions from highway-user revenues. This reporting

is inclusive of all State agencies with highway and mass

transit functions. These agencies include: departments of

transportation (DOT), highway departments or highway

agencies, State Police or State Highway Patrol agencies,

toll authorities, quasi-State and multi-State agencies, and

others. References to State DOTs include State highway

departments and agencies.

Forms FHWA-531 and FHWA-532 together are intended

to provide an annual cash flow statement for highways

and mass transit in which major revenue sources and

major expenditure items are identified. Together, forms

FHWA-531 and FHWA-532 provide a balanced

statement of all funds controlled or administered by State

agencies that perform highway-related functions. The

data reported on these forms provide the basis for entries

in the FHWA's SF series of highway finance tables.

The FHWA highway finance tables (State and local) are

the basis of important national summaries of highway

finance information that are used by FHWA, the U.S.

Department of Transportation, the Office of Management

and Budget, the Congress and other groups to develop

national transportation policy and programs. For

example, highway finance data are used in a report to

Congress on the future highway needs of the Nation that

the Secretary of Transportation is required to prepare

biennially (Title 23 U.S. Code, section 502(g)). 

The finance summaries in combination with Highway

Performance Monitoring System (HPMS) data permit

FHWA to infer relationships and trends about changes in

highway conditions and performance to changes in

highway expenditures and investment patterns for all

levels of government. These data are used in estimating

Each form provides spaces for entering the State name,

the reporting year, notes and comments, the data

reporting source and the preparer of the forms. Pages 2

and 3 of each form provide eight columns, columns (b)

through (I), for the State's convenience in identifying and

reporting at least the major funds administered by the

State DOT or other reporting agency. The columns may

also be used to report data by agency, function, or

activity. This structure makes it relatively easy for the

user of the two reports to trace the flow of revenues into,

and expenditures out of, each fund. Page 1 of forms

FHWA-531 and FHWA-532 provide for recording

essential details of various summary entries on pages 2

and 3. Additional detail may be provided on page 4 or in

a note or supplemental schedule.

This chapter presents the detailed instructions for each

form separately, but neither form can be completed

without a working knowledge of the other. The two

reports constitute an integral unit. Before discussing how

to complete each form, the chapter covers important

general considerations regarding the forms. It is strongly

suggested that the user of this chapter become familiar

with this material and with the instructions for both forms

before attempting to complete either form.

IMPORTANT GENERAL CONSIDERATIONS

Reporting year.— States may choose to report data for a

either a calendar year, or the State fiscal year. Indicate

the selected 12-month reporting period on page 1. The

due dates for forms FHWA-531 and FHWA-532 are set

according to the data reporting year on the forms. See

Chapter 1 for information on form due dates. Once the

State has chosen the time period basis for its reports, it

should continue to use the same reporting year basis for

future reporting.

The FHWA-531 and FHWA-532 reports are part of a

group of statistical and economic evaluators of State

highway operations and are not intended to be strictly

accounting records. A State should use the reporting

year that permits it to provide the most accurate and

complete data by the required due dates. Forms
8-2

FHWA-531, FHWA-532, FHWA-534, FHWA-541, supplemental report for each State agency not included

FHWA-542, and FHWA-543 must all be prepared for the on the primary report. Provision must be made to report

same time period. the highway and mass transit related activities of State

State highway receipts and expenditures should correlate commissions, departments of public safety (State police

and reconcile with other reported information on State and highway patrol), Governor's office of highway safety,

highway operations, i.e., DOT annual financial reports, motor-vehicle departments, special toll (or free road)

annual State Budget, etc. Differences between data authorities and State bond commissions. 

reported on form FHWA-531 and that reported on forms

FHWA-556 and FHWA-566 caused by the use of In some States, aid to local governments for highway

different reporting years should be noted on form

FHWA-531.

Accounting methods.— Many State DOTs keep accounts

on an accrual basis, while others record transactions on a

cash basis. Forms FHWA-531 and FHWA-532 should

be compiled on a cash basis. Because States differ in

their handling of accrued revenues and expenditures,

reporting on a cash basis ensures comparability of data

among State agencies and functions. 

Converting from an accrual to a cash basis primarily

involves the handling of accounts receivable and payable. 

The State must avoid reporting receivables as income and

payables as expenses. The principal method of

conversion is the use of net entries, that is, add prior year

and subtract current year entries to the appropriate

accounts. 

Under accrual accounting procedures, some State DOTs

carry an "accounts payable" account, which usually

consists of contractors' retainage and similar reserves. In

converting to a cash basis, the net change (plus or minus)

in "accounts payable" from beginning to end of the year

should be absorbed in the appropriate expenditure item

on form FHWA-532. If the entry mostly reflects amounts

retained for construction work, then the net change should

be absorbed in FHWA-532, item A.1. If the proper

expenditure item cannot be identified, the net change in

"accounts payable" should be reported in item A.4. on

form FHWA-532 and described in a note. 

Coverage.— Forms FHWA-531 and FHWA-532 are

designed to accommodate the accounting transactions of

State DOTs and all other State agencies which have

highway or mass transit functions. Receipts and

expenditures of other State agencies should be shown in

separate columns from those of the State DOT on the

forms. 

States that prefer not to commingle State DOT

transactions with the highway transactions of other State Funds to be reported.— Columns (B) through (H) on

agencies on the same forms should provide an additional pages 2 and 3 of forms FHWA-531 and FHWA-532

form FHWA-531 and form FHWA-532 or a similar should be used to record at least the major funds

agencies such as State park boards, conservation

purposes is derived from Federal shared revenues or

from State taxes, fees, or appropriations (other than roaduser taxes) that do not pass through State DOT accounts. 

Any Federal or State funds known to have been

distributed to local governments for highway activities

during the year should be included on forms FHWA-531

and FHWA-532 or reported on a supplemental

statement. (See the discussion later in this chapter

regarding items B.6., B.7., and B.8. on form FHWA-531

and item A.10. on form FHWA-532.) 

Receipts and disbursements by the State government for

mass transit activities are included on forms FHWA-531

and FHWA-532. The reporting of mass transit

information should exclude public and private mass

transit operators. Operator data are reported through the

Federal Transit Administration’s (FTA) Section 15

program, and should be omitted from FHWA-531 and

FHWA-532. Only State government subsidies of mass

transit operators, or independent programs operated by

the State Government should be reported. A separate

column on form FHWA-531 and FHWA-532 should be

used for mass transit data. 

Toll facility data.— Toll facility data should be identified

and reported separately from other State highway finance

data on forms FHWA-531 and FHWA-532. Toll facility

data may be reported through annual audit reports, on

optional form FHWA-539, or in separate columns on

forms FHWA-531 and FHWA-532. See Chapter 10 for

specific instructions on toll facility reporting. 

Classification of local governments.— Local

governments are defined to include counties, townships,

municipalities and agencies subordinate to them. 

Subordinate agencies to local governments may include

special highway authorities and districts, regional

authorities, and special multi-jurisdictional authorities. 

Local government highway funding should be reported

on form FHWA-536. See Chapter 11 for specific

instructions on local highway finance reporting.
8-3

administered by the State for highways and mass transit. In general, all motor-fuel and motor-vehicle distributions

If reporting by fund categories, each major fund should be shown on form FHWA-556, item 8, and form

reported in a separate column. Column (B) should be FHWA-566, item 8., should be included as receipts on

used to identified funds from the Federal Highway form FHWA-531. Any distributions that are not included

Administration (FHWA). Minor funds can be grouped in on form FHWA-531 should be identified in a note. 

a single column. In addition, since forms FHWA-531 and

FHWA-532 together constitute a balanced statement of The following types of expenditures should be recorded

income and expense, transactions in each fund should be as expenditures on form FHWA-532 and the associated

in balance between forms FHWA-531 and FHWA-532. revenues should be included in gross income on form

If a single highway fund is responsible for all of the

highway-related activities in the State, or if highway ! Expenditures for State highway police or other

transactions are made entirely through the State general law enforcement activities related to State

fund, column (a) should be used to represent the highway highways should be reported on form

fund's financial transactions. The State should use FHWA-532.

additional columns for informational purposes, for

reporting by activity, function, or State agency, and for ! Payments to other State agencies for services on

reporting mass transit activities. State highways or debt service on State highway

When all highway and mass transit activities are funded Highway costs include payments to the State

through a transportation fund, separate columns for attorney general's office for legal services, to the

highways and mass transit should be used. Additional State auditor for auditing services, or to a State

columns should be used for informational purposes and fiscal officer for debt administration or debt

for reporting by activity, function, or State agency. service payments in connection with State

Sinking funds or other debt reserves for highway debt

should be reported in a separate column. If the State ! Payments to local governments for work on local

DOT allocates funds for debt service to an account roads and streets are reported as transfers on

maintained by the State treasurer, State bond commission, form FHWA-532.

or other State fiscal officer, the complete transactions of

the debt funds should be recorded on forms FHWA-531 ! Expenditures on public roads for the benefit of

and FHWA-532. If the State prefers, the State may report private interests and the associated private

sinking fund and debt service transactions on optional contribution or reimbursement are included on

form FHWA-543 instead of on forms FHWA-531 and form FHWA-532. An example is when the State

FHWA-532. See Chapter 9 for specific instructions on constructs an interchange to give a business

reporting State transportation debt. access to the State highway system and the

Sinking funds and debt service for mass transit should be State for the cost of the interchange.

reported separately from information on highway debt. 

Debt service for mass transit should be reported in ! State expenditures and transfers for mass transit

item A.11.d. on form FHWA-532. activities should be included on form

When highway activities are funded through several

sources, the State may find that reporting information in ! Expenditures of highway-user revenues for

separate columns by activity, function, or fund provides a nonhighway purposes are identified and reported

clearer presentation of its highway finance. on form FHWA-532.

Income and Expenditures to be reported.— For

information on specific State taxes and fees to be

accounted for, see tables MF-106, MV-106, and S-106 in

the publication Highway Taxes and Fees, How They Are

Collected and Distributed. These tables identify motorfuel, motor-vehicle and other State tax revenue

distributions for highways and mass transit. 

FHWA-531:

bonds should be included on form FHWA-532. 

highway bonds.

company either partially or fully reimburses the

FHWA-532.

All other receipts and expenditures related to highway

and mass transit activities should be recorded on forms

FHWA-531 and FHWA-532 with the following

exceptions:

! Any refunds and costs associated with the

collection and administration of highway-user
8-4

taxes and fees that are not deducted on forms ! When construction projects are controlled

FHWA-556 and FHWA-566, should be jointly by State and local governments, only the

deducted in the detail section for items B.1. and State’s share of the costs would appear on form

B.2. on form FHWA-531. Refunds, collection FHWA-532. The local government’s share of

expenses and administrative costs of highway- costs would appear on form FHWA-536. For

user taxes and fees should not appear in example, if a local government performed work

item A.4. or A.13. on form FHWA-532. on a road under State jurisdiction, but the State

! Receipts and disbursements of State toll oversight functions, then the local government’s

facilities should not be reported with other State construction costs would be reported on form

information on forms FHWA-531 and FHWA-536, while the State’s engineering and

FHWA-532. Toll facility information should be overhead costs would be reported on form

reported according to the instructions in FHWA-532. 

Chapter 10. The only toll-related information

reported on forms FHWA-531 and FHWA-532 ! When a local government has controlled all

involves State transfers to toll facilities and toll aspects of a project, such projects would be

facility transfers to State highway programs. reported on form FHWA-536, and excluded

(See instructions for form FHWA-532, item from form FHWA-532. This is true even if the

A.8. and for form FHWA-531, item B.5.) local government has contracted with the State

! The proceeds from and redemption of short- acted only as a subcontractor to a local

term notes should be omitted from forms government, then the State work on the local

FHWA-531 and FHWA-532. Notes project is omitted from form FHWA-532 and

outstanding should be included as negative the associated reimbursements to the State are

adjustments to the opening and closing balances omitted from form FHWA-531. This avoids

on FHWA-531 an FHWA-532. Interest costs duplication between forms FHWA-536 and 

on notes should be reported on FHWA-532 in FHWA-532, by assigning project costs to the

item A.6.b. responsible level of government. 

! Receipts that are reductions of previous ! Reimbursements to the State from private

expenditures should not be reported on form sources for nonhighway expenditures are

FHWA-531. Instead those receipts should be omitted from form FHWA-531. The

removed from the associated expenditure items nonhighway expenditure would also be omitted

on form FHWA-532. For example, the sale of from form FHWA-532. Examples are when the

land originally purchased for right-of-way State is reimbursed for paving the driveway of a

should be offset against item A.1.a. on form private individual while it is repaving a

FHWA-532. neighborhood street, or when it resurfaces a

! When construction projects cross State lines and developer or a private street in a townhouse

involve expenditures by two States, each State development for a homeowners' association. In

should report only its share of the total project these cases, the State has acted as a private

expenditures. For example, the State awarding paving contractor and neither the

the contracts and administering the project reimbursement nor the expenditure should be

should report only its share of expenditures from reported. Similarly, if the State sells bags of

its own revenues. The reimbursing State should salt to private individuals for private use, the

include its share of project costs as a direct State's salt and snow removal expenditures

expenditure and not as a transfer. The net result should be reduced by the cost of salt sold to

is that each State will receive credit for its private individuals.

respective share of the projects costs. No fund

transfers are reported between the States. This

treatment avoids duplicating revenues and INSTRUCTIONS FOR FORM FHWA-531

expenditures when State data are combined into

national tables.

retained responsibility for engineering and

to perform some of the work. If the State has

shopping center parking lot for a private

The following procedures should be followed in

recording data for the items on page 2 and in providing
8-5

the detail for the supporting schedule on page 1 (the items directly related to the taxation on the highway use and

on page 1 are numbered to correspond to the items on highway users of gasoline, gasohol and special fuels as

page 2). reported on form FHWA-556. 

Item A. Balances on hand at beginning of year.— This

item records the balances available at the beginning of the

reporting year. The balances are composed of cash and distributions in table MF-106 in Highway Taxes and

the value of investments at cost. These balances should

include (a) balances in all funds standing to the credit of

the State DOT, including bond sinking and debt service

funds, (b) highway and mass transit fund balances to the

credit of other State agencies that are included on forms

FHWA-531 and FHWA-532, and (c) unexpended or

unallocated proceeds of previous years' bond sales. The

balances are identified by fund, agency, or activity in

columns (A) through (H). 

Item A.1. Reported at end of prior year.— Enter the The reconciliation can be either a revised page 1 of form

amount of cash and investments reported as an FHWA-531 or a supplemental statement containing

unexpended balance in item C. on form FHWA-532, for information similar to detail items B.1.a. through B.1.f.

the prior year.

Item A.2. Adjustments of balance.— Enter any motor-fuel tax revenue that was distributed by the

adjustments to the prior year's ending balances. collecting agency. This amount should correspond to the

Generally, beginning year balances should be revised total distributions reported on form FHWA-556, item 8. 

only as a result of an audit or to add a fund or agency to If form FHWA-556 is prepared for a different reporting

the reporting. Lapsed appropriations or allocations year than form FHWA-531, the amount reported on form

should not be shown as revisions of the balances because FHWA-556, item 8 is still reported in this item. 

they may not represent cash transfers. Compensating adjustments are made in item B.1.b. 

When lapsed appropriations or allocations result in a

reversion of funds to the State general fund, the resulting

cash transfer should be accounted for as a transfer to the

State General Fund in item A.13.a. on form FHWA-532.

When adjustments are made in item A.2. to revise a

balance in item A.1., an explanation of the revision

should be provided in a note.

Transfers among the funds reported on form FHWA-531

should not be recorded as adjustments of balances. 

Transfers are reported in item C. on form FHWA-531

and in item B. on form FHWA-532.

Item A.3. Balance at beginning of year.— Enter the

result of item A.1. and adjustments from item A.2.

Item B. Income.— Ten categories are provided for

summarizing and reporting income by fund, agency, or

activity.

Item B.1. State motor-fuel taxes.— Record the net

amount of State revenue that was raised from State

taxation of motor-fuels. Net motor-fuel revenues are

The revenue distributions represented in this item should

correspond to information provided on State revenue

Fees, How They Are Collected and Distributed or to

current statutes where they supplant those in

table MF-106. 

The detail for this item assists in reconciling forms

FHWA-556 and FHWA-531. If form FHWA-556 is not

available at the time form FHWA-531 is prepared, then

the detail for this item should be left blank. When form

FHWA-556 is provided, the State should also prepare a

reconciliation between item 8., FHWA-556 and this item. 

Item B.1.a. Total Distributed.— Enter the amount of net

Item B.1.b. Adjustments due to Timing

Differences.— Report any differences between form

FHWA-531 and form FHWA-556 attributable to timing

differences. Timing differences may be caused by

differences in reporting years used for the two reports, or

because of delays between the time funds are reported as

distributed in collecting agency records, and the time

funds are reported as received in highway agency

records. 

Before any amount is entered in this item, it should be

verified that timing differences are the reason for

differences between the reports, and that differences in

definition are not a factor. Forms FHWA-531 and

FHWA-556 should be prepared using the same

definitions of motor-fuel taxes. 

 

Item B.1.c. Less Collection costs not shown on

FHWA-556.— Enter costs incurred in the collection of

motor-fuel taxes that were not deducted on form

FHWA-556, item 4. Typically, deductions from motorfuel tax revenues for collection expenses and

administrative costs made by the collecting agency prior

to the funds being distributed should be reported on form
8-6

FHWA-556. If the collection expenses are paid after the available at the time form FHWA-531 is prepared then

distribution of motor-fuel tax revenues and are not the detail for this item should be left blank. When form

reported on form FHWA-556, they should be reported in FHWA-566 is provided, the State should also prepare a

this item. reconciliation between item 8., FHWA-566 and this item. 

Item B.1.d. and B.1.e. Less Other (Specify).— Enter any

other amounts distributed on form FHWA-556, item 8

that are not fully accounted for on forms FHWA-531 and

FHWA-532. Specify the agency, activity, or purpose of

the distribution in the space provided or in a footnote. 

All distributions reported in item 8 of form FHWA-556

should be fully accounted for on forms FHWA-531 and

FHWA-532. If the State excludes some nonhighway

distributions of motor-fuel tax revenue from form

FHWA-532, then the excluded amounts should be

reported in this item, and identified separately. For

example, if form FHWA-556, item B.8. includes

distributions to a School Fund but the State prefers not to

account for these expenditures on form FHWA-532,

item A.13., these amounts should be reported as a

deduction in this item and identified as a distribution to

the School Fund. If multiple nonhighway funds or

accounts are excluded, then each should be listed

separately in this item or in a note. 

Item B.1.f. Net Income.— Enter the sum of items B.1.a

through B.1.e. This amount should equal the total shown

for item B.1. on page 2. 

Item B.2. State motor-vehicle, driver license, and motor differences between the reports, and that differences in

carrier taxes and fees— Record the net amount of State

revenue that was raised from State taxation of motorvehicles, drivers, and motor-carriers. These net revenues

are directly related to State taxation imposed on the

ownership and operation of motor-vehicles for highway

purposes through motor-vehicle registration fees, dealer

licenses, driver licenses, certificates of title, gross receipts

taxes, distance taxes, weight/capacity taxes, permit fees,

fines and penalties for infractions of the motor-vehicle

registration laws, and miscellaneous receipts of the State

motor-vehicle agency. The information reported in this

item should be consistent with that reported on form

FHWA-566. 

The revenue distributions reported in this item should

correspond to information provided on State revenue

distributions in table MV-106 in Highway Taxes and

Fees, How They Are Collected and Distributed or to

current statutes where they supplant those in table

MV-106. 

The detail for this item assists in reconciling forms

FHWA-566 and FHWA-531. If form FHWA-566 is not

The reconciliation can be either a revised page 1 of form

FHWA-531 or a supplemental statement containing

information similar to detail items B.2.a. through B.2.f.

Item B.2.a. Total Distributed.— Enter the amount of net

motor vehicle revenue that was distributed by the

collecting agency. This should correspond to the amount

reported on form FHWA-566, item 8. 

If form FHWA-566 is prepared for a different reporting

year than form FHWA-531, the amount reported on form

FHWA-566, item 8 is still reported in this item. 

Compensating adjustments are reported in item B.2.b. 

Item B.2.b. Adjustments due to Timing

Differences.— Enter any differences between forms

FHWA-531 and FHWA-566 attributable to timing

differences. Timing differences may be caused by

differences in reporting years used for the two reports, or

because of delays between the time funds are reported as

distributed in collecting agency records, and the time

funds are reported as received in highway agency

records. 

Before any amount is entered in this item, it should be

verified that timing differences are the true reason for

definition are not a factor. Forms FHWA-531 and

FHWA-566 should be prepared using the same

definitions of motor-vehicle, driver license, and motorcarrier taxes, fees, and revenues. 

Item B.2.c. Less Collection costs not shown on form

FHWA-566.— Enter costs incurred in the collection of

motor-vehicle, driver license, and motor-carrier taxes

and fees that were not deducted on form FHWA-566,

items 2 or 4. Deductions for collection expenses and

administrative costs made by the collecting agency prior

to the revenue distribution, should be reported on form

FHWA-556. Collection costs paid after the distribution

of motor-vehicle, driver license, and motor-carrier tax

revenues and not reported on form FHWA-566 should be

reported in this item.

 

Item B.2.d.-B.2.e. Less Other (Specify).— Enter any

other amounts distributed on form FHWA-566, item 8

that are not fully accounted for on forms FHWA-531 and

FHWA-532. Specify the agency, activity, or purpose of

the distribution in the space provided or in a footnote. 
8-7

All distributions reported on FHWA-566, item 8, should specific highway funds receiving dedicated highway-user

be fully accounted for on forms FHWA-531 and tax revenue. Instead, all State taxes and fees are

FHWA-532. If the State excludes some nonhighway deposited into the State general fund and lose their

distributions of revenues from motor-vehicle, driver identities. 

license, and motor-carrier taxes and fees from form

FHWA-532, the excluded amounts should be reported in

this item, and identified separately. For example, if form

FHWA-566, item B.8. includes distributions to a School

Fund but the State prefers not to account for these

expenditures on form FHWA-532, item A.13., then these

amounts should be reported as a deduction in this item

and identified as distributed to the School Fund. If

multiple nonhighway funds or accounts are excluded, then

each should be listed separately in this item or in a note. 

Item B.2.f. Net Income.— Enter the sum of items B.2.a.

through B.2.e. This amount should equal the total shown

for item B.2. on page 2. 

Item B.3. Appropriations from State general funds.—

Enter the net revenues that were received from

appropriations for all highway and mass transit activities

from State general funds. The purpose of the

appropriations should be identified in the detail section on Collected and Distributed should be used as a guide to

page 1. the major taxes and fees to be accounted for as other

Although most of a State’s funding for transportation transferred to local governments for highways should be

programs is through dedicated highway and mass transit reported in this item, even if the funds do not pass

accounts and trust funds, some highway and mass transit through the State DOT.

related functions may be funded by the State General

Fund. Some non-DOT agencies involved in highway

activities are not funded from a State highway account or

trust fund. For example, appropriations made to State

agencies other than the State DOT for road work on roads

that are not on the designated State or local system. State

park, forest, and institutional roads are examples of the

types of roads that may be funded by general fund

appropriations. The highway law enforcement and safety

activities of the State police or other State highway safety

agencies are further examples of activities that could be

funded from the State general fund. Also, the State

general fund may support debt service on State

obligations that were issued for highway or mass transit

purposes. 

If another State agency provides funds to a State DOT for

road work, then the revenue should be reported according

to the ultimate source of the other agency’s funding. 

Frequently, the State general fund is the source of funds

for the other State agency. 

In States that operate predominately through the general

fund, all highway appropriations should be recorded in

this item. Generally, the "one-fund" States do not have

Item B.4. Other State taxes or fees.— Enter the amount

of other State taxes or fees that were dedicated and used

for highway and mass transit purposes. Examples of tax

revenues reported in this item include: sales and use

taxes, oil royalties, severance taxes, corporate income

taxes, specific ownership taxes, traffic impact fees,

benefit assessments, etc. Only the proceeds of these and

other taxes and fees that are legislatively allocated or

dedicated for highways and mass transit should be

recorded in this item. The net revenues for highways

from special assessment or taxing districts should appear

in this item. The tax source should be identified in the

supporting schedule on page 1. The other taxes or fees

that are reported in this item are not classified as

highway-user revenues and are not included in items B.1.

or B.2. on form FHWA-531. 

Table S-106 in Highway Taxes and Fees, How They Are

State taxes for highways. All other State taxes or fees

Item B.5. Funds from toll facilities.— Enter all funds

transferred from toll facilities to nontoll State accounts

for State highways, mass transit, and other activities. Do

not include reimbursements for road work on State toll

facilities performed by the State DOT. 

State DOT expenditures on toll facilities should be

included in the toll facility reports, not on forms

FHWA-531 and FHWA-532. Reimbursed expenditures

are considered as expenditures of the toll facility. If the

toll facility report submitted by the State excludes work

performed on its behalf by the State DOT, then the State

should submit a supplementary statement showing these

amounts. 

Item B.6. Funds from Federal Highway

Administration.— Record in this item the total amount of

funds received by the State during the year from the

FHWA. The funds should be recorded on the basis of

actual payments (checks received) and not on the basis of

obligations, earnings, or vouchers submitted but not paid. 

Many States maintain separate funds for Federal-county,

Federal-State-county, or Federal-city programs. In these
8-8

cases, Federal payments for projects on roads and streets

that are under local jurisdiction should be identified and

recorded in appropriate fund columns on page 2. 

However, when no separate account or fund has been

established, it is still desirable to identify and segregate

the Federal, State, and local funds for work on roads that

are under local jurisdiction in separate columns. These

income items can then be related to the direct State

expenditures that are entered in item A.9. or the State

transfers in item A.10. on form FHWA-532. If sufficient

columns for these entries are not available, the

transactions should be reported in a supplemental

statement or in a note.

The Transportation Infrastructure Finance and agencies other than the State DOT or were paid in the

Innovation Act of 1998 (TIFIA) provides Federal credit

assistance to major transportation investment projects of

critical national importance. Federal credit assistance Item B.7.a. Federal Transit Administration-highway

takes the form of secured loans, loan guarantees, and

standby lines of credit. Amounts received under this highway projects. 

program should be identified in a note that also indicates

how the funds were used.

Federal funds used to capitalize a State Infrastructure

Bank (SIB) or infrastructure revolving fund should be

identified in a note. The receipt and expenditure of those

funds should also be shown in a separate column on

forms FHWA-531 and FHWA-532.

Federal funds used on a toll road project should be

identified in a note that indicates the toll facility and the

use of the Federal funds.

Item B.6.a. Highway purpose.— Enter the amount of

FHWA funds that were expended for highway purposes.

Item B.6.b. Transit purpose.— Enter the amount of

FHWA funds that were expended for mass transit

purposes. FHWA’s Surface Transportation Program

(STP) or Congestion Mitigation and Air Quality

Improvement (CMAQ) funds transferred to transit

projects administered by the FTA should be reported in

this item.

Item B.6.c. Total.— Enter the sum of items B.6.a. and

B.6.b.

Item B.7. Funds from other Federal agencies.— Record percentage supplied by the State and on current year

in this item all funds for highways and mass transit payment data supplied by the Forest Service.

received from Federal agencies other than the FHWA. 

The agencies and amounts should be identified in the

supporting schedule on page 1. Table F-106 in Highway

Taxes and Fees, How They Are Collected and State for highway and mass transit purposes. Identify the

Distributed should be used as a guide to highway and

road assistance programs of other Federal agencies. 

Sometimes, one Federal agency will administer funds

provided by another Federal agency. To the extent

possible, the amounts should be identified as payments

from the source agency, not the administering agency. 

For example, Federal Transit Administration (FTA)

funds administered by FHWA should be identified as

payments from FTA to the State. 

All Federal funds paid to, shared with, or expended by

the State for road purposes should be reported in this

item including Federal funds that were paid to State

final instance to local governments. 

purpose.— Enter all FTA funds that were expended for

Item B.7.b. Federal Transit Administration-transit

purpose.— Enter all FTA funds that were expended by

the State for mass transit projects. 

Item B.7.c. National Highway Traffic Safety

Administration.— Exclude FHWA funds administered by

NHTSA under provisions of Title 23 sections 402, 403,

405, 406, 407, 408, 410, and 411. Include all other

funds administered by NHTSA. 

Item B.7.d. Forest Service.— Enter all funds received

from the U. S. Forest Service that have been or will be

used for highways. 

The National Forest Fund transfers a portion of timber

sale receipts to States for roads and schools in counties

where forests are situated. Often, these funds are passed

through to county governments by State agencies other

than the State DOT. This may make it difficult for the

State DOT to determine the actual amount used for roads

during the current year. 

The State may elect to report this information in a

footnote indicating the approximate percentage of its

Forest Service receipts that have been used for roads in

the past. FHWA will estimate this item based on the

Items B.7.e. through B.7.o. Other Federal

agencies.— Enter all other Federal funds received by the
8-9

amount and Federal agency in the appropriate item on The net proceeds of State bonds issued by the State for

page 1. local roads and streets, and the financial transactions

Item B.7.p. Total.— Enter the sum of items B.7.a. through

B.7.o.

Item B.8. Funds from local governments.— Enter the

funds provided by local governments for expenditure by

the State on highways or mass transit. If there were

contributions from other rural units, such as county road

improvement districts, this fact should be given in a note.

Funds from local governments that were advanced to the

State prior to expenditure or as a loan should also be

recorded in this item. Unexpended amounts should be

included in the balances. The repayment of advances by

the State should be shown in item A.10., FHWA-532. 

However, loan advances and repayments made in the

same year should be omitted. The proceeds of local

bonds on which the State is responsible for meeting the

interest and/or principal payments should be reported in

item B.9. instead of in this item.

In some cases, a portion of the local governments' share

of State highway-user revenues is not paid directly to

local governments, but is retained by the State and used to

match Federal-aid funds for road projects for local

governments, to reimburse the State for work performed

at the request of local governments, or for other purposes.

Since the funds were never actually transferred by the

State to the local government, these funds should be

treated as if they were generated and expended solely by

the State. In such cases, no transfer of funds would be

shown in this items, or in item A-10 on FHWA-532. 

When the funds transferred from local governments are

earmarked for a specific purpose, the amounts should be

identified in an appropriate column that shows the linkage

between the local funds and their object of expenditure.

When local governments provide at least part of the

matching funds for State-administered Federal-aid

projects, any funds for these projects should be recorded

in this item, whether the State expenditures occur on

State jurisdiction roads, or local jurisdiction roads. 

Item B.9. Proceeds of sale of bonds.— Enter the net

proceeds of bonds issued for the construction of highways

and public mass transit. The net proceeds of obligations

issued for the purpose of refunding existing debt should

also be included in this item. The amount reported should

agree with FHWA-541, item 9.A.(7). Any differences

should be explained in a footnote.

associated with local bonds assumed by the State should

be recorded in a separate column.

The proceeds of the issue of State highway notes or other

evidences of indebtedness that will be redeemed within

2 years should not be recorded on form FHWA-531. 

Instead, the amount of the temporary indebtedness

outstanding at the beginning and the end of the year

should be deducted from the beginning of year balances

in item A., FHWA-531 and the end of year balances in

item C. on form FHWA-532. The issuance of warrants

(if any) for payments on construction or maintenance

work should be handled in the same manner, with the

transactions recorded on form FHWA-532 as

expenditures during the period in which the warrants

were issued. The cost will then be shown for the year in

which it was incurred and the necessity for recording the

retirement of the warrants will be avoided.

Item B.10. Miscellaneous State highway income.—

Record in this item those types of revenue that cannot be

specifically classified under another item listed on form

FHWA-531. Identify major items in the detail section on

page 1, or in a footnote. 

Transfers from other State agencies to the State DOT

should not be included in this item. Instead, they should

be recorded according to the original source of the

revenue provided the other agency. In many cases, the

source would be the State general fund, so the amounts

transferred by other State agencies would be reported in

item B.3.,FHWA-531. 

Revenue from transactions that are in effect reductions of

expenditures should not appear as income on form

FHWA-531 (or as a balance adjustment), but should be

deducted from the appropriate expenditure item or items

on form FHWA-532. For example, proceeds from the

sale of right-of-way would be excluded from this item

and would instead be deducted from right-of-way costs

reported in item A.1.a., FHWA-532. Similarly,

proceeds from the sale of maps or plans would be

deducted from the gross cost of creating these items,

which would be reported in item A.4.a., FHWA-532. 

Item B.10.a. Investment income, bond sinking funds.—

Enter the investment income of sinking fund accounts or

other accounts specifically established for debt service

transactions. Investment income includes the interest on

deposits and investments, plus the net profit or loss from

exchange of cash and investments. This information is

needed for States that have established reserves for the
8-10

retirement of outstanding debt or for the payment of The following procedures should be followed in

interest and retirement charges on bonds. recording data for the items on page 2 and in providing

Item B.10.b. Interest on investments, other accounts.—

Enter all revenues from interest on deposits and

investments and investment income from the net profit or

loss from the purchase and sale of investments from all

accounts other than bond sinking funds. 

Item B.10.c. Private contributions.— Enter all

contributions from private sources. Private sector

participation in financing highway projects can takes the

form of cash contributions, transfers of real property,

construction of facilities, and services such as

engineering. When the value of donated land, facilities or

services is reported in this item, a like amount should be

added to items A.1., A.7. or A.9. on form FHWA-532 as

appropriate, and should also be identified in a note on

form FHWA-532.

Items B.10.d. through B.10.h.— Identify large items of funds for resurfacing, additions and betterments which

miscellaneous income. If additional room is needed, this should be classified as construction. Such expenditures

information can be provided in a note on page 4. should be shown as a capital outlay in item A.1. instead

Item B.10.i. Total.— Enter the sum of items B.10.a.

through B.10.h. Item A.1. Capital outlay on State system.— Record in

Item B.11. Total income.— Enter total State highway

income by adding items B.1. through B.10.

Item C. Interfund transfers, in.— Enter the sum of all

interfund transfers in. In conjunction with item B. on

form FHWA-532, item C. records transfers among the

funds reported, such as from State highway funds to the

sinking fund, or from the construction fund to the

maintenance fund, and so forth. Transfers from State

motor-fuel and motor-vehicle revenues to the State

general fund should not be entered here, but should be

shown as expenditures in item A.13.a. on form

FHWA-532. Similarly, transfers from the State general

fund to highway agency funds should be shown in item

B.3. on form FHWA-531.

The sum of the entries in item C. on form FHWA-531

must equal the sum of the entries in item B. on form

FHWA-532. If not, the reason for any difference should

be explained in a note.

Item D. Total funds to be accounted for.— Enter the sum

of items A.3., B.11. and C. The entries in item D. must

equal the entries in item D. on form FHWA-532.

INSTRUCTIONS FOR FORM FHWA-532

the detail for the supporting schedule on page 1 (the

items on page 1 are numbered to correspond to the items

on page 2).

As a rule, the classification of highway construction and

maintenance expenditures should be consistent with the

criteria provided in the American Association of State

Highway and Transportation Officials publication,

AASHTO Maintenance Manual-1987. Exceptions to the

expected classification of expenditures are provided in

the instructions. Since not all situations can be

anticipated in these instructions, States are encouraged to

use judgment in the classification and recording of

expenditures.

All expenditures should be classified according to

purpose, and not necessarily according to funds. For

example, a number of States expend "maintenance"

of a maintenance expenditure in item A.2.

this item capital outlay for highways, roads and streets

that are part of the State highway system. Capital outlay

includes (1) acquisition of right-of-way, (2) preliminary

and construction engineering, and (3) construction of

roads and structures, and installation of traffic service

facilities. 

The cost of construction materials and supplies and, if

possible, construction machinery and equipment costs,

should be included in the construction expenditures

reported. Administrative costs directly assignable to

specific capital outlay projects should be included here,

but all other administrative costs should be reported in

item A.4. 

Capital outlay for toll facilities should not be included

under this item. See instructions for item A.8. and

Chapter 10 for information on toll facility reporting. 

Mass transit capital expenditures should also be excluded

from item A.1. Capital outlay for mass transit should be

included only in items A.11. and A.12. 

Item A.1.a. Cost of acquiring right-of-way.— Include

the following expenditures: right-of-way administration;

purchase of land, improvements and easements; and the

costs of moving and relocating buildings, businesses, and

persons.
8-11

Item A.1.b. Preliminary and construction engineering.— Include the following expenditures: field

engineering and inspections; surveys, material testing,

and borings; preparation of plans, specifications and

estimates (PS & E); and traffic and related studies.

Item A.1.c. Construction of highways.— Record in this

item all expenditures for construction, relocation,

resurfacing, restoration, rehabilitation and

reconstruction (3R/4R), widening, safety and capacity

improvements, restoration of failed components,

additions and betterments of roads and bridges. Some

aspects of construction are as follows:

! Construction of roads includes: roadway earth

work and grading; drainage and related

protective structures; base and surface or

resurfacing; shoulder and approach surfacing,

including turnouts, interchanges, frontage roads,

climbing lanes and parking areas; utility

relocation; major and minor widening; safety

related improvements; and environmentally

related improvements.

! Construction of structures includes: bridges;

viaducts; grade separation structures, overpasses

and underpasses; vehicular tunnels and

subways; sewer and drainage systems, walls and

roads over dams; and ferries and landings. This

also includes the installation of protective

systems on structures subject to particularly

harsh environments and chemical damage.

! Installation of traffic service facilities includes

the cost of building or installing specialized

facilities and equipment designed to aid, direct,

regulate or control vehicular use of the

highways. For example, weather monitors

installed along an Interstate highway as part of

an Intelligent Transportation System (ITS)

project. (Report costs of inspection, highway

patrol, and vehicle weight facilities in item A.5.)

Further examples of construction expenditures can be

found in the instructions for form FHWA-534 in

Chapter 12. 

Item A.1.d. Total.— Enter the sum of items A.1.a.

through A.1.c.

Item A.2. Maintenance of State system.— Enter all

expenditures classified as maintenance for highways,

roads, and streets that are part of the State highway

system. 

The cost of materials and supplies that are used in

maintenance activities and maintenance equipment costs

should be included in the maintenance expenditures

reported. As with construction expenditures, the

maintenance expenditures reported should include all

administrative and engineering costs directly assignable

to maintenance projects. 

The term maintenance as used on form FHWA-532 is

defined as the function of preserving and keeping the

entire highway, including surface, shoulders, roadsides,

structures, and traffic control devices, as close as

possible to the original condition as designed and

constructed. For improved or reconstructed facilities,

subsequent maintenance work only insures continued

service as redesigned. 

Maintenance on form FHWA-532 also includes

preventive maintenance activities. These activities

extend pavement and bridge service life to at least

achieve the design life of the facility. Preventive

maintenance involves programs that delay or eliminate

the necessity for future resurfacing, restoration,

rehabilitation, and reconstruction of the roads or

structures. 

General maintenance does not include improvements,

additions and betterments, or resurfacing, restoration,

rehabilitation, and reconstruction expenditures (3R/4R)

which should be recorded in item A.1. The purpose of

maintenance is to offset the effects of deterioration from

age, weather, use, damage, failure, and design and

construction faults.

Roadway maintenance includes all expenditures for

routine roadway surface, shoulder, roadside and drainage

operations. Structure maintenance includes expenditures

for repair and maintenance of bridges, tunnels, subways,

overhead grade separations, and other structures,

including substructure, superstructure, stream bed operations, and bridge painting. Highway and structure

maintenance also includes: spot patching and crack

sealing of roadways and bridge decks, the maintenance

and repair of highway utilities and safety devices,

including repair and painting of route markers, signs,

guard rails, fences, signals and highway lighting. 

Maintenance expenditures for toll facilities should not be

included on form FHWA-532. See Chapter 10 for data

reporting requirements for toll facilities.

Item A.3. Highway and traffic services.— Record in this

item operational expenditures for: (1) traffic control

operations and facilities, (2) snow removal and sanding,
8-12

and (3) other miscellaneous traffic operation and service maintenance of State DOT administrative buildings, cost

expenditures. of insuring buildings and structures, and payment of

Item A.3.a. Traffic control operations.— Enter

expenditures for operation of intelligent and other traffic

control and surveillance systems that are designed to

monitor and control traffic by managing vehicle flow on

streets and highways. The purpose of these systems is to

improve transportation performance, safety, fuel

economy, and air quality. These systems include: traffic

signal control; freeway, tunnel and bridge surveillance

and control; electronic message boards; video monitoring;

traffic information radio stations; motorist aid; etc. Also

included is operation of toll-free drawbridges, tunnels and

ferries.

Only the operating costs of traffic control facilities should

be included in this item. The construction of traffic

control facilities is included in item A.1. Maintenance of

these facilities is included in item A.2. 

Item A.3.b. Snow and ice removal.— Enter expenditures

for removal of snow from roadway or roadside, sanding

and chemical applications, and the erection and removal

of snow fences.

Item A.3.c. Other.— Enter expenditures for highway

beautification, junkyard control, control of outdoor

advertising, litter pickup and mowing. Also include

vegetation management, erosion control programs and

programs which monitor highway air quality in

nonattainment areas. Air quality programs should be

identified in a note on page 4. Expenditures for planning

air quality programs should be reported only in

item A.4.b.

Item A.3.d. Total.— Enter the sum of items A.3.a.

through A.3.c.

Item A.4. General administration and miscellaneous

expenditures for State highways.— Record in this item

general and miscellaneous expenditures that are not

readily distributable to specific construction or

maintenance projects. Expenses associated with the

administration of State mass transit programs are reported

in items A.11.c. or A.12.c. 

Item A.4.a. General administration and engineering.—

Enter all general expenses of administration, engineering,

and miscellaneous expenditures not otherwise classified. 

Examples include executive salaries and expenses of the

State DOT, general engineering and office expenses,

operation of department-wide or agency-wide support

functions, payment to other State offices for services

rendered on behalf of the State DOT, construction and

damage claims and judgments arising from litigation. 

Because of varying accounting practices, the reporting of

general administrative and engineering expenditures is

not uniform among the States. In preparing form

FHWA-532, all costs directly attributable to specific

projects should be assigned to the appropriate

classification in items A.1., A.2., A.7. or A.9. to the

extent possible, and eliminated from item A.4.a. For

FHWA purposes, expenditures not specifically

chargeable to projects or functions should be reported in

item A.4. The salaries, wages, related payroll expenses,

and fringe benefit costs incurred for the time an

employee is actively involved in a function or activity

should govern the allocation of those costs to capital

outlay, maintenance, administration, etc. These expenses

include social security, retirement, insurance premiums,

and other payroll benefits. 

Administrative expenses such as those for general

administration, supervision, and State DOT overhead for

management, supervision, and control of the State DOT

as an operational State highway agency should not be

allocated to capital outlay and maintenance. Such

administrative costs would include directors, department

heads, other transportation and management officials,

legal departments, accounting sections, budget

administrations, personnel functions, procurement

operations, etc.

The collection and administrative costs associated with

motor-fuel and motor-vehicle revenue collections should

not be included in item A.4. These amounts should be

deducted on forms FHWA-556 and FHWA-566, or in

items B.1.c. and B.2.c., on page 1 of form FHWA-531.

Many States have established secondary roads divisions

for administering State-local programs. To the extent

that expenditures of these divisions are restricted to

programs for improvement of roads off the State system,

the costs of administration should be reported in items

A.7.c. and A.9.c. rather than in item A.4.a.

Item A.4.b. Highway planning and research.— Enter all

expenditures for highway planning, research and

investigation, including laboratory and field research in

road and bridge materials and design, traffic research,

technical and financial studies, and similar investigations

by the State highway planning division or equivalent. 

Include expenditures for all activities funded under the

State Planning and Research Program with SPR funds

from FHWA.
8-13

Item A.4.c. Total.— Enter the sum of items A.4.a. and

A.4.b.

Item A.5. Highway law enforcement and safety.—

Record in this item highway law enforcement and safety

expenditures by the State DOT, State police, department

of public safety, traffic safety commission, and other

agencies. These expenditures are classified as: (1) traffic

supervision and the enforcement of State highway laws

and ordinances; (2) highway, traffic, and driver safety

programs; (3) motor-vehicle inspection programs; and

(4) enforcement of vehicle size and weight limitations. 

To avoid the possibility of duplication, amounts reported

in item 10 on form FHWA-566 should not be included in

this item. (See the instructions for form FHWA-566 in

Chapter 6.) Item 10 on form FHWA-566 should capture

any highway law enforcement and safety activities

performed by State agencies involved in the collection of

motor-vehicle taxes and fees. All other State agencies

highway law enforcement and highway safety activities

should be reported in this item. 

The highway law enforcement activities of other State

agencies funded independently of the State DOT should Item A.5.c. Vehicle inspection.— Enter the expenses of

be reported in a separate column on forms FHWA-531 inspecting vehicles, operating inspection stations, and

and FHWA-532. If the State prefers, it may report the other activities related to periodic motor-vehicle

activities of these other agencies on a separate inspection programs, including motor-vehicle emissions

supplement, instead. Any supplement provided should inspection and motor-carrier safety inspection.

use the same classification of expenditures as shown in

item A.5. The supplement should also show the revenue

source that funded the highway law enforcement and

safety expenditures. Frequently, other State agencies

such as the State highway patrol, State police, or 

department of public safety, receive their funding from

the State general fund. installing and operating ports-of-entry should be included

Highway safety expenditures should include, to the extent If the ports are used also as information centers,

possible, the Federal safety programs such as the those quarantine stations, tax collection points, and so forth, the

provided by sections 402, 403, 405, 406, 407, 408, 410, costs charged to highway funds should be distributed to

and 411 of Title 23 of the United States Code conducted the other activities as appropriate. Include vehicle

by the National Highway Traffic Safety Administration weight enforcement facilities eligible for Federal aid

(NHTSA) and the Motor-Carrier Safety Assistance under section 101(a) of Title 23 U.S.C.

Program (MCSAP) which was reauthorized in the

Transportation Equity Act for the 21 Century (TEA-21). st

Highway safety construction expenditures should be

reported in item A.1.c. on form FHWA-532.

Item A.5.a. Traffic supervision.— Enter the expenses of

the State highway patrol or similar agency for providing

traffic supervision and patrolling the highways. Traffic

supervision includes enforcement of traffic laws,

supervision and direction of traffic, accident investigation,

and incidental service functions such as aid to distressed

motorists. It includes salaries, benefits, pensions, and

equipment costs of officers engaged in these activities. 

Costs of criminal investigations and other general

policing activities should not be shown in item A.5. If

they are financed from highway revenues, they should be

reported in item A.13.

Item A.5.b. Highway, traffic, and driver safety.— Enter

all expenses of safety programs and similar activities

relating to the promotion of highway safety and traffic

accident prevention, whether conducted by the State

DOT, the highway patrol, a traffic safety commission, or

other State agency. Examples of highway safety

programs include driver education, motorcycle safety,

driver awareness, drunk or impaired driving, accident

reduction, and emergency medical services for highway

accident victims.

The cost of job safety and accident prevention programs

for State employees and highway safety research

programs should be recorded in item A.4.

Item A.5.d. Vehicle size and weight enforcement.—

Enter expenditures for installing, maintaining, and

operating truck weighing stations and other devices

involved in the enforcement of vehicle equipment and

size and weight limitations on highways. Costs of

here if the ports are primarily used as weighing stations. 

Item A.5.e. Total.— Enter the sum of items A.5.a.

through A.5.d.

Item A.6. Debt service on State obligations for

highways.— Record in this item interest and redemption

payments for bonds that were issued for highway

purposes. Debt service also includes all expenditures

incidental to the sale and retirement of highway debt.
8-14

When transfers are made from the highway fund to a debt purchased on the open market in advance of the time they

service fund or sinking fund outside of the highway fund would normally have been redeemed. Any large

or agency, the payment may be entered in item B. on form differences between the net amount reported in this item,

FHWA-532 as a transfer from the highway fund column and the par amount reported on FHWA-542, column 5,

and recorded in item C. on form FHWA-531 as a receipt should be explained in a note. 

to the debt service fund. Separate columns should be

established on forms FHWA-531 and FHWA-532 to

record all allocations of debt service funds and debt

service expenditures including the transactions of

highway debt sinking funds. The State may report debt

service and sinking fund transactions on optional form

FHWA-543. (See Chapter 9 for instructions on reporting

data for debt service on form FHWA-543.) 

Debt service on obligations not maintained by the

highway agency may also involve revenues not included

in the highway fund. States should include this data in the

separate columns for highway debt on forms FHWA-531

and FHWA-532 or on form FHWA-543.

Payments of interest and redemption charges on State

bonds issued for the construction of local roads and

streets should also be entered in item A.6. and posted in a

separate column established for that purpose or the

details should be given in a note. 

Debt service for toll facilities should be reported

separately from highway debt. Debt service on mass

transit issues is reported in item A.12.d.

Item A.6.a. Paying agents fees, etc.— Enter all debtrelated administrative expenses including the costs of

preparing and issuing bonds, fiduciary fees, and bond

handling charges. 

Item A.6.b. Interest.— Enter interest paid during the year

including accrued interest received on the sale of bonds

or paid on redemptions in advance of maturity. 

Interest paid on short-term notes or warrants, should be

included in this item, even though the proceeds and

redemption of short-term loans that will be redeemed

within 2 years are not reported on forms FHWA-531 and

FHWA-532. (See the discussion presented under

item B.10., FHWA-531.)

Item A.6.c. Retirement by current income.— Enter the

amount of net redemption payments for highway debt,

that were funded by current income, or sinking funds. 

Net redemptions are the amount of funds expended to

retire or redeem outstanding obligations and consist of the

par value of bonds redeemed, as reported on FHWA-542,

column 5, plus any premiums or less any discounts. Such

premiums or discounts may occur if bonds were

Item A.6.d. Retirement by refunding.— Enter the amount

of net redemption payments for highway debt, that were

funded by the proceeds of refunding bonds. Net

redemptions are the amount of funds expended to retire

or redeem outstanding obligations and consist of the par

value of bonds redeemed by refunding issues, as reported

on FHWA-542, column 6, plus any premiums or less any

discounts. In many cases, a premium must be paid to

retire bonds before their maturity. 

Also enter the net amount of outstanding bonds that were

refunded through the deposit of refunding bond proceeds

into escrow accounts that use those proceeds and

investment income to make bond administrative costs,

and all remaining principal and interest payments. 

Item A.7. Expenditures on other State roads not on

State system.— Record in this item all direct expenditures

and allocations made by State agencies for capital outlay,

maintenance, and administration of highways, roads and

bridges that are under State jurisdiction but are not on the

State system. These roads are usually in State parks,

forests, reservations, or institutions. In many States, such

roads are not under the control of the State DOT. Data

for expenditures on these roads and the revenues that

funded them will need to be obtained from the

responsible State agencies. 

If the State DOT is responsible for all State jurisdiction

roads, including those in parks, forests, reservations, and

institutions, then the amounts spent on State roads on and

off the State system may not be separable. In this case,

the State may leave this item blank, and report the

combined amounts in items A.1. through A.4. The State

should provide a note to indicate that they have elected to

report combined amounts. 

 

The general instructions and classification criteria for

items A.1. through A.4. (State highway capital outlay,

maintenance, operations and administration, respectively)

apply as well to items A.7.a. through A.7.c. 

Item A.7.a. Capital outlay.— Enter all State capital

outlay for roads and streets that are under State

jurisdiction but are not on the State system.

Item A.7.b. Maintenance and traffic services.— Enter all

expenditures for State maintenance and for highway and
8-15

traffic services for State roads and streets that are not on supervision. Any expenditures for acquisition of rightthe State system. of-way or for preliminary and construction engineering

Item A.7.c. Administration.— Enter all administrative

costs directly attributable to State work on State roads Item A.9.b. Maintenance and traffic services.— Enter all

and streets that are off the State system. State expenditures for maintenance and highway and

Item A.7.d. Total.— Enter the sum of items A.7.a.

through A.7.c.

Item A.8. Transfers to toll facilities.— Enter all State

subsidies of or payments to toll facilities. State direct

expenditures on State toll facilities should be reported

with the transactions of the toll facility. They should be

included and noted in this item as if they were a subsidy. 

See Chapter 10 for data reporting requirements for toll

facilities. Item A.9.d. Total.— Enter the sum of items A.9.a.

Item A.9. Expenditures by State on locally administered

roads.— This item records all State expenditures for work

either contracted or performed on highways, roads, and

streets that are under the jurisdictional control of local

governments. A separate column on page 2 should be

used on forms FHWA-531 and FHWA-532 to identify the

receipts, expenditures, and balances applicable to direct

State work on local roads and streets. MV-106, S-106, and F-106 in Highway Taxes and Fees,

Federal laws permit the expenditure of Federal-aid

highway funds (and other funds) on roads off the State

systems. Expenditures by the State on such projects

involving Federal funds and local matching funds should

be included in this item. The amount of local matching

funds should be identified in item B.9. on form

FHWA-531. 

The general instructions and classification criteria for

items A.1. through A.4. (State highway capital outlay,

maintenance, highway and traffic services, and

administration, respectively) apply as well to

expenditures reported in items A.9.a. through A.9.c. 

State DOT expenditures for machinery and equipment

used on local road work should be included in this item if

identifiable and separable from other equipment

expenditures.

State capital outlay on local roads and streets as a part of

co-supported projects should be reported in these items. 

State capital outlay on State highways as a part of

co-supported projects should be reported in item A.1.

Item A.9.a. Capital outlay.— Enter all expenditures on FHWA-532 and from item B.9. on form FHWA-531. 

highways, roads and streets that are under local This avoids the duplication of these funds as income and

jurisdiction made directly by the State or under State expenditures for two levels of government.

should be identified in a note. 

traffic services on local roads and streets. Expenditures

for highway and traffic services should be identified in a

note.

Item A.9.c. Administration.— Enter all expenditures for

State administrative expenses that can be specifically

allocated to managing State work on local roads and

streets or assisting local governments in their road

programs.

through A.9.c.

Item A.10. Grants-in-aid to local governments.— Enter

all funds paid as grants-in-aid or otherwise transferred to

local governments or local road improvement districts. 

Payments to counties and other local units should

correspond to information provided on State-to-local

revenue distributions for each State in tables MF-106,

How They Are Collected and Distributed or to current

statutes where they supplant those in the tables.

If the revenue sources for State grants to local

governments are separately identified from those for

direct State expenditures, separate columns on forms

FHWA-531 and FHWA-532 should be used to account

for these transactions. This would clearly show the

expenditures and the specific revenues and revenue

sources that funded them. 

Federal-aid highway funds and other Federal funds

passed through to local governments should be included

in this item, and should be separately identified. These

funds should be identified either in a separate column on

the forms FHWA-531 and FHWA-532, or in a note

showing the amount of Federal funds transferred and the

Federal agency. 

The statutory allocations of highway-user revenues to

local governments should be reported in this item. 

However, when the State withholds a portion of the funds

as reimbursement for prior expenditures or advances, or

as local matching funds for State-local projects, the

amounts withheld should be excluded from form
8-16

Do not include in this item payments to counties or other engineering, park-and-ride and other parking facilities,

local units under contract to the State for maintenance or transit malls, transfer facilities, intermodal terminals,

construction of State highways. These payments are shelters, bus maintenance facilities, vehicle support

considered as State expenditures and should be shown in equipment, transit traffic management or operational

item A.1. or item A.2. Such expenditures should not be support systems, rolling stock, and the replacement,

included on form FHWA-536. rehabilitation and remanufacture of equipment and

Payments on obligations assumed as reimbursement for expenditures bus lanes and for the purchase of

local roads added to the State system are recorded in specialized vehicles for the transportation of elderly or

item A.6. on form FHWA-532. handicapped individuals.

Any amounts reported in this item should be included in

the State and Federal receipts shown in items I.C. and

I.D. on form FHWA-536.

Item A.11. Expenditures by State for mass transit vehicle leases, maintenance, driver salaries, fuel, tires,

purposes.— Record all direct expenditures by the State

for mass transit purposes. The amounts reported should

be limited to State-wide mass transit programs and should Item A.11.c. Administration.— Enter the expenditures

not include the direct expenditures of State-owned mass associated with program administration, technical

transit operators. State-wide programs may include such studies, planning and research, and demonstration of

activities as car pools, van pools, specialized transit for mass transit programs and project.

the elderly or handicapped, park-and-ride lots and other

mass transit programs not tied to specific mass transit

operators. 

Information on the receipts and expenditures of mass

transit operators are reported through the Federal Transit

Administration's (FTA) Section 15 program. To avoid

duplication, information for State-owned mass transit

operators that are reported to FTA should be omitted

from forms FHWA-531 and FHWA-532. This item is

intended to capture only the State’s mass transit activities

that are not included in FTA’s Section 15 reports. 

For the purpose of providing balanced statements, a

separate column or columns on page 2 of forms

FHWA-531 and FHWA-532 should be used to record

income (including Federal aid and other Federal funds),

expenditures, and fund balances for direct mass transit

activities.

Federal funding for mass transit activities is primarily

from the Federal Transit Administration. A number of

other Federal agencies and programs also support mass

transit activities. The funds provided by other Federal

agencies should be identified and reported in item B.7.,

FHWA-531. Federal Highway Administration funds used

for mass transit should be identified in item B.6.b. on

FHWA-531. 

Item A.11.a. Capital outlay.— Enter direct capital

expenditures of the State for mass transit. This includes

expenditures for the following: transit right-of-way and

facilities. For example, this item records State

Item A.11.b. Operations.— Enter direct State payments

for the operational expenses of mass transit programs. 

For example, this item records State expenditures for

operating State sponsored van pool services, including

insurance, and marketing.

Item A.11.d. Debt service.— Enter the interest and

redemption payments for State obligations issued for

mass transit purposes. This also includes all

expenditures incidental to the sale and retirement of the

bonds. 

Item A.11.e. Total.— Enter the sum of items A.11.a.

through A.11.d.

Item A.12. Grants-in-aid for mass transit

purposes— Record all funds paid as grants-in-aid,

subsidies, or otherwise transferred to State, local and

private mass transit operators. Also include amounts

transferred to local governments or regional authorities

for mass transit purposes. 

The transfers to mass transit operators reported in this

item should be consistent with information on State

funding of mass transit as reported by mass transit

operators through the Federal Transit Administration’s

Section 15 program. If any funds were transferred to

local governments, regional authorities, or other

governmental entities that do not provide information to

the Federal Transit Administration, that amount should

be reported in a note. 

For the purpose of providing balanced statements, a

separate column or columns on page 2 of forms

FHWA-531 and FHWA-532 should be used to record

income, expenditures, and fund balances for mass transit

grants-in-aid. 
8-17

Federal funds passed through the State to mass transit ! Diversions from highway balances reported in

operators, or local governments for mass transit purposes item A., FHWA-531 to nontransportation

should be included in this item, and identified separately. purposes.

Amounts transferred by Federal agencies directly to mass

transit operators should be omitted. ! Payments for services that are not related to

Item A.12.a. Grants-in-aid for capital assistance.—

Enter State capital assistance payments (including

Federal funds) to local governments, regional planning

organizations, and State, local, or private mass transit

operators. Capital assistance payments can be for the

purchase of buses, rail cars or other capital activities

described in item A.11.a..

Item A.12.b. Grants-in-aid for operations.— Enter State

operating assistance payments (including Federal funds)

to local governments, regional planning organizations,

and State, local, or private mass transit operators. 

Operating assistance payments can be for reduced fares

for elderly or handicapped or for operating activities

described in item A.11.b.

Item A.12.c. Grants-in-aid for administration.— Enter

State mass transit planning and research payments

(including Federal funds) to local governments, regional

planning organizations, and State, local, or private mass

transit operators.

Item A.12.e. Total.— Enter the sum of items A.12.a.

through A.12.c.

Item A.13. Expenditures for nontransportation

purposes.— Record in this item all expenditures for

purposes not related to highways or mass transit, that

were funded by revenues reported on form FHWA-531.

The types of expenditures to be entered under this

heading include:

! Dedications of State motor-fuel, motor-vehicle,

or motor-carrier revenue from items B.1. and

B.2., FHWA-531 for State general purposes, or

for specific nonhighway non-mass transit

purposes. 

! Expenditures for other modes of transportation

made from a consolidated State DOT fund, if all

revenues for that fund were included on form

FHWA-531. If revenues used for aviation,

marine, and freight rail modes are separately

identifiable from those used for highways, then Item A.14. Total expenditures.— Enter total State

the revenue and expenditures for these highway expenditures by adding items A.1. through

nonhighway modes should be excluded from A.13. 

forms FHWA-531 and FHWA-532. 

highways or mass transit. This would include

statewide prorated costs assigned to a State

DOT, a State highway revenue fund, or a State

Transportation Trust Fund for the support of the

State legislature, other State agencies, or

general government services. Any payments

made to other State agencies for specific

administrative services related to the operation

of the highway program would be reported in

item A.4.a., FHWA-532. 

The collection and administrative costs associated with

motor-fuel and motor-vehicle collections should not be

included in this item. These amounts should either be

deducted on forms FHWA-556 and FHWA-556, or

deducted in items B.1.c. or B.2.c., FHWA-531. 

Note that some State definitions of certain categories of

highway expenditures are broader than those of form

FHWA-532. In some instances, this will result in the

need to report an amount in this item that the State

normally treats as a highway expenditure in its own

records. 

Items A.13.a. Transfers to State general fund for State

general purposes.— Enter any amounts transferred to the

State general fund for State general purposes. Include

motor-fuel and motor-vehicle revenues dedicated to the

State general fund. Also include any surplus revenue that

reverts to the general fund. 

Amounts that are transferred to the State general fund for

a specific nonhighway purpose should be excluded from

this item, and reported in Items A.13.b through A.13.f.

Items A.13.b. through A.13.f. Expenditures for

nontransportation purposes.— Enter and specify the

amount, funding source, and purpose of other

nontransportation expenditures that are reported in this

item.

Item A.13.g. Total.— Enter the sum of items A.13.a

through A.13.f.
8-18

Item B. Interfund transfers, out.— This item is used in

conjunction with item C. on form FHWA-531, and

records the transfers among the funds reported on the two

forms. Transfers for nonhighway purposes or to the State

general fund should be recorded in item A.13. The sum

of the entries in item B. must equal the sum of the entries

in item C. on form FHWA-531. Any differences should

be explained in a note.

Item C. Unexpended balances at end of year.— Enter

the balances remaining at the end of the reporting year for

all funds identified on forms FHWA-531 and

FHWA-532. The discussion of balances presented in

connection with item A. on form FHWA-531, is

applicable in general to item C. on form FHWA-532.

Item D. Total funds accounted for.— Enter the sum of

items A.14., B. and C. The entries in item D. on form

FHWA-532 must equal the entries in item D. on form

FHWA-531.
9-1

CHAPTER 9

REPORTS IDENTIFYING STATE TRANSPORTATION DEBT

This chapter provides instructions on preparing forms States that have no transportation debt do not need to

that focus on and provide additional information on State submit forms FHWA-541 or FHWA-542. However, the

transportation debt activities. These forms are: fact that no State obligations for highways or mass transit

FHWA-541 State Transportation Obligations Issued

During Year and Allotment of Proceeds.— Provides

specific details of the sale of State transportation bonds

and the use of the bond proceeds.

FHWA-542 Status of State Transportation

Debt.— Provides information on the par value amount

of outstanding State transportation debt.

FHWA-543 (Optional) State Transportation Sinking

Fund and Debt Service Transactions.— Provides

balanced calendar or fiscal year statements of sinking

funds, or interest and redemption funds, that are

maintained to service State obligations for highways or

mass transportation. This form may be used as an

alternative to identifying the debt service transactions

in separate columns on forms FHWA-531 and

FHWA-532.

IMPORTANT GENERAL CONSIDERATIONS

These forms supplement the annual State highway

finance forms FHWA-531 and FHWA-532, and should

be coordinated to cover the same calendar or fiscal year. 

They provide information on the amount and nature of

annual bond financing by the States for highways and

mass transit, and on the change in debt during the year. 

Debt service payments for bond interest, redemption,

allied costs, and the associated revenue may be reported

on forms FHWA-531 and FHWA-532 (see Chapter 8 for

instructions) or on optional form FHWA-543. 

In preparing the bond reports, the State should take care

to ensure that these reports are in agreement with forms

FHWA-531 and FHWA-532. For instance, the income

from bond sales reported on form FHWA-531 should

agree with the amounts reported on form FHWA-541 as

allotments or transfers of net proceeds for highway and

mass transit purposes. Debt service payments reported

on form FHWA-532 should be consistent with debt

service reported on the FHWA-543. A reconciliation

should be provided if information between these forms

differ.

were issued or are outstanding should be noted on forms

FHWA-531 and FHWA-532. 

The Chapter 8 instructions for forms FHWA-531 and

FHWA-532 indicate that transactions relating to the

refunding of obligations should be included and

specifically noted. Refunding involves the replacement

of one bond issue by another. Outstanding bonds are

retired through refunding in one of two ways. In one

method, a call notice is issued to immediately redeem the

outstanding bonds. In another method, refunding bond

proceeds are escrowed and invested to provide sufficient

monies to make all remaining interest payments on the

outstanding bonds and to retire them at their stated

maturities. By either method, a refunded issue is

assumed to have been retired during the current time

period. Complete details of all refunding transactions

should be given on the bond reports.

All obligations issued for a term of two or more years

should be reported. Obligations for shorter terms should

not be reported unless they are part of a regular bond

issue, such as serial bonds for which the maturities begin

the first year after issue. 

Ordinary outstanding warrants and claims should not be

reported as State transportation obligations, but interest

on stamped warrants or similar obligations should be

recorded as debt service payments on form FHWA-532

or on optional form FHWA-543. When warrants, claims,

or other short-term notes are funded, the obligations that

replace them should be reported if they have been issued

for a term of two or more years.

For zero-coupon or capital appreciation bonds, the par

value of the bond reported on forms FHWA-541,

FHWA-542 and FHWA-543 should be the amount that

the State will pay at maturity to retire the bonds. Zero

coupon bonds pay no direct interest. Instead, they

provide their return to investors by being sold at a large

discount. The interest rate on the bonds is implied by the

size of the discount and the term of the bond. Since

forms FHWA-532 and FHWA-543 are prepared on a

cash basis, rather than on an accrual basis, no interest

expenditures are shown for a zero-coupon bond. The full

amount of debt service on a zero-coupon bond will
9-2

appear as a redemption expenditure. Therefore, the full computations than using a separate percentage for each

amount that the State will have to pay to retire the bonds bond issue. 

at maturity should be carried on the FHWA-542 report as

outstanding transportation debt. In multimodal issues with highway and other

Bonds should be classified according to (1) the purpose allocations, i.e., airports, railroad, and marine, should be

of issue (such as highway, mass transit or refunding) and

(2) the type of security, as defined below:

! General obligation bonds.— Although interest considered as highway or mass transit issues and are

and redemption can be paid from specified usually not reported on form FHWA-541. For example,

revenues or State general revenues, these bonds an airport bond that is for the construction of an airport

are backed by the full faith and credit of the tower and hangers should not be reported on form

State. Occasionally, the State issues bonds to FHWA-541.

finance the construction of toll facilities. When

the State guarantees these bonds, they should be When an airport, railroad, or marine bond issue funds a

included with general obligation issues. highway or mass transit project, it should be reported on

! Limited obligation bonds.— Also called

revenue bonds, these bonds are usually secured

only by the revenue from specific taxes and

fees. For toll projects, the security may not be

restricted to the revenue earned by the project. 

However, they are still classified as limited

obligation bonds unless backed by the full faith

and credit of the State.

! Toll revenue bonds.— These are bonds,

generally issued by the separate State

commissions or authorities responsible for the

facilities, that are secured solely by the earnings

of the facilities.

! Reimbursement obligations.— These are

obligations to reimburse local governments for

the cost of local roads taken into the State

system. Separate identification of these

obligations is preferable because of the

circumstances under which they are incurred.

Some States have issued bonds to provide funds for

multimodal capital projects rather than just for highway

projects. Since forms FHWA-531 and FHWA-532

include the financial transactions of State involvement in

mass transit, bond transactions for such activities should

be included on the bond reports. If specific allocations

between highways and mass transit projects have not

been made, estimates will suffice. These percentages

should then be used to determine the amount of debt

service payments to be assigned to highways and the

amount to be assigned to mass transit. As subsequent

issues are sold, the percentages should be revised to

represent the totals assigned to highways and to mass

transit, respectively. This approach will require fewer

transportation allocations, the other transportation

included in item 9.B. on form FHWA-541.

Airport, railroad, and marine bond issues are usually not

form FHWA-541. For example, an airport bond may be

funding highway and access improvements into the

airport and an intermodal linkage to a mass transit

system. However, only information for the allocation of

proceeds to highways and mass transit should be reported

on forms FHWA-531 and FHWA-532. 

When annual reports and audits are published by special

highway authorities, bond commissions, and so forth, the

data are usually in sufficient detail to identify

transportation related debt transactions and the amount of

outstanding debt. These reports should be included as

supplementary debt service information with the other

forms that supply debt information.

Any available data supplementary to the bond reports and

important to an understanding of the transactions should

be forwarded to the FHWA Washington Headquarters

with the annual bond forms. For example, copies of

bond prospectuses, and official bond statements should

be provided with form FHWA-541. Copies of the laws

that authorize bonds or otherwise affect the status of

State highway debt or debt service, any printed financial

reports, special bond studies, reorganization plans, etc.,

that give additional data on the nature and mechanisms of

a State’s bonding program and their debt service are of

particular importance and should be forwarded to the

FHWA Washington Headquarters when available.

INSTRUCTIONS FOR FORM FHWA-541

Form FHWA-541 is designed to report all bond issues

whose proceeds were used, in whole or in part, for

highway and mass transit purposes. In general, bond

issues sold during the year should be listed separately

when issued under separate authorizations and statutory

provisions or when carrying different issue dates. The
9-3

data shown must cover the same 12-month reporting must be paid to retire the bond at the end of its term or at

period as forms FHWA-531 and FHWA-532.

In the instructions below, all items are numbered to

correspond to the appropriate items on form FHWA-541.

Item 1. Statute authorizing issue.— Record the chapter,

section number, and year of the law authorizing the bond

issue listed in each column.

Item 2. Total bonds authorized.— Record the total coupon bonds are sold at a large discount. 

amount of bonds authorized under the statute, even when

the entire amount has not been sold at the end of the

current year.

Item 3. Total bonds sold to end of current year.—

Record the total cumulative amount of bonds sold to the The amount of accrued interest from the sale of a given

end of the current year. amount of bonds should equal the interest on that amount

Item 4. Posted interest rate(s)— percent.— Record the

rate or rates of interest printed on the bonds.

Item 5. Source of funds for debt service.— Record and

identify the source of funds for payment of debt service. 

Examples of sources of funds for debt service are: motorfuel taxes, motor-vehicle revenues, State highway fund,

general funds, road tolls, Federal funds, etc. If the bond

issue is secured by a pledge of full faith and credit of the Item 9. Allotment of proceeds of sales.— Record in this

State, even though debt service may be payable out of item the allocation of bond proceeds. The allocation of

specific revenues, the issue should also be identified by proceeds reflects the distribution of funds to various

the symbol "G.O." for general obligation. When Federal purposes and accounts, and is not the actual expenditure

funds are shown as the source of funds for debt service, of proceeds.

the agency and amount of funds should be provided in a

note.

Item 6. Nominal date of issue.— Record the nominal or highway or mass transit purposes. 

official date of issue of a bond. This is the date stated on

the face of the bond and interest accrues as of that date. 

If the bond begins to bear interest on other than the

nominal issue date, information on when interest accrues

should be provided in a note.

Item 7. Date of sale.— Record the actual date of sale. If

bonds having one nominal date of issue are sold over a

period of time, the word "various" should also be entered

in item 7.

Item 8. Proceeds of sales during current year.— Record

in this item the transaction information on each bond

sale.

Item 8.A. Par value.— Enter the par value of the bond

sold. The par value is the principal amount or amount

found on the face of the bond. This is the amount that

maturity. 

Item 8.B. Premium (plus) or discount (minus).— Enter

any premiums or discounts involved in the bond sale. 

When a bond’s posted interest rate is higher than current

market rates, the bonds are usually sold at a premium. 

When the posted interest rate is less than current market

rates, the bonds are usually sold at a discount. ZeroItem 8.C. Accrued interest.— Enter the amount of

interest accrued in the selling price of a bond between the

date of issue and the date of sale. 

for one day multiplied by the number of days that elapsed

between the date when the bonds began to bear interest

and the date of sale. Any discrepancies should be

explained in a note. 

Item 8.D. Total.— Enter the net proceeds of the sale of a

bond. Net proceeds equal the sum of a bond's par value,

premiums or discounts, and accrued interest. 

Item 9.A. Allotments for Highways and mass transit.—

Record in this item the allocation of bond proceeds for

Item 9.A.(1). For construction of State highways.—

Enter the allocation of bond proceeds for State highways.

Item 9.A.(2). For construction of local roads and

streets.— Enter the allocation of bond proceeds for local

roads and streets.

Item 9.A.(3). For construction of toll facilities.— Enter

the allocation of proceeds for toll facilities.

Item 9.A.(4). For construction of mass transit 

facilities.— Enter the allocation of bond proceeds for

mass transit facilities and projects.

Item 9.A.(5). Other.— Enter and identify the allocation of

bond proceeds for highways and mass transit purposes

other than those listed above. 
9-4

Item 9.A.(6). For debt service.— Record in this item all

required allocations of bond proceeds for debt service 

Item 9.A.(6).(a). For bond sale and other

administrative expenses.— Enter all allocations of bond

proceeds for the administrative costs of issuing the bond. 

These include commissions and agent fees.

Item 9.A.(6).(b). For interest.— Enter all allocations of

bond proceeds for interest payments including accrued

interest.

Item 9.A.(6).(c). For redemption.— Enter all allocations

of bond proceeds for redemption payments. 

Item 9.A.(6).(d). For refunding bonds, or funding

notes.— Enter all allocations of bond proceeds for

refunding outstanding bonds. 

Item 9.A.(7). Total.— Enter the sum of allocations in

items 9.A.(1). through 9.A.(6). This amount should be

carried onto form FHWA-531, item B.10. 

Item 9.B. Allotments for other purposes.— Enter the

allocation of bond proceeds from highway and mass

transit bond issues for nonhighway or nonmass transit

purposes. The purpose of the allocation must be

specified. The construction of airports, marine facilities,

or railroad yards are examples of bond proceed

allocations that should be reported in this item. 

Item 9.C. Total Allotments.— Enter the sum of

allocations in items 9.A. and 9.B.

This sum will typically equal net bond proceeds from

bond sales reported in item 8.D. The allotments of bond

proceeds reported might differ from the net proceeds

from bond sales if a portion of the proceeds was

unallotted in the current year, or if amounts unallotted

from prior year bond sales were allocated in the current

year. 

Item 10. Amount unallotted at end of year.— Enter any

bond proceeds that remain to be allocated at the end of

the year. Allocation of this remainder should be

accounted for on form FHWA-541 in subsequent years

until the entire amount has been allocated. 

Unallocated amounts are proceeds that have not been 

distributed to a fund or account. These should not be

confused with unexpended balances of allocated

proceeds. The unexpended balance of allocated proceeds

are accounted for in the balances of the funds or accounts

that they were distributed to, and appear in the balances

reported on FHWA-531 and FHWA-532, rather than in

this item. 

INSTRUCTIONS FOR FORM FHWA-542

Form FHWA-542 is designed to be a (par value) record

of the status of all State transportation obligations issued,

redeemed, and outstanding for the reporting year. 

Information is recorded on each line for individual issues. 

A grand total line is provided at the top of the form for a

summation of all issues included on the form. The data

shown must cover the same calendar or fiscal year

reported on forms FHWA-531 and FHWA-532. The

amount reported as outstanding 

Column (1) Description of issue.— Record a description

identifying individual bond issues. The listings for bond

issues should distinguish among the issues as descriptive

identifications on form FHWA-541 described and

identified separate bond issues.

Typically, bond issues sold during the year are listed

separately when issued under separate authorizations and

statutory provisions, or when carrying different issue

dates. The State may prefer to group together all bonds

issued under one authorization even though issued over a

period of years. Separate forms FHWA-542 may be used

for different major groups of obligations (for example,

trunk highway bonds, secondary road bonds,

transportation bonds). Issues for toll facilities should be

reported and identified separately. Enter the total for

each sheet on the first line and the grand total on the last

sheet.

Column (2) Year of issue.— Record the year in which

the bonds were sold.

Column (3) Amount outstanding, beginning of year.—

Record the par value amount of bonds outstanding at the

end of the prior year. The par value is the principal

amount found on the face of the bond. This is the amount

that is paid at maturity to retire the bond. Entries in this

column should agree with the entries in column (7) on

form FHWA-542 for the previous year. This advice

applies to the grand total line and the individual bond

issue lines. Any differences should be explained in a

note.

For zero-coupon or capital appreciation bonds that pay

no direct interest, the full amount that the State will have

to pay at maturity to retire the bonds should be carried on

the FHWA-542 report as outstanding transportation debt. 

 
9-5

Column (4) Amount issued during year.— Record the

par value of all bonds issued during the reporting year. 

This entry should agree with the corresponding entry in

item 8.A. on form FHWA-541. Column (8) Sinking fund or bond redemption reserves,

Column (5) Current redemption during year (par of investments) in sinking funds or other reserves for

value).— Record the par value of all bonds retired during

the year, from current revenue, or sinking funds. Exclude

from this column bonds that were redeemed from the

proceeds of a refunding issue. See the column (6)

instructions for redemptions involving refunding bonds. 

It is not necessary to separately report the redemptions

made at different times during the year for the same bond

issue.

This item reports the par value of redemptions from

current revenue or sinking funds while form FHWA-532

(or optional form FHWA-543) reports the net

redemption payment. Therefore, differences in the

amounts shown for redemption are likely. Where

differences for reasons other than premiums and

discounts occur, a reconciliation or note explaining the

differences between the redemption amounts reported on

the two forms should be supplied. 

For example, redemption payment may have been made

to an agent on the last day of one reporting year while the

actual redemption may have occurred sometime in the

first month of the next reporting year. Irregularities, such

as failure of bondholders to present bonds for

redemption, occur occasionally and will also result in

differences between the two report forms. 

Column (6) Refunding redemption during year (par

value).— Record the par value of all bonds retired by the

proceeds of refunding issues. Obligations defeased

through refunding issues are considered retired. 

This item reports the par value of redemptions by

refunding, while form FHWA-532 (or optional form

FHWA-543) reports the net payment made to redeem

these bonds. Therefore, differences in the amounts

shown for redemption are likely. Where differences for

reasons other than premiums and discounts occur, a

reconciliation or note explaining the differences between

the redemption amounts reported on the two forms

should be supplied. 

Column (7) Amount outstanding, end of year.— Record

the par value amount of bonds outstanding at the end of

the current reporting year. Bonds that mature on the first

day of a given year are considered to have been

outstanding at the end of the prior year, even if

redemption payment was entered on State records as a

disbursement during the prior year.

end of year.— Record the balances (cash plus the value

retirement of State highway or mass transit debt for the

last day of the year. If reserves are not held against

individual issues, balances should be entered as a part of

the total for the group of issues involved. Disbursements

for maturities during the next year should be considered

as reserves against the next year's retirements and

included in balances. Identify any such entries in a note.

INSTRUCTIONS FOR OPTIONAL

FORM FHWA-543

In some States, sinking funds or other reserves for debt

service are not under the jurisdiction of the State highway

agency, and debt service information must be obtained

from the State treasurer, bond commission, transportation

finance agency, toll authority, auditor, or comptroller. 

This form substitutes for reporting debt service

transactions and financing on forms FHWA-531 and

FHWA-532. 

Form FHWA-543 is designed to report balanced

statements of sinking funds or debt service funds. These

funds are maintained for making interest and redemption

payments on State obligations for highways or mass

transit. The reported information must cover the same

12-month period reported on forms FHWA-531 and

FHWA-532. (Debt transactions of each fund can also be

identified by means of separate columns on forms

FHWA-531 and FHWA-532.) In some States, there are

no separate funds, particularly in connection with serial

bond issues, and annual payments for interest and

principal are met from current revenues or

appropriations. In these cases, entries for the balances in

items 1. and 4. on form FHWA-543 should be left blank

because current disbursements for debt service will be

paid for by the necessary funds from current revenues.

If two or more debt service funds are reported on form

FHWA-543, a separate column should be used for each

fund. Additional sheets may be used, if necessary.

Item 1. Balance, beginning of year.— Enter the sinking

fund and debt fund balances available at the beginning of

the reporting year. The balances are composed of cash

and the value of investments at cost and should agree

with item 4. on form FHWA-543 from the previous year. 

If a sinking fund is partially invested in the bonds that it

was created to retire, those bonds should be considered
9-6

part of outstanding debt as long as they are held in the have been transferred to the debt service fund until a

sinking fund or until they are canceled. subsequent year, or (2) proceeds of bond sales allotted to

Item 2. Income during year.— Record in this item all

sinking fund income from current State revenues.

Item 2.A.(1). Highway-user revenues.— Enter revenue

from highway-user taxation, i.e., motor-fuel, motorvehicle, and motor-carrier taxes and fees, in item 2.A.(1). 

Revenues from these taxes and fees may include specific

dedications that are identified and reported on forms

FHWA-556 and FHWA-566 and stated in tables MF106 and MV-106 in Highway Taxes and Fees, How

They Are Collected and Distributed. 

Item 2.A.(2). Tolls on State roads, bridges, etc.— Enter

toll income allocated for debt service by the State

highway agency or by State authorities. Identify the toll

facility that provided the funds.

Item 2.A.(3) Other.— Enter all other State income used

for debt service. The funding source of amounts entered

in this item should be identified. Appropriations from

State general revenues for debt service on State

obligations, sales tax revenues, other State taxes and fees,

or Federal funds are all examples of funding sources that

should be identified. See table S-106 in Highway Taxes

and Fees, How They Are Collected and Distributed for

guidance.

Item 2.A.(4). Total.— Enter the sum of items 2.A.(1).

through 2.A.(3). 

Item 2.B. Funds from other governments.— Record in

this item all funds received from other levels of

government that are used for debt service.

Item 2.B.(1). Federal funds.— Enter any Federal funds

used for debt service. The agency and amount should be

specified in a note.

Item 2.B.(2). Local governments.— Enter any funds

from local governments that were used for debt service. 

Item 2.B.(3). Total.— Enter the sum of items 2.B.(1).

through 2.B.(2). 

Item 2.C. Proceeds from the sale of bonds.— Record in

this item all funds derived from bond proceeds. In most

cases, this entry will be identical to item 9.A.(6). on form

FHWA-541. The instructions for this item are essentially

the same as those for similar items on form FHWA-541. 

Differences may arise because: (1) accrued interest or the

premium on bond sales received in one year may not

construction in the year of sale may have been redirected

into the debt service fund in the year for which the form

FHWA-543 is prepared. Unless the explanation is

obvious, any differences between item 9.A.(6). on form

FHWA-541 and item 2.B. on form FHWA-543, should

be reconciled in a note.

Item 2.C.(1). Principal applied to debt service.— Enter

any bond proceeds that were used for debt service. Bond

proceeds are reported as either from refunding issues in

item 2.C.(1).(a). or new issues in item 2.C.(1).(b). 

Exceptions may occur where bond proceeds have been

allocated to pay interest (otherwise known as capitalized

interest) during the construction period of projects

financed by revenue bonds.

Item 2.C.(2). Premium (plus) or discount (minus) on

sale.— Enter any premiums or discounts on the sale of

debt service issues.

Item 2.C.(3). Accrued interest on sales.— Enter any

interest accrued on the sale of debt service issues.

Item 2.C.(4). Total.— Enter the sum of items 2.C.(1).

through 2.C.(3).

Item 2.D. Net earnings of sinking fund or

investments.— Enter the amount of net income to the debt

service fund from interest and investment transactions. 

For a simple revolving fund having no investments, this

item would include only interest on deposits. For a

sinking fund that has investments, the net gain or loss of

the investment account transactions should also be

included in this item.

Item 3. Disbursements during year.— Record in this

item all sinking fund disbursements. The information

reported in this item should be consistent with the

instructions in Chapter 8 for debt service transactions

and transfers.

Item 3.A. Bond administrative and finance charges.—

Enter all bond administrative and finance charges,

including the cost of printing, advertising, and legal fees

incident to the sale of bonds; service charges paid to

fiscal agents; and any other costs of record incidental to

debt service.

Item 3.B. Interest payments.— Enter the total of interest

payments during the year, including accrued interest

received on sale of bonds or paid on redemptions in

advance of maturity.
9-7

Item 3.C. Redemption payments.— Record in this item

information on redemption payments.

Item 3.C.(1). Principal.— Enter the par value of

redemption payments.

Item 3.C.(2). Premium or (discount).— Enter the amount

of the premium or discount.

Item 3.C.(3). Total.— Enter the sum of item 3.C.(1). plus

premiums or minus discounts in item 3.C.(2). as

appropriate. The resulting total is the amount of net

redemption payments.

Because form FHWA-542 records redemption of bonds

with beginning of year maturities in the year due and

form FHWA-543 records them in the year paid,

differences in the amounts shown for redemption are

likely. Also, irregularities caused by the failure of

bondholders to present bonds for redemption will

occasionally occur and result in differences between the

two reports. Where differences occur, a reconciliation

between the redemptions reported on the two forms

should be supplied.

The instructions for form FHWA-542 provide that in

cases where disbursements in the last month of the year

were made for maturities occurring in the next year, the

amount of such disbursements should be considered part

of the retirement reserve and included in the balance to

be reported in column (8) of that form. If this is done,

the balance reported in FHWA-542 and the balance

reported in item 4. of FHWA-543 will differ. A

reconciliation of these two balances should be supplied.

Item 3.D. Transfers to other funds.— Record in this

item the transfer of any funds out of the sinking fund or

dedicated debt service fund. Funds previously

accumulated for debt service may be redirected to

another purpose. Details of such transactions should be

given in items 3.D.(1). through 3.D.(3).

Item 3.E. Total disbursements.— Enter the sum of

items 3.A. through 3.D.

Items 4. Balance, end of year.— Record in this item the

sinking fund and debt fund balances available at the end

of the reporting year. The balances are composed of cash

and the value of investments at cost. 
10-1

CHAPTER 10

REPORTING OF INCOME AND EXPENDITURES FOR 

TOLL HIGHWAY AND BRIDGE AUTHORITIES

Many States have legislated special arrangements to system, information for that toll facility must be reported. 

finance, build, and operate highway facilities. Some When a private corporation enters into a lease agreement

States have created special authorities or public with a State or local government to operate an existing

corporations. Other States have permitted the public facility, the toll facility is a still considered to be

establishment of public/private partnerships. The key publicly owned, and reporting is necessary. 

feature of all these special arrangements is the use of tolls

to finance the construction and operation of highways, Toll facilities built as public/private partnerships are

bridges, tunnels, and ferries. Some toll facilities are considered public facilities when a State or local

integrated with the State department of transportation government assumes functional control over the facility. 

(DOT), State highway agency or a local government. Until then, such facilities are exempt from reporting. 

Other toll facilities are independent State or local

agencies. Toll facilities can also be State or local Under a "build-operate-transfer" type of partnership, a

government partnerships with private corporations. In private company is permitted by a State or local

any event, information about the finances and programs government to build a toll facility and operate it over a

of State and local toll facilities are essential in measuring number of years in exchange for pledging to turn it over

the total highway activities within a State. to its public partner at the end of that period. If the State

IMPORTANT GENERAL CONSIDERATIONS facility, and no legal liability, the facility is considered to

The following instructions should be followed in

compiling information for State and local toll facilities. 

Information is reported for all toll facilities that are

owned by State or local governments, or by public

entities chartered by State or local governments. The

FHWA report, Toll Facilities in the United States, for a lease to operate the facility for a set number of

should be used as a reference for the toll facilities years. If the private company cedes control to a public

existing in each State. authority, and is required to provide the public authority

Reporting Requirement Exemptions.— Information on all

publicly and privately owned toll facilities is of interest to

FHWA. The reporting requirements that are detailed in

this chapter extend only to public toll facilities. Privately

owned and operated toll facilities are exempt from these

reporting requirements. A private toll facility determines

its own toll rate schedule, operates as business that is free

to succeed or fail through its own business decisions and

operating practices, and owns the toll facility. Initial phase.— The following information should be

For a toll facility to be exempt from these reporting during the initial phase of an authority's program.

requirements, a determination must be made as to the

ownership of the toll facility, i.e., public or private. In ! Copies of enabling legislation creating toll or

the case of public/private partnerships, an examination non-toll authorities, or laws creating study

must also be made of the relationship between the private committees or similar bodies to investigate the

corporation and the responsible State or local feasibility of the proposed undertaking.

government. 

When the toll facility is considered owned by a State or the relationships between governments and

local government and part of the State or local highway private corporations for the purpose of

or local government has no direct control over the

be privately owned, and exempt from reporting, until the

State or local government takes it over. 

Under a "build-transfer-operate type" of partnership, a

private company builds a toll facility and immediately

turns it over to a State or local government in exchange

with financial data for the facility, then reporting is

required for that facility.

Copies of the authorizing legislation or contractual

agreements for toll facilities built as public/private

partnerships should be provided. While not required,

any publicly available reports on the funding of private

facilities would be of interest to FHWA. 

furnished to the Washington Headquarters as appropriate

! Copies of legislation authorizing and regulating
10-2

financing, constructing, and operating The annual report should be of sufficient detail to identify

transportation facilities. and segregate data elements by the categories on optional

! Copies of the official statement or bond statement provides adequate detail, additional State

prospectus issued, usually by bond report preparation is unnecessary. 

underwriters, in connection with the sale of

bonds. These should be copies of the final When published audit or financial reports are not

document that contains financial information on available or their information is not sufficient, the State

the bond issue, the application of bond proceeds should prepare a statement of the toll facility's receipts

and debt service requirements. and disbursements. Optional form FHWA-539 should be

! Copies of the trust indenture or trust agreement

issued in connection with the sale of bonds. For State or local toll facilities, the State may decide to

provide toll facility information in separate columns on

! Copies of monthly, quarterly, or other progress optional form FHWA-539. A microcomputer template

report prepared by the authority, auditors or using Lotus 1-2-3 is available for this form. See

consultants which provide information on the Appendix B for information about the template and

financial transactions of the project. options for electronic transmission of data to FHWA.

Annual operations.— Most toll authorities are required

by statute, trust agreement, or lease agreement to publish

the results of an annual financial audit that presents

financial information on receipts, disbursements, and

debt status. Toll authority financial reports should be

furnished to the Washington Headquarters as soon as

they become available. In many cases, the annual

financial report is sufficient for the FHWA's Office of appearing in Highway Statistics. 

Highway Policy Information to prepare a financial

summary of receipts and disbursements. When forms FHWA-531 and FHWA-532 are used, each

Data on the receipts, disbursements, and bonded several adaptations are needed. Toll revenues should be

indebtedness of State toll authorities are published in the reported on FHWA-531 in item B.5. Concessions and

annual Highway Statistics tables SF-3B, SF-4B, SB-2T,

and SB-3T. Information for local toll authorities is

published in the tables LGF-3B, LGF-4B, and LGB-2T.

Care must be taken to identify any payments or

reimbursements of funds between the authority and the

State highway agency so that duplications can be avoided

in summarizing State information. Typical of such

payments are advances and repayments of State highway

funds and contributions in the form of lease/rental

payments. 

Methods of reporting toll facility information.— Toll

facility data should be identified and reported separately

from non-toll State highway finance data on forms

FHWA-531, FHWA-532, and FHWA-534 and from

local highway finance data on form FHWA-536. There

are several ways that toll facility information can be

reported to FHWA. 

The State should provide an annual audit report or

financial statement for each State and local toll facility. 

form FHWA-539. If the annual audit or financial

used as a model.

A State may also elect to provide State toll facility

information on forms FHWA-531, FHWA-532, and

FHWA-534. The forms used to report toll facility

information should be separate from the forms used to

report nontoll information. By using separate forms, toll

and nontoll data are kept separate. The toll and nontoll

information are combined in the summary tables

toll facility should be reported in a separate column, and

rental income should be identified separately with

miscellaneous revenues on FHWA-531, item B.12. Toll

collection expenses should be included on FHWA-532,

item A.3.c., and identified separately in a footnote. When

form FHWA-534 is used to report toll facility

improvement type and functional class data, a separate

series of forms should be provided, showing the facility

or facilities included. 

A State may also elect to provide local toll facility

information on form FHWA-536. When form

FHWA-536 is used, each toll facility should be reported

on a separate form from the form used to report nontoll

information. Several adaptations to form FHWA-536 are

also needed. Item II.A.5. should be used to report toll

revenues. Concessions and rental income should be

identified with miscellaneous revenues in item II.A.4.b. 

Toll collection expenses should be included in

item III.A.3.a.

In a few special cases, toll facility information may not be

readily separated from financial information of the State
10-3

DOT. These are usually facilities that the State DOT The individual data items are directly related to

finances and operates but for which the DOT has not information requested for State and local highway

established a separate fund or account to record the programs. For more detailed information on items

financial transactions. To the extent possible, the appearing on page 1 on this form, refer to the instructions

transactions of these toll facilities should be identified in Chapter 8.

and reported separately from those of the State DOT. 

This reporting may be in separate columns on forms Page 2 of this form is a simplification of form

FHWA-531 and FHWA-532, on optional form FHWA-534. Individual columns should be used to

FHWA-539, or as notes to the items on forms identify spending by functional class, and to identify

FHWA-531 and FHWA-532 that include information on amounts spent on and off the NHS. For example, if one

the toll facility. segment of a toll road is classified as rural other principal

Supplemental data.— The following types of information

should be furnished to the FHWA's Office of Highway

Policy Information (HPPI) when available.

! Copies of annual reports or other periodic

statements of operations, giving toll revenues,

operating costs, and traffic, where such data are

prepared and published by the authority

! Date of initiation or termination of tolls

! Upon termination of tolls, information on final

disposition of assets, outstanding obligations of Item I. Opening balance.— This item records the

the toll facility, and assumption of jurisdictional balances available at the beginning of the reporting year. 

responsibility for the facility The balances are composed of cash and the value of

! Copies of recently passed legislation regulating the previous year's report. 

the structure or financial transactions of toll

facilities

! Copies of public/private partnership agreements

including lease agreements

INSTRUCTIONS FOR OPTIONAL 

FORM FHWA-539

This optional form consolidates the information needed

from toll facilities and is also a simplification of forms

FHWA-531, FHWA-532, FHWA-534, and FHWA-536. 

The following procedures should be followed in

recording data for the items on page 1 and in providing

the detail for the supporting schedule on page 2. (Note

that the items on page 2 correspond to the items on 

page 1.)

Page 1 of this form is a simplification of forms

FHWA-531, FHWA-532, and FHWA-536. Separate

columns should be used to report on individual facilities

or additional forms can be used for individual facilities. 

If a single toll facility is being reported on form

FHWA-539, the columns should be used to report data

for accounts, activities, funds, or fund transfers. 

arterial off the NHS, while another segment is classified

as urbanized other freeway and expressway on the NHS,

then the amounts spent on each segment should be

recorded in separate columns on page 2. For more

detailed information on items appearing on page 2 on this

form, refer to the instructions for form FHWA-534 in

Chapter 12. 

The general reporting instructions in Chapter 8 on fiscal

or calendar year reporting, cash or accrual based

reporting, and other considerations also apply to toll

facility reporting. 

investments at cost and should agree with item IV. from

Item II. Receipts.— Eleven items are provided to record

the receipts of the toll facility. 

Item II.A. Tolls.— Enter all toll revenue collected by the

facility. If more than one facility is being reported on this

form, separate columns should be used for each toll

facility. This instruction on the separation of data applies

to all items on this form.

Item II.B. Concessions and rentals.— Enter all

concession and rental revenues received as income by the

toll facility. 

Item II.C. State highway-user revenue.— Enter all State

revenue from the taxation of motor fuels, motor vehicles,

motor carriers, and driver licenses fees transferred to, or

received by, the toll facility. 

Information provided in this item and in items II.D.

through II.F. should be comparable to information

reported in item A.8., FHWA-532, which reports State

and Federal revenues transferred by the State to toll

facilities.
10-4

Item II.D. Other State funds.— Enter all other State Item III.C. Construction.— Record expenditures for

funds received that are not identified and included as construction of roadways, structures, and traffic service

highway-user revenues. Most often, these funds will be facilities. Show additional information for this type of

State general funds. However, if any of the funds expenditure on page 2 in item VI. 

represented in this item are from a State tax specifically

dedicated to the toll facility or to highways, the tax and

amount should be identified in a note.

Item II.E. Funds from the Federal Highway

Administration.— Enter all FHWA funds received by the Item III.E. Operations.— Enter all expenditures for toll

toll facility. collection, operation of traffic control systems, snow

Item II.F. Funds from other Federal agencies.— Enter

all other Federal funds received by the toll facility. The

agency and amount should be identified in a note. Item III.F. Administration.— Enter the expenditures of

Item II.G. Funds from local governments.— Enter all

funds received from local governments by the toll facility. Item III.G. Law enforcement and safety.— Enter all

Information provided in this item should be comparable enforcement and highway safety programs. In cases

to information reported in item III.D. on form where the toll facility has a contractual arrangement with

FHWA-536 which reports local government revenue the State police for a dedicated detachment of State

transferred to local and State toll facilities. police officers or for periodic patrolling, the expenditures

Item II.H. Proceeds of sale of bonds.— Enter net

proceeds received from the sale of bonds. 

Item II.I. Investment income.— Enter all income

received by the toll facility from interest on deposits and

investments and investment income from the net profit or

loss from the purchase and sale of investments. Interest Item III.I. Bond interest.— Enter all bond and note

and investment income from sinking fund transactions interest paid by the toll facility.

should be included in this item.

Item II.J. Miscellaneous income.— Enter all income amount expended by the facility to retire or redeem

received by the toll facility from sources that are not outstanding bonds.

otherwise categorized on this form. 

Item II.K. Total income.— Enter the sum of items II.A. amount of any toll facility funds transferred to the State

through II.J. highway fund for expenditure on State highways.

Item III. Expenditures.— Fifteen items are provided to

record the toll facility's expenditures. Refer to the

instructions in Chapter 8 for additional identification and

explanation of expenditures to include in each data item.

Item III.A. Right-of-way.— Enter expenditures for

purchase of land, improvements, and easements. Show

additional information for this type of expenditure on

page 2 in item VI. 

Item III.B. Engineering.— Enter all engineering

expenditures by the facility. Show additional information

for this type of expenditure on page 2 in item VI. 

Item III.D. Maintenance.— Enter all maintenance

expenditures by the facility. Show detail by functional

class and NHS on page 2 in item VII. 

removal and sanding, and miscellaneous traffic operation

and service expenditures.

the toll facility for general administration.

expenditures by the toll facility for highway law

for police traffic supervision and control activities are

reported in this item. These expenditures should not be

included in any transfer item on this form.

Item III.H. Bond administration.— Enter all bond

administrative expenses and agent fees of the toll facility.

Item III.J. Bond redemption (net).— Enter the actual net

Item III.K. Transfer to State highway fund.— Enter the

Information in this item should be comparable to

information appearing in item B.5. on form FHWA-531

which reports State income from toll facility revenues.

Item III.L. Transfer to local governments.— Enter the

amount of any toll facility funds transferred to local

governments for highway, road, or street purposes. Any

funds expended for nonhighway purposes included in this

item should be identified in a note.

Information in this item should be comparable to

information appearing in item II.A.5. on form
10-5

FHWA-536 which reports local government income the columns and identifies expenditures both on and off

from State or local toll facility revenues. the National Highway System (NHS).

Item III.M. Transfer to mass transit.— Enter the amount The FHWA report, Toll Facilities in the United States,

of any toll facility funds transferred for mass should be used as a reference for mileage and functional

transportation activities. The mass transit operator or system information. See Chapter 12 for additional

government agency receiving the funds should be information on improvement types and the classification

identified in a note. of highways by functional system. 

Item III.N. Transfer to other.— Enter the amount of any

toll facility funds transferred for unspecified or nontransportation purposes or to the general fund. When

funds are transferred to an identifiable fund, purpose, or

activity, information on the disposition should be

provided in a note. Item VI.A. New Facilities— Record expenditures for new

Item III.O. Total expenditures.— Enter the sum of items

III.A. through III.N.

Item IV. Closing balance.— This item records the

balances of cash and investments remaining at the end of

the reporting year for all funds and accounts of the toll

facility. Item VI.A.1. Right-of-way costs.— Enter expenditures

Item V. Debt status.— This item records the par value

status of toll facility debt, including par value of

outstanding beginning and ending obligation balances,

and the par value of obligations issued and redeemed Item VI.A.2. Engineering Costs.— Enter expenditures

during the year. If more than one facility is being for construction engineering; field engineering and

reported on this form, separate debt status data for each inspections; surveys, material testing, and borings;

facility with obligations outstanding should be included preparation of plans, specifications and

in a note. estimates (PS & E); and traffic and related studies.

Item V.A. Total debt.— Enter the par value totals of all

toll facility issues in the appropriate columns, i.e.,

amount outstanding at the beginning of the year, amount

issued during the year, amount redeemed during the year,

and amount outstanding at the end of the year. Any

difference between the amount outstanding at the

beginning of the year and the amount outstanding at the

end of the prior year needs to be explained in a note. 

Item V.A.1. Refunding issues.— Enter for each column

the par value totals of any refunding issues reported in

item V.A. 

Item VI. Capital Outlay.— This item records information

about capital outlay by four categories of improvement

type and by functional system. The four improvement

type categories are: 1) new facilities, 2) capacity

additions to existing facilities, 3) system preservation,

and 4) system enhancements and operations. The

improvement type information is recorded on the lines

for each item. The functional system data is recorded in

For local government toll facilities only, States can use

the modified instructions that follow item VII. for

reporting detail information on construction improvement

types. 

highways, roads, streets, and bridges. This item excludes

expenditures on existing highways, roads, streets, and

bridges. Record expenditures by improvement types for:

1) right-of-way; 2) engineering costs; 3) construction of

new highways, roads, and streets; 4) construction of new

bridges.

for right-of-way administration; purchase of land,

improvements and easements; and the costs of moving

and relocating buildings, businesses, and persons.

Item VI.A.3. Construction of New Roads.— Enter

expenditures for construction of a new facility that will

not replace or relocate an existing facility. A new facility

will provide: (1) a facility where none existed, or (2) an

additional and alternate facility to an existing facility that

will remain open and continue to serve through traffic.

Item VI.A.4. Construction of New Bridges.— Enter

expenditures for construction of a new bridge that will

not replace or relocate an existing facility. A new bridge

will provide: (1) a bridge where none existed, or (2) an

additional and alternate bridge to an existing bridge or

ferry that will remain open and continue to serve through

traffic.

Item VI.A.5. Total.— Enter the sum of items VI.A.1 to

VI.A.4. 

VI.B. Capacity Additions to Existing

Facilities.— Record all expenditures on highways, roads,

streets, and bridges that includes the addition of lanes to
10-6

an existing facility. Record expenditures by converted to a purpose other than carrying through

improvement types for: 1) right-of-way; 2) engineering traffic. 

costs; 3) relocation with added capacity; 4)

reconstruction with added capacity; 5) major widening;

6) bridge replacement with added capacity; and 7) bridge

rehabilitation with added capacity.

VI.B.1. Right-Of-Way Costs.— Enter expenditures for:

right-of-way administration; purchase of land,

improvements and easements; and the costs of moving

and relocating buildings, businesses, and persons.

VI.B.2. Engineering Costs.— Enter expenditures for:

construction engineering; field engineering and

inspections; surveys, material testing, and borings;

preparation of plans, specifications and

estimates (PS & E); and traffic and related studies.

VI.B.3. Relocation with Added Capacity.— Enter

expenditures for construction of a facility with additional

lanes on a new location that replaces an existing route. 

The new facility carries all the through traffic with the

previous facility closed or retained as a land-service road

only.

VI.B.4. Reconstruction with Added Capacity.— Enter

expenditures for construction on the approximate

alignment of an existing route where the old pavement

structure is substantially removed and replaced. 

Reconstruction results in additional capacity through

widening to provide additional through lanes, dualizing,

adding or revising interchanges, replacing other highway

elements such as a grade separation to replace an existing

grade intersection, or otherwise improving the existing

facility without changing the basic character of the

facility.

VI.B.5. Major Widening.— Enter expenditures for the

addition of lanes or dualization of an existing facility

where the existing pavement is salvaged. Also included,

where necessary, is the resurfacing of existing pavement

and other incidental improvements such as drainage and

shoulder improvements.

VI.B.6. Bridge Replacement with Added

Capacity.— Enter expenditures for the total replacement does not have an increased capacity over the previous

of a structurally deficient or functionally obsolete bridge facility. The new facility carries all the through traffic

with a new bridge in the same traffic corridor. The with the previous facility closed or retained as a landreplacement bridge is designed for an increased traffic service road only.

flow. Construction of a dual structure to alleviate a

capacity deficiency is also included. The replacement

bridge carries all of the through traffic with the old bridge

retained for local service only, removed, closed, or

VI.B.7. Bridge Rehabilitation with added

Capacity.— Enter expenditures for major work required

to restore the structural integrity of a bridge as well as

work necessary to correct major safety defects. Bridge

deck replacement (both partial and complete) and the

widening of bridges to specified standards by widening

lanes or adding lanes are included. Construction of a

dual structure to alleviate a capacity deficiency is also

included when the old structure is included in the dual

structure. 

VI.B.8. Total.— Enter the sum of items VI.B.1 to VI.B.7.

VI.C. System Preservation.— Record expenditures of

activities which preserve and enhance the performance of

highways, roads, and bridges. These can include

infrastructure repair, reconstruction, and rehabilitation to

maintain and maximize performance of the existing

system. These activities are typically carried out on a

continuous and timely basis as part of a State highway

agency’s maintenance program. Record expenditures by

improvement types for: 1) right-of-way; 2) engineering

costs; 3) relocation with no added capacity;

4) reconstruction with no added capacity; 5) restoration,

rehabilitation, and resurfacing; 6) minor widening,

7) bridge replacement with no added capacity; and

8) bridge rehabilitation with no added capacity.

VI.C.1. Right-of-Way Costs.— Enter expenditures for

right-of-way administration; purchase of land,

improvements and easements; and the costs of moving

and relocating buildings, businesses, and persons.

VI.C.2. Engineering Costs.— Enter expenditures for

construction engineering; field engineering and

inspections; surveys, material testing, and borings;

preparation of plans, specifications and

estimates (PS & E); and traffic and related studies.

VI.C.3. Relocation with No Added Capacity.— Enter

expenditures for construction of a facility on a new

location that replaces an existing route. The new facility

VI.C.4. Reconstruction with No Added

Capacity.— Enter expenditures for construction on the

approximate alignment of an existing route where the old

pavement structure is substantially removed and
10-7

replaced. Reconstruction does not result in additional

capacity. It may involve widening the existing lanes or

shoulders, but would not add to the number of through

lanes. Improvements on the existing facility would not

change its basic character. 

VI.C.5. Restoration, Rehabilitation, and

Resurfacing.— Enter expenditures for work required to

return an existing pavement (including shoulders) to a

condition of adequate structural support or to a condition

adequate for placement of an additional stage of

construction. There may be some upgrading of unsafe

features or other incidental work in conjunction with

restoration, rehabilitation, and resurfacing. Typical

improvements would include replacing spalled or

malfunctioning joints; substantial pavement stabilization

prior to resurfacing; grinding or grooving of rigid

pavements; replacing deteriorated materials; reworking

or strengthening bases or subbases; and adding VI.D.2. Safety Improvements.— Enter expenditures for a

underdrains. Where surfacing is constructed by a project or a significant portion of a project that provides

separate project as a final stage of construction, the type features or devices to enhance safety. 

of improvement should be the same as that of the

preceding stage; i.e., new construction, relocation,

reconstruction, minor widening, etc.

VI.C.6. Minor Widening.— Enter expenditures for

widening the lanes or shoulders of an existing facility

without adding more through lanes. In many cases, the

improvement includes only the resurfacing of the existing

pavement and other incidental improvements such as

shoulder and drainage improvements. The existing

pavement is salvaged.

VI.C.7. Bridge Replacement With No Added

Capacity.— Enter expenditures for the total replacement

of a structurally deficient or functionally obsolete bridge

with a new bridge in the same traffic corridor. The new

bridge does not have an increased capacity over the

previous facility. The new bridge carries all of the

through traffic with the old bridge removed, closed or

converted to a purpose other than carrying through

traffic. 

VI.C.8. Bridge Rehabilitation With No Added

Capacity.— Enter expenditures for work required to

restore the structural integrity of a bridge as well as work

necessary to correct major safety defects. Bridge deck

replacement (both partial and complete) and the

widening of bridges to specified standards are included. 

Construction of a dual structure to alleviate a capacity

deficiency is not included.

VI.C.9. Total.— Enter the sum of items VI.C.1 to

VI.C.8.

VI.D. System Enhancement and Operation.— Record

expenditures that improve the quality of the natural

environment by reducing highway-related pollution and

by protecting and enhancing ecosystems, and for

improvements that are not directly related to the physical

structure or condition of roads and bridges. Record

expenditures by improvement types for: 1) engineering

costs; 2) safety improvements; 3) traffic management and

traffic engineering; 4) environmental improvements; and

5) other enhancements. 

VI.D.1. Engineering Costs.— Enter expenditures for

construction engineering; field engineering and

inspections; surveys, material testing, and borings;

preparation of plans, specifications and

estimates (PS & E); and traffic and related studies.

VI.D.3. Traffic management/traffic

engineering.— Enter expenditures for traffic operation

improvements which are designed to reduce traffic

congestion and to facilitate the flow of traffic, both

people and vehicles, on existing systems, or to conserve

motor fuels; or which are designed to reduce vehicle use

or to improve transit service. Expenditures for the

following types of systems would be included in this

item: intelligent transportation infrastructure (ITI), traffic

signal controls, freeway management, incident

management, road and bridge surveillance and control,

electronic message boards, video monitoring, motorist

information radio, freeway ramp control, weather

monitors, etc.

VI.D.4. Environmental Improvements.— Enter

expenditures for environmentally related features. This

category includes improvements that do not provide any

increase in the level of service, in the condition of the

facility, or in safety features. Typical improvements

which fall in this category would be noise barriers,

beautification, and other environmentally related features

not built as a part of the above identified improvement

types.

VI.D.5. Other Enhancements.— Enter expenditures for

improvements that are not categorized above, i.e., 

construction of bicycle and pedestrian facilities such as

bike paths, bicycle rest areas, pedestrian overpasses, etc.

VI.D.6. Total.— Enter the sum of items VI.D.1 to

VI.D.5.
10-8

VI.E. Total Capital Outlay.— Enter the sum of items

VI.A.5, VI.B.8, VI.C.9, and VI.D.6.

Maintenance expenditures.— Record information on

maintenance expenditures for the reported functional

system according to the maintenance definition provided

in Chapter 8. The information reported should be

consistent with information reported in items A.2.,

A.7.b., and A.9.b. on form FHWA-532. 

Item II. Maintenance costs.— Enter expenditures for

maintenance for this functional system. Maintenance

information should be reported in all three columns on

form FHWA-534.

Modified instructions for local toll facility construction

data in the detail section of item VI.— Record

expenditures for construction of roadways, structures,

and traffic service facilities. Show detail by the following

improvement types, functional system, and NHS on

page 2 in the following detail items. 

Item VI.A.5. New Construction.— Enter amounts for

construction of a new roadway that does not replace or

relocate an existing roadway. 

Item VI.B.8. Capacity Additions to Existing

Facilities.— Enter amounts for improvements that add

lane miles to the existing local toll facility. Include

improvements related to relocation when the existing

road remains in service, major widening that results in

additional lanes, and reconstruction that adds capacity. 

Item VI.C.4. System Preservation.— Enter amounts for

improvements that preserve the existing system without

adding capacity to the existing local toll facility. Include

improvements related to minor widening, restoration,

rehabilitation, resurfacing, bridge replacement and

rehabilitation, and reconstruction that does not add

capacity.

Item VI.D.6. System enhancements and

operation.— Enter amounts for improvements that are

not directly related to the physical structure or condition

of roads and bridges. Include improvements related to

safety, traffic management, enhancements, and the

environment. 

Item VI.E.. Total Construction.— Enter the sum of items

VI.A.5., VI.B.8., VI.C.9., and VI.D.6.
11-1

CHAPTER 11

REPORT IDENTIFYING RECEIPTS AND EXPENDITURES OF LOCAL GOVERNMENTS

The Local Highway Finance Report, form FHWA-536, is

a biennial report summarizing highway funding by local

governments. Local governments include counties,

townships, municipalities, special districts, and other

general purpose authorities that are under the jurisdiction

of local governments. Form FHWA-536 provides for the

reporting of four basic areas of local highway finance: 

(1) disposition of highway-user revenues; (2) revenues

used for roads and streets, identified by source and type

of funds; (3) road and street expenditures identified by

purpose or activity; and (4) local highway debt status.

Information reported on form FHWA-536 permits the

FHWA to develop a series of national tables depicting

the financing of highway activities at the local level. 

These and the more comprehensive State highway

finance information permit FHWA to infer relationships

and changes in revenue, expenditure and investment

patterns and determine financial trends which are

essential in policy and program development. The

highway finance summaries in combination with the

Highway Performance Monitoring System (HPMS) data

permit FHWA to estimate highway needs and to develop

the appropriate future Federal responsibility in highway

transportation. The information developed in the

national tables is used by public and private sector policy

staff, including all levels of government, business firms,

research groups, trade associations, universities, and

other interested groups and individuals.

Although form FHWA-536 is a biennial report, the

FHWA develops national summary tables annually. For

the off years, the FHWA uses projections, estimates, and

voluntarily submitted State data. Estimates are based on

previously reported State data and on trends observed

among those States that report annually. The State has

the option of providing form FHWA-536 on an annual

basis and is encouraged to report annually.

IMPORTANT GENERAL CONSIDERATIONS 

Determination of reporting year. The State should

consider the variety of fiscal years used by local

governments when selecting the period or periods to

report for a given year on form FHWA-536. The data on

form FHWA-536 may include a mixture of calendar and

fiscal years for the various local governments. The State

should specify the reporting period used and should

provide data that closely corresponds to that period.

Coverage and content of the local finance report.—

Although reported biennially, form FHWA-536 is

designed to cover a one-year period. The biennial

reporting requires a single form FHWA-536 providing

summary data for all units of local government.

Form FHWA-536 should report the disposition of all

highway-user revenues available to local governments

for expenditure, and all receipts and expenditures related

to: (1) the construction, maintenance, operation, and

administration of roads, streets, alleys, and other public

ways; (2) traffic police and road patrols; and (3) debt

service and status of bonds and notes issued to finance

highway activities.

Private sector donations for roads and streets under local

government jurisdiction should be included on form

FHWA-536. As the magnitude of private contributions

on the public highway system continues to escalate and

become a significant source of highway funding, the

reporting of data on private participation in the public

highway system is needed to understand and portray the

total picture of local highway finance.

Local governments may use either a cash or an accrual

accounting method in reporting information to the State

for compilation on form FHWA-536.

Toll facility data.— Local toll facility information must

be reported for publicly owned facilities on an annual

basis. Toll facility information should be identified and

reported separately from other local highway finance data

on form FHWA-536. There are several ways that toll

facility information can be reported to FHWA. 

Instructions on local toll facility reporting are included in

Chapter 10. 

Toll facility data should be reported by one of the

following methods: (1) as a copy of the toll facility's

annual financial report; (2) on form FHWA-539 (see

Chapter 10); or (3) on a separate form FHWA-536 for

each toll facility.

Sampling and estimation.— FHWA recommends that

States use sampling and estimation to prepare this form. 

Highway finance data may not be easily or economically

obtainable for all units of local government. It will

generally be advantageous to collect data for a selected

sample of local governments and then expand the sample

to obtain statewide totals.
11-2

Eighty percent of all municipalities have a population Outlay", split expenditures made on and off the NHS and

under 5,000. Data developed from past local highway provides specific items for improvement type data. 

finance reports indicate that this group accounts for less

than 12 percent of highway expenditures by For the State to successfully obtain information on capital

municipalities. The advantages of sampling become outlay on the NHS from local governments, the State may

evident when considering the application of staff need: 1) to identify local governments which have NHS

resources to the collection and reporting of data for form routes within their boundaries, and 2) to provide those

FHWA-536. local governments with a listing of NHS routes. Local

For a discussion of the basic concepts of sampling, with NHS. Coordination with those in the State who prepare

specific application in the field of local government HPMS data may be of assistance in identifying those

highway finance, refer to Appendix D. The State must local governments that have NHS segments within their

determine the sampling and estimation technique that fits boundaries. 

its particular needs, resources, and local government

structures. An explanation of the procedures used in In many States, the local governments’ share of capital

developing the statewide summaries should accompany outlay on the NHS may be relatively insignificant as only

the FHWA-536 reports if sampling and estimation two percent of total NHS mileage is under local

techniques are used. jurisdiction. 

When sampling is used as a data collection method, a

100 percent survey every 10 years of local governments

is suggested. This survey would indicate if any problems

exist with the sampling or estimation procedures, and if

changes or fine tuning of the procedures are necessary.

Each State should carefully review its FHWA-536

reporting to assure that all local government finances for

roads and streets are reported. Local government data

for capital outlay on the National Highway System

(NHS) should be correlated with mileage data supplied

through the HPMS.

In preparing form FHWA-536, the State should also

consider the number of governments and subordinate

agencies conducting highway programs. In some

instances, units subordinate to county, township, or

municipal governments perform highway functions. The

associated financial activities of these units should be

included as local governments for the purpose of

reporting information on form FHWA-536. 

The road and street functions of subordinate agencies

may be explicit in their names or can be determined

through local knowledge of their activities. Subordinate

units may include: road improvement districts; special

taxing districts or areas; and special public authorities or

commissions created to finance specific or selfsupporting facilities, such as toll bridges and facilities

acquired by lease-purchase agreements.

Capital outlay on the National Highway

System.— Expenditures made on the NHS are of special reported on form FHWA-532 applies equally to Federal

interest to FHWA. For this reason, columns (a) and (b) funds paid to local governments. 

on the page 2 detail section for Item A.1., "Capital

officials may not be aware of which roads are on the

Transfers of funds between governments.— Fund

transfers between local governments should not be

reported on form FHWA-536. Fund transfers to or from

the State and State agencies should be included on form

FHWA-536.

Transfers to State agencies for highway purposes that are 

reported on form FHWA-536 should be consistent with

amounts that are reported on form FHWA-531 as

receipts from local governments. Differences should

exist only if the forms are based on different reporting

years. 

Transfers from State agencies that are reported on form

FHWA-536 should be consistent with amounts that are

reported as transferred to local governments on forms

FHWA-556, FHWA-566, and FHWA-532. In most

cases, differences should exist only for reporting period

differences. Differences also occur when local

governments use a portion of multipurpose State or

Federal block grants for roads and streets. In this case,

the amount reported on form FHWA-536 may exceed

comparable amounts reported on the State-level forms

which only include grants required to be used on roads

and streets. Any major differences should be explained

in a note. 

All Federal funds received by local governments should

be identified and reported on form FHWA-536. This

includes direct payments, grants-in-aid, and funds

transferred through the State. The preceding discussion

on State revenue transfers being in agreement with those
11-3

When the State retains the local portion of State tax

revenues or Federal funds, the amount retained by the

State should be omitted from form FHWA-536.

INSTRUCTIONS FOR FORM FHWA-536

The following procedures should be was in recording

data for the items on page 1 and in providing the detail

for the supporting schedule on page 2. (Note that the

items on page 2 correspond to the items on page 1.)

Section I. Disposition of Highway-User

Revenues Available for Local Governments

Section I records the disposition of all local, State, and

Federal highway-user revenues that are available for

local government expenditure. Highway-user revenues

includes all proceeds from taxes and fees levied on the

owners and operators of motor vehicles for their use of

public roads and streets.

Item I.A. Local motor-fuel taxes— Record in this item

the disposition of all revenue received from the

imposition of local motor-fuel taxes. These revenues are

directly related to local government taxation on the

highway use of motor fuels. 

When the State mandates the imposition by local

governments of a uniform motor-fuel tax, the tax is

considered a State motor-fuel tax and should not be

included in this item. Any funds transferred to local

governments from this tax are to be reported as a State

transfer to local governments in item I.C.

Item I.A.1. Total receipts available— Enter the net

revenues from local motor-fuel taxes. Amounts should

be reported at net value, i.e., total receipts less refunds.

Item I.A.2. Minus amount used for collection

expenses.— Enter the amount of local motor-fuel tax

revenues that were deducted for the payment of collection

expenses. If collection expenses were paid from another

source, such as local general funds, no amount should be

reported in this item. 

Item I.A.3. Minus amount used for nonhighway

purposes.— Enter the amount of local motor-fuel tax

revenues that were used for nonhighway and nontransit

purposes. This includes amounts that were used for local

general purposes, other modes of transportation, or

specific nonhighway purposes, i.e., aviation, marine,

schools, etc. 

Item I.A.4. Minus amount used for mass transit.— Enter

the amount of local motor-fuel tax revenues that were

used for mass transit. 

Item I.A.5. Remainder used for highway

purposes.— Enter the amount of local motor-fuel tax

revenues that were used for highways. This should equal

net receipts less the amounts used for collection

expenses, nonhighway purposes, and mass transit. 

Item I.B. Local motor-vehicle taxes.— Record in this

item the disposition of all revenues received from the

imposition of local motor-vehicle taxes and fees. These 

revenues are directly related to local government taxation

on the operation and ownership of motor vehicles for

their use on public highways, roads and streets. Local

registration fees, plate fees, wheel taxes, etc. should all

be included. Personal property taxes and sales taxes on

motor vehicles should be reported under the instructions

for item II.A.3.b.

Any revenue retained by local governments from Stateimposed registration or driver-license fees should not be

included in this item. Such amounts are reported as State

transfers to local governments in items I.C. and II.C. 

Item I.B.1. Total receipts available— Enter the net

revenues from local motor-vehicle taxes. Amounts

should be reported at net value, i.e., total receipts less

refunds. 

Item I.B.2. Minus amount used for collection

expenses.— Enter the amount of local motor-vehicle tax

revenues that were deducted for the payment of collection

expenses. If collection expenses were paid from another

source, such as local general funds, no amount should be

reported in this item. 

Item I.B.3. Minus amount used for nonhighway

purposes.— Enter the amount of local motor-vehicle tax

revenues that were used for nonhighway and nontransit

purposes. This would include amounts used for local

general purposes, other modes of transportation, or

specific nonhighway purposes, i.e., aviation, marine,

schools, etc.

Item I.B.4. Minus amount used for mass transit.— Enter

the amount of local motor-vehicle tax revenues that were

used for mass transit. 

Item I.B.5. Remainder used for highway

purposes.— Enter the amount of local motor-vehicle tax

revenues that were used for highways. This should equal

net receipts less the amounts used for collection

expenses, nonhighway purposes, and mass transit. 

Item I.C. Receipts from State Highway-user

taxes.— Record in this item State highway-user taxes and

fees that were transferred to local governments for
11-4

expenditure. These should include amounts received

from the proceeds of State-imposed motor-fuel taxes,

motor-vehicle registration fees, driver-licenses fees and

motor-carrier taxes. For State-imposed taxes collected

by local governments, the portion of revenues that are

retained by or transferred back to local governments

should be included in this item. (See comments for items

I.A. and I.B.) 

The amounts reported in this item should be consistent

with the distributions of State highway-user revenues

provided on forms FHWA-556, FHWA-566, and

FHWA-532.

Item I.C.1. Total receipts available.— Enter all State

highway-user revenues that were transferred to local

governments. Amounts reported on form FHWA-566,

item 2.A. as deductions by county and local officials for

collection and administrative expense should be

excluded.

Item I.C.2. Minus amount used for collection

expenses.— Item is shaded. Nothing should be reported

in this item. Expenses incurred by local governments in

the collection of State-imposed motor-vehicle taxes

should be reported on form FHWA-566, item 2.A. 

Item I.C.3. Minus amount used for nonhighway

purposes.— Enter the amount of State highway-user type and amount of revenues used in financing highway

revenues that were used for nonhighway and nontransit activities. The classification of revenues should be

purposes. This includes amounts used for local general consistent with the classification and description of

purposes, other modes of transportation, or specific revenues appearing in Chapter 8.

nonhighway purposes, i.e., schools, conservation

programs, courthouses, etc.

Item I.C.4. Minus amount used for mass transit

purposes.— Enter the amount of State highway-user taxes should not be reported here. Although some State

revenues that were used for mass transit purposes. taxes are collected by local governments for the State

Item I.C.5. Remainder used for highway

purposes.— Enter the amount of State highway-user

revenues that were used for highways. This should equal

total receipts less the amounts used for mass transit and

nonhighway purposes. 

Item I.D. Receipts from Federal Highway

Administration.— Record in this item all Federal

Highway Administration (FHWA) funds that were

received by local governments. Most of these revenues

are attributable to the proceeds from Federal motor-fuel

and motor-vehicle taxes and are passed through the State

Department of Transportation to local governments. 

Item I.D.1. Total receipts available— Enter all FHWA

funds that were received by local governments. 

Item I.D.2. Minus amount used for collection

expenses.— Item is shaded. Nothing should be reported

in this item.

Item I.D.3. Minus amount used for nonhighway

purposes.— Item is shaded. Nothing should be reported. 

FHWA funds can only be used for highway and mass

transit purposes. 

Item I.D.4. Minus amount used for mass transit

purposes.— Enter the amount of FHWA funds that were

used for mass transit purposes. 

 

Item I.D.5. Remainder used for highway

purposes.— Enter the amount of FHWA funds that were

used for highway purposes. 

Section II. Receipts for Road and Street

Purposes

Section II records the revenues from all sources that were

dedicated or applied to local road and street purposes. 

The four fund sources identified are: local government,

private, State government, and Federal government. 

Within each category, an attempt is made to identify the

Item II.A. Receipts from local government

sources.— Record in this item all receipts generated from

local government sources. Revenue generated from State

government, they should be reported under State sources

in item II.C. For example, when State motor-vehicle

registration fees are collected by county or other local

officials and a share of this revenue is credited to local

road funds without first being forwarded to the State

government, those revenues are to be reported as a State

transfer to local governments and not as a local revenue

item.

Item II.A.1. Local highway-user taxes.— Record in this

item all revenues from local taxes and fees on highway

users that were used for highway, road or street purposes. 

Any revenues from State highway-user taxes are reported

in item II.C. even if collected by local governments. 
11-5

Item II.A.1.a. Motor fuel.— Enter the amount reported

on item I.A.5. This should represent the portion of net

revenues received from the imposition of local motor-fuel

taxes, that were used for road and street purposes. 

Item II.A.1.b. Motor vehicle.— Enter the amount

reported on item I.B.5. This amount represents the

portion of revenues received from local motor-vehicle

taxes, that were used for road and street purposes. 

Item II.A.1.c. Total.— Enter the sum of items II.A.1.a.

and II.A.1.b.

Item II.A.2. General fund appropriations.— Enter all

appropriations from local general funds that are used for

roads and streets. Any excess general funds should not

be included in this item as those funds are returned to the

local general fund before any disbursement for highway

purposes. Only the net amount from local general fund

sources should be reported.

Item II.A.3. Other local imposts.— Record in this item

the amount of other local taxes and fees that were

specifically dedicated and used for roads and streets. The

total reported on page 1 should match the sum of the

detail items reported on page 2. 

Item II.A.3.a. Property taxes and assessments.— Enter

revenues generated from real property taxes and special

assessments specifically levied for construction and

maintenance of roads and streets or for highway debt

service, including road district levies.

Item II.A.3.b. Other local imposts.— Enter revenues

from other local government taxes and fees, including

personal property taxes levied on motor vehicles, impact

fees, sales taxes, and any other local taxes and fees that

were used for highway purposes. The tax or fee should

be identified in the detail for this item.

Item II.A.3.b.(1). Sales taxes.— Enter revenues from

local government sales taxes. 

Items II.A.3.b.(2). through II.A.3.b.(6).— Enter revenues

from other local government taxes and fees that were

specifically allocated and used for highway purposes. 

Specify the type of tax and amount in these detail items

on page 2. 

Item II.A.3.c. Total.— Enter the sum of items II.A.3.a.

and II.A.3.b.

Item II.A.4. Miscellaneous local receipts.— Record all

local income not otherwise identified as specifically

dedicated for roads and streets, such as traffic fines and

penalties, investment income, net profit or loss from

investment transactions, surplus funds applied to local

highway activities (surplus parking or garage fees

transferred to local agencies for road and street

purposes), and other miscellaneous local receipts. The

total reported on page 1 should match the sum of the

detail items reported on page 2.

Item II.A.4.a. Interest on Investments.— Enter interest 

and investment income related to cash and investment

balances in highway, roads and street accounts and funds.

Items II.A.4.b. through II.A.4.f.— Enter amounts from

major sources of miscellaneous revenues that were used

for highway purposes. Specify the source, type and

amount of revenue in these detail items. If additional

items are needed, a supplementary schedule can be used. 

Item II.A.5. Transfers from toll facilities.— Enter fund

transfers from toll facilities to local governments. The

toll facility and amount of transferred funds should be

identified in a note.

Item II.A.6. Proceeds of sale of bonds and notes.—

Record in this item the net proceeds of debt issued by

local governments for highway purposes. Bonds are

obligations issued for a term of 2 or more years, unless

they are a part of a serial bond issue where maturities

begin in the first year after issue. Notes are issued for a

term of less than two years. 

The net proceeds are the actual cash amounts received by

local governments. Net proceeds represent the

remaining value after par value is adjusted for premiums,

discounts, and accrued interest.

When debt issues are sold and used for both highway and

nonhighway purposes, only the highway portion should

be reported. However, if the highway share of an issue is

not easily estimated, the issue should be excluded.

Item II.A.6.a. Bonds - Original Issues.— Enter the net

proceeds received by local governments from the sale of

bonds for road and street projects.

Item II.A.6.b. Bonds - Refunding Issues.— Enter the net

proceeds received by local governments from the sale of

bonds issued to retire existing road and street bonds. 

Item II.A.6.c. Notes.— Enter the net proceeds received

by local governments from the issue of notes for road and

street purposes. 

Item II.A.6.d. Total.— Enter the sum of items II.A.6.a.

through II.A.6.c.
11-6

Item II.A.7. Total.— Record in this item the total revenue Item II.C.3.a. State bond proceeds.— Enter amounts

from local sources for road and street programs. Enter received from the proceeds of bonds sold by the State. 

the sum of items II.A.1. through II.A.6.

Item II.B. Private contributions.— Enter all amounts identify the sources of other State funds transferred to

received by local governments from the private sector as local governments. 

cash or services for road and street programs. Private

participation in the public road system should be

reported in this item. Donations, such as cash or the

transfer of real property, the construction of facilities, and

the performance of support services (surveys or

preliminary and construction engineering) are ways the

private sector participates in financing public highway

projects. 

When private donations are reported in item II.B., the

amounts contributed as cash, land donations, construction

or other improvement of facilities, and the performance

of services should also be included in item III.A. 

Item II.C. Receipts from State government.— Record in

this item all State funds received by local governments

for local road and street programs. State transfers take

the form of grants-in-aid, loans, legal allocations or

shares of State-imposed taxes, or payments to local

governments under cooperative agreements. 

Funds received by local governments under a State

contract for work performed for the State should not be

reported on form FHWA-536.

When preparing information on State transfers to local

governments, the prior year's form FHWA-532 should be

examined. Item A.10. on form FHWA-532 provides

information on State transfers of State and Federal funds

to local governments for roads and streets. 

Item II.C.1. Highway-user taxes.— Enter the amount

reported on item I.C.5. This amount should represent all

transfers of State highway-user taxes and fees, including

motor-fuel taxes, motor-vehicle registration fees, motorcarrier taxes, and similar taxes and fees, that were used

for roads and streets. 

Item II.C.2. State general funds.— Enter the allocation

and transfer of State general funds to local governments

for highway purposes.

Item II.C.3. Other State funds.— Enter and identify all

other State funds transferred to local governments for

highway purposes. These include funds such as bond

sales, sales taxes, excise taxes, severance taxes, and

mineral lease taxes. 

Items II.C.3.b. through II.C.3.f.— Enter the amounts and

Item II.C.4. Total.— Enter the sum of items II.C.1.

through II.C.3.

Item II.D. Receipts from Federal Government.— Record

in this item the total funds received by local governments

from all Federal agencies for highway activities. This

includes funds from FHWA and funds from other Federal

agencies paid either directly to local governments or

indirectly through the State government. This item

should be coordinated with item A.10. on form

FHWA-532, which provides information on State

transfers of State and Federal funds to local governments

for roads and streets. 

Item II.D.1. Federal Highway Administration.— Enter

the amount reported in item I.D.5. This amount should

represent all FHWA funds passed through the State and

used by local governments for highways. 

Item II.D.2. Other Federal agencies.— Enter all funds

received from other Federal agencies either directly or

indirectly through the State. 

Item II.D.2.a. Forest Service.— Enter the amount of

funds received by local governments from the United

States Forest Service that were used for roads and streets. 

Item II.D.2.b. FEMA.— Enter the amount of funds

received by local governments from the Federal

Emergency Management Agency that were used for

roads and streets. 

Item II.D.2.c. HUD.— Enter the amount of funds

received by local governments from the United States

Department of Housing and Urban Development that

were used for roads and streets. 

Items II.D.2.d. through II.D.2.f.— Enter and identify by

agency the amounts received from all other Federal

agencies that transferred funds to local governments for

highway purposes. 

Item II.D.3. Total.— Enter the sum of items II.D.1.

through II.D.2. 

Item II.E. Total receipts.— Record in this item the total

revenue from local, private, State, and Federal sources
11-7

for road and street programs of local governments. Enter but all other administrative costs should be reported in

the sum of items II.A. through II.D. item III.A.4. 

Section III. Expenditures for Road and Capital outlay for toll facilities should not be included

Street Purposes

This section reports the expenditures of funds for

highway purposes by local governments. Local highway

expenditures are segregated into four classes: (1) local

highway disbursements, (2) debt service on local

obligations, (3) payments to State governments, and (4)

payments to toll facilities. 

The classification of expenditures should follow the

guidelines established for form FHWA-532 in Chapter 8. 

Care should be taken to segregate payments to the State

highway agency and other State agencies to avoid

duplicate recording of expenditures between different

units and levels of government. 

Form FHWA-536 is intended to capture all local

government expenditures on highways, roads and streets,

including any work that local governments perform on

State roads. 

When projects are jointly controlled and funded by local

and State governments, or co-supported, local

government expenditures should be reported on form

FHWA-536, while State expenditures are reported on

form FHWA-532. When the State retains full control

over a project, but contracts with a local government for

some services or for some of the work, those

expenditures should be reported on form FHWA-532,

not on form FHWA-536. 

The local share of matching funds for Federal-aid

projects under State contract should be shown as a

transfer to the State in item III.C.1. and not as a direct

expenditure in item III.A.

Item III.A. Local highway expenditures.— Record and

identify in this item all expenditures for highway

activities by local governments.

Item III.A.1. Capital outlay.— Record in this item

capital outlay for highways, roads, and streets by local

governments. The information provided in this item

should be consistent with the classification of capital

outlay in Chapter 8.

The cost of construction materials and supplies and, if

possible, construction machinery and equipment costs

should be included in the construction expenditures

reported. Administrative costs directly assignable to

specific capital outlay projects should be included here,

under this item. See instructions for item III.D. and

Chapter 10 for information on toll facility reporting. 

Mass transit capital outlay should also be excluded from

item III.A.1. 

Capital outlay by local governments as a part of Statelocal co-supported projects should be reported in this

item.

The total reported on page 1 for this item should match

the detail reported on page 2. 

Item III.A.1.a. Right-of-way.— Enter the following

expenditures: right-of-way administration; purchase of

land, improvements and easements; and the costs of

moving and relocating buildings, businesses, and

persons. The amount expended on the National Highway

System should be reported in column (a) while the

amount spent off the National Highway System should be

reported in column (b). 

Item III.A.1.b. Engineering.— Enter the following

expenditures: field engineering and inspections; surveys,

material testing, and borings; preparation of plans,

specifications and estimates (PS & E); and traffic and

related studies. The amount expended on the National

Highway System should be reported in column (a) while

the amount spent off the National Highway System

should be reported in column (b). 

Item III.A.1.c. Construction.— Enter all expenditures for

construction of roads and bridges. See the instructions

and examples in Chapter 8 for item A.1.c. on form

FHWA-532.

Item III.A.1.c.(1). New Facilities.— Enter expenditures

for new highways, roads, and bridges. This item

excludes expenditures on existing highways, roads,

streets, and bridges. See the instructions in Chapter 12

for item I.A. on form FHWA-534, for detailed definitions

of individual improvement types. 

Note that this detail is requested only for amounts spent

on the National Highway System. Columns (b) and (c)

are shaded for this reason.

Item III.A.1.c.(2). Capacity improvements.— Enter

expenditures for improvements that add capacity either

by adding lanes to existing facilities. Include

improvements such as relocation with added capacity,

reconstruction with added capacity, major widening,
11-8

bridge replacement with added capacity, and bridge

rehabilitation with added capacity. See the instructions

in Chapter 12 for item I.B. on form FHWA-534, for

detailed definitions of individual improvement types. 

Note that this detail is requested only for amounts spent

on the National Highway System. Columns (b) and (c)

are shaded for this reason. 

Item III.A.1.c.(3). System preservation.— Enter examples in Chapter 8 for item A.2. on form

expenditures for improvements that preserve the existing FHWA-532. 

system, without significantly adding capacity. Include

improvements such as reconstruction (that does not add The term maintenance as used on form FHWA-536 is

capacity), minor widening, restoration and rehabilitation, defined as the function of preserving and keeping the

resurfacing, bridge replacement, major bridge entire highway, including surface, shoulders, roadside,

rehabilitation, and minor bridge rehabilitation. See the structures, and traffic control devices as close as possible

instructions in Chapter 12 for item I.C. on form to the original condition as designed and constructed. 

FHWA-534, for detailed definitions of individual The maintenance function preserves and maintains a road

improvement types. or structure's serviceability. 

Note that this detail is requested only for amounts spent The costs of materials, supplies, and equipment for

on the National Highway System. Columns (b) and (c) maintenance activities should be included in the

are shaded for this reason. maintenance expenditures reported. When equipment

Item III.A.1.c.(4). System enhancement and

operation.— Enter expenditures that improve the quality

of the natural environment by reducing highway-related

pollution and by protecting and enhancing ecosystems,

and for improvements that are not directly related to the

physical structure or condition of roads and bridges. 

Include improvements such as safety, traffic

management, traffic engineering, railroad grade

crossings, vehicle weight enforcement facilities,

enhancements, and environmental projects. See the

instructions in Chapter 12 for item I.D. on form

FHWA-534, for detailed definitions of individual

improvement types. 

Note that this detail is requested only for amounts spent

on the National Highway System. Columns (b) and (c)

are shaded for this reason. 

Item III.A.1.c.(5). Total construction.— Enter all

expenditures for construction of roads and bridges. 

Column (a) should represent total construction on the

National Highway System, and should be the sum of the

amounts reported in items III.A.1.c.(1). through

III.A.1.c.(4). Total construction on roads off of the

National Highway System should be reported in

column (b). Item III.A.3.b. Snow and ice removal.— Enter the

Item III.A.1.d. Total.— Enter the sum of items II.A.1.a.,

II.A.b., and II.A.1.c.(5).

Item III.A.2. Maintenance.— Enter all expenditures that

are classified as maintenance for highways, roads, streets,

and bridges. The purpose of maintenance is to offset the

effects of deterioration from age, weather, use, damage,

failure, and design and construction faults. When

recording costs incurred by maintenance forces, any

expenditures for betterments or improvements should be

treated as capital outlay. The information provided in

this item should be consistent with the instructions and

costs cannot be assigned to capital outlay or maintenance,

those costs should be prorated between the functions. As

with construction expenditures, the maintenance

expenditures reported should include all administrative

and engineering costs directly assignable to maintenance

projects. 

Maintenance expenditures for toll facilities should not be

included on form FHWA-536. See Chapter 10 for data

reporting requirements for toll facilities.

Item III.A.3. Road and street services.— Record in this

item the operational expenditures by local governments

for roads, streets and bridges. The information provided

in this item should be consistent with the classification of

operational expenditures in Chapter 8 for item A.3. on

form FHWA-532.

Item III.A.3.a. Traffic control operations.— Enter all

expenditures for operation of traffic control and

surveillance systems that are designed to monitor and

control traffic by managing vehicle flow on streets and

highways. Such systems include traffic signal control;

roadway, tunnel and bridge surveillance and control;

electronic message boards, etc.

following types of expenditures: removal of snow from

roadway or roadside; sanding and chemical deicing

applications; and the erection and removal of snow

fences. 
11-9

Item III.A.3.c. Other.— Enter expenditures for other Item III.B.1.b. Redemption.— Enter bond redemption

road and street services including highway air quality payments at net value, i.e., the value after adjustments for

monitoring, highway beautification, mowing, and litter discounts and premiums.

removal. 

Item III.A.3.d. Total.— Enter the sum of items III.A.3.a.,

III.A.3.b., and III.A.3.c. 

Item III.A.4. General administration and

miscellaneous.— Enter general and miscellaneous

expenditures that are not readily classified as capital

outlay, maintenance, or operations. Highway planning,

traffic studies, and research activities are included in this

item. The information provided in this item should be

consistent with the instructions and examples provided in

Chapter 8 for item A.4. on form FHWA-532.

Expenses associated with the administration of mass

transit programs that are supported by local governments

are not included in this item. 

The collection and administrative costs associated with

local motor-fuel and motor-vehicle revenue collections

should not be included in this item. These costs should

appear in items I.A.2. and I.B.2.

Item III.A.5. Highway law enforcement and safety.—

Enter all highway and traffic police costs of local

governments that are associated with traffic supervision

and the enforcement of highway, traffic, and safety laws. 

When these costs are commingled with general police

activities and lose their identity, estimates should be

made. The information provided in this item should be

consistent with the instructions and examples provided in

Chapter 8 for item A.5. on form FHWA-532.

Item III.B. Debt service on local obligations.— Record

in this item the interest and redemption payments for

local highway, road, and street bonds in item III.B.1. and

notes in item III.B.2. that were issued by local

governments for highway purposes. Debt service also

includes all expenditures incidental to the sale and

retirement of highway debt. Identify only debt service on

bonds and notes reported in item II.A.6. and in section

IV.

Item III.B.1. Bonds— Record in this item debt service on

bonds. Bonds are obligations originally issued for a term

of two or more years. 

Item III.B.1.a. Interest.— Enter bond interest costs and

related financing costs such as agent fees, fiduciary

charges, printing costs, and legal opinions. 

Item III.B.1.c. Total.— Enter the sum of items III.B.1.a.

and III.B.1.b.

Item III.B.2. Notes.— Record in this item debt service on

notes. Notes are obligations originally issued for a term

of less than 2 years. 

Item III.B.2.a. Interest.— Enter note interest costs and

related financing costs such as agent fees, fiduciary

charges, printing costs, and legal opinions. 

Item III.B.2.b. Redemption.— Enter note redemption

payments at net value, i.e., the value after adjustments for

discounts and premiums.

Item III.B.2.c. Total.— Enter the sum of items III.B.2.a.

and III.B.2.b.

Item III.B.3. Total.— Enter the sum of items III.B.1.

and III.B.2.

Item III.C. Payments to State for highways.— Enter the

amount of any funds transferred to the State for highway,

road, and street purposes. These payments can be for

reimbursements, repayments, or contributions. This item

should be coordinated with item B.8. on form

FHWA-531.

Item III.D. Payments to toll facilities.— Enter the

amount of any funds transferred to either a State or local

toll facility. The toll facility and amount transferred

should be identified in a note.

Item III.E. Total expenditures.— Record in this item the

total disbursements by local governments for road and

street programs. Enter the sum of items III.A.

through III.D.

Section IV. Local Highway Debt Status

This section records the status and change in local

government highway debt. All amounts are recorded at

par value, i.e., the face amount or value. See Chapter 9

for a general description and instructions for reporting

highway debt information.

Item IV.A. Bonds (Total).— Enter the following

information for all road and street bonds: bonds

outstanding at the beginning of the year, bonds issued
11-10

during the year, bonds redeemed during the year, and

bonds outstanding at the end of the year.

Item IV.A.1. Bonds (Refunding Portion).— Enter the 

portion of bond issues reported in item IV.A. that were

involved in refunding. Enter the portion of bonds retired

in item IV.A. that were refunded All entries are at par

value.

The par value amount of refunding bonds issued may

differ from the par value amount of bonds refunded. For

example, the net proceeds of a heavily discounted

refunding issue would only be sufficient to refund a

lessor par value amount of outstanding bonds. For

another example, an outstanding bond that carried a large

call premium would need a larger par value refunding

bond to provide enough funds for the higher net

redemption amount.

Item IV.B. Notes (Total).— Enter the following

information for all road and street notes: notes

outstanding at the beginning of the year, notes issued

during the year, notes redeemed during the year, and

notes outstanding at the end of the year.
12-1

CHAPTER 12

REPORT IDENTIFYING STATE HIGHWAY CAPITAL OUTLAY

AND MAINTENANCE EXPENDITURES

This chapter presents the procedures for preparing form developing the individual FHWA-534 forms. HPMS

FHWA-534, State Highway Capital Outlay and data will assist in identifying the functional system and

Maintenance Expenditures. Form FHWA-534 is jurisdiction of the mileage for the capital outlay and

designed to expand on the highway capital outlay and maintenance expenditures reported on form FHWA-534.

maintenance expenditures by State governments, as

reported on form FHWA-532. It classifies these

expenditures by area type, functional system, on or off the

National Highway System (NHS), and type of

improvement. Information is reported for all roads on

the NHS, and all other arterials and collectors. Reporting

is optional for roads and streets functionally classified as

local that are off the NHS. Roads and streets functionally

classified as local are not to be confused with roads and

streets that are under the jurisdictional control of local

governments.

Form FHWA-534 is used to measure State investment

priorities for the National Highway System, and for the

arterial and collector functional systems. The FHWA

uses this information in conjunction with the Highway

Performance Monitoring System (HPMS) to develop

relationships between system condition and performance,

and expenditures on these functional systems. The

information from form FHWA-534 permits the FHWA to

determine trends in investment types by functional

system, both on and off the NHS. By analyzing

information on relationships between highway

performance and condition and State investment patterns,

judgments are made on future highway needs and the

appropriate Federal role. 

IMPORTANT GENERAL CONSIDERATIONS

Relationship between FHWA-534 and FHWA-532.— functional system. As included on form FHWA-532,

Amounts on form FHWA-534 correspond to highway special nontoll highway authorities should be included

capital outlay and maintenance expenditures reported on within the appropriate functional system on form

form FHWA-532. The sum of State FHWA-534 forms FHWA-534.

should equal the sum of items A.1., A.2., A.7., and A.9.

on form FHWA-532, less any expenditures on the roads In the upper right corner of the FHWA-534 form, there

and streets functionally classified as local that are not on are three separate areas of information for the State to

the NHS. identify. These areas are:

While there is a direct relationship between form

FHWA-534 and expenditures on form FHWA-532, the

FHWA-534 form is not considered an accounting report.

Since form FHWA-534 was developed in conjunction

with the HPMS, close coordination with those in the

State who prepare HPMS data is desirable when

Toll facility data.— Toll facility data should be identified

and reported separately from other State government

highway capital outlay and maintenance expenditure data

being reported on form FHWA-534.

A State has several options in reporting toll facility

expenditure data by functional system: (1) States that

provide an annual financial report for their toll facilities

do not need to prepare form FHWA-534 if the annual

report contains sufficient detail to identify capital outlay

and maintenance expenditures by the criteria contained in

this chapter; (2) States that provide their toll facility data

on form FHWA-539 (refer to Chapter 10-5) may use the

simplified reporting in the page 2 detail section on that

form or they may prepare form FHWA-534 as necessary

for each facility; and (3) States that elect to report toll

facility data on forms FHWA-531 and FHWA-532 need

to prepare form FHWA-534 for each facility or they can

use the simplified reporting in the page 2 detail section

on form FHWA-539. 

Instructions on local toll facility reporting are included at

the end of Chapter 10. 

INSTRUCTIONS FOR FORM FHWA-534

One FHWA-534 form is needed for reporting each

State.— Record the full State name.

Year ending.— Record the last month of the reporting

year and the reporting year (mm/yy) selected for each

form FHWA-534. The reporting year (fiscal or calendar)

must be the same as the reporting year for capital outlay
12-2

and maintenance information reported on form on an Interstate highway should be reported as

FHWA-532 (see Chapter 1). "urbanized < 200,000, Interstate" and coded as 311.

Area type and functional system.— Record the functional

system for the highways and roads for which 

expenditures are being reported. The area and functional

system is to be reported by name or code. Functional

systems are defined in the 1989 FHWA reference

manual, Highway Functional Classification: Concepts,

Criteria, and Procedures. 

Area type designations and codes are:

Code Description

1 Rural

2 Small Urban (population of 5,000 to 49,999)

3 Urbanized Area (population less than 200,000)

4 Urbanized Area (population equal to or greater

than 200,000)

Functional system descriptions and codes are: all expenditures for projects not on the NHS. 

Code Description

Rural Functional Systems

Principal arterial system:

01 Interstate

02 Other principal arterials

06 Minor arterial system

Collector system:

07 Major collectors

08 Minor collectors

09 Local system

Small Urban and Urbanized Functional Systems

Principal arterial system:

11 Interstate

12 Other freeways and expressways

14 Other principal arterials

16 Minor arterial system

17 Collector system

19 Local system

Thus, a capital expenditure on a project in a rural area on

a minor arterial should be reported as "rural minor

arterial" and coded as 106. An expenditure on a project

in an urbanized area of less than 200,000 in population

Functional codes 09 and 19 are provided for the local

system (codes 109, 219, 319 and 419). Unless local

system expenditures are on the NHS, these data are

optional.

 

Data columns.— The three columns labeled "On

National Highway System", "Off National Highway

System", and "Total" are provided to report capital outlay

and maintenance data. 

On National Highway System.— Record in this column

all expenditures for projects on the NHS. For the four

FHWA-534 forms reporting data on the Interstate system

(codes 101, 211, 311, and 411), all expenditures should

be reported in this column, because the entire Interstate

system is on the NHS. 

Off National Highway System.— Record in this column

Total.— Record in this column the total for expenditures

both on and off the NHS. When all FHWA-534 forms

are summarized, the only difference between amounts

reported for capital outlay and maintenance expenditures

by the State on form FHWA-534 and similar entries on

form FHWA-532 should be State expenditures on nonNHS roads functionally classified as local. Include

expenditures on NHS roads that are functionally

classified as local on form FHWA-534. 

Expenditures for capital outlay by improvement

types.— Enter information on capital outlay for the

indicated functional system according to the definitions

provided for each item. The information reported should

be consistent with information reported in items A.1.,

A.7.a., and A.9.a. on form FHWA-532 (see Chapter 8).

Item I. Capital Outlay.— Record for each functional

system the expenditures by improvement type for the

categories of: 1) new facilities, 2) capacity additions to

existing facilities, 3) system preservation, and 4) system

enhancement and operation. 

Item I.A. New Facilities.— Record expenditures for new

highways, roads, streets, and bridges. This item excludes

expenditures on existing highways, roads, streets, and

bridges. Record expenditures by improvement type for:

1) right-of-way; 2) engineering costs; 3) construction of

new highways, roads, and streets; 4) construction of new

bridges.
12-3

Item I.A.1. Right-of-way costs.— Enter expenditures for: I.B.4. Reconstruction with Added Capacity.— Enter

right-of-way administration; purchase of land, expenditures for construction on the approximate

improvements and easements; and the costs of moving alignment of an existing route where the old pavement

and relocating buildings, businesses, and persons. structure is substantially removed and replaced. 

Item I.A.2. Engineering Costs.— Enter expenditures for:

construction engineering; field engineering and

inspections; surveys, material testing, and borings;

preparation of plans, specifications and

estimates (PS & E); and traffic and related studies.

Item I.A.3. Construction of New Roads.— Enter

expenditures for construction of a new facility that will

not replace or relocate an existing facility. A new facility

will provide: (1) a facility where none existed, or (2) an

additional and alternate facility to an existing facility that

will remain open and continue to serve through traffic.

Item I.A.4. Construction of New Bridges.— Enter

expenditures for construction of a new bridge that will

not replace or relocate an existing bridge. A new bridge Capacity.— Enter expenditures for the total replacement

will provide: (1) a bridge where none existed, or (2) an of a structurally deficient or functionally obsolete bridge

additional and alternate bridge to an existing bridge or with a new bridge in the same traffic corridor. The

ferry that will remain open and continue to serve through replacement bridge is designed for an increased traffic

traffic. flow. Construction of a dual structure to alleviate a

Item I.A.5. Total.— Enter the sum of items I.A.1 to

I.A.4.

I.B. Capacity Additions to Existing Facilities.— Record

all expenditures on highways, roads, streets, and bridges

that includes the addition of lanes to an existing facility. 

Record expenditures by improvement types for: 1) rightof-way; 2) engineering costs; 3) relocation with added

capacity; 4) reconstruction with added capacity; 5) major

widening; 6) bridge replacement with added capacity;

and 7) bridge rehabilitation with added capacity.

I.B.1. Right-Of-Way Costs.— Enter expenditures for:

right-of-way administration; purchase of land,

improvements and easements; and the costs of moving

and relocating buildings, businesses, and persons.

I.B.2. Engineering Costs.— Enter expenditures for:

construction engineering; field engineering and

inspections; surveys, material testing, and borings;

preparation of plans, specifications and

estimates (PS & E); and traffic and related studies.

I.B.3. Relocation with Added Capacity.— Enter

expenditures for construction of a highway, road, or

street with additional lanes on a new location that

replaces an existing route. The new facility carries all the

through traffic with the previous facility closed or

retained as a land-service road only.

Reconstruction results in additional capacity through

widening to provide additional through lanes, dualizing,

adding or revising interchanges, replacing other highway

elements such as a grade separation to replace an existing

grade intersection, or otherwise improving the existing

facility without changing the basic character of the

facility.

I.B.5. Major Widening.— Enter expenditures for the

addition of lanes or dualization of an existing facility

where the existing pavement is salvaged. Also included,

where necessary, is the resurfacing of existing pavement

and other incidental improvements such as drainage and

shoulder improvements.

I.B.6. Bridge Replacement with Added

capacity deficiency is also included. The replacement

bridge carries all of the through traffic with the old bridge

retained for local service only, removed, closed, or

converted to a purpose other than carrying through

traffic. 

I.B.7. Bridge Rehabilitation with added

Capacity.— Enter expenditures for major work required

to restore the structural integrity of a bridge as well as

work necessary to correct major safety defects. Bridge

deck replacement (both partial and complete) and the

widening of bridges to specified standards by widening

lanes or adding lanes are included. Construction of a

dual structure to alleviate a capacity deficiency is also

included when the old structure is included in the dual

structure. 

I.B.8. Total.— Enter the sum of items I.B.1 to I.B.7.

I.C. System Preservation.— Record expenditures for

activities which preserve and enhance the performance of

highways, roads, and bridges. These can include

infrastructure repair, reconstruction, and rehabilitation to

maintain and maximize performance of the existing

system. These activities are typically carried out on a

continuous and timely basis as part of a State highway

agency’s maintenance program. Record expenditures by

improvement types for: 1) right-of-way; 2) engineering

costs; 3) relocation with no added capacity;

4) reconstruction with no added capacity; 5) restoration,
12-4

rehabilitation, and resurfacing; 6) minor widening,

7) bridge replacement with no added capacity; and

8) bridge rehabilitation with no added capacity.

I.C.1. Right-of-Way Costs.— Enter the following

expenditures: right-of-way administration; purchase of

land, improvements and easements; and the costs of

moving and relocating buildings, businesses, and

persons.

I.C.2. Engineering Costs.— Enter the following of a structurally deficient or functionally obsolete bridge

expenditures: construction engineering; field engineering with a new bridge in the same traffic corridor. The new

and inspections; surveys, material testing, and borings; bridge does not have an increased capacity over the

preparation of plans, specifications and previous facility. The new bridge carries all of the

estimates (PS & E); and traffic and related studies. through traffic with the old bridge removed, closed or

I.C.3. Relocation with No Added Capacity.— Enter

expenditures for construction of a facility on a new

location that replaces an existing route. The new facility I.C.8. Bridge Rehabilitation With No Added

does not have an increased capacity over the previous

facility. The new facility carries all the through traffic

with the previous facility closed or retained as a landservice road only.

I.C.4. Reconstruction with No Added Capacity.— Enter

expenditures for construction on the approximate

alignment of an existing route where the old pavement

structure is substantially removed and replaced.

Reconstruction does not result in additional capacity. It

may involve widening the existing lanes or shoulders, but

would not add to the number of through lanes. 

Improvements on the existing facility would not change

its basic character. 

I.C.5. Restoration, Rehabilitation, and structure or condition of roads and bridges. 

Resurfacing.— Enter expenditures for work required to

return an existing pavement (including shoulders) to a I.D.1. Engineering Costs.— Enter the following

condition of adequate structural support or to a condition expenditures: construction engineering; field engineering

adequate for placement of an additional stage of and inspections; surveys, material testing, and borings;

construction. There may be some upgrading of unsafe preparation of plans, specifications and

features or other incidental work in conjunction with estimates (PS & E); and traffic and related studies.

restoration, rehabilitation, and resurfacing. Typical

improvements would include replacing spalled or

malfunctioning joints; substantial pavement stabilization

prior to resurfacing; grinding or grooving of rigid

pavements; replacing deteriorated materials; reworking

or strengthening bases or subbases; and adding

underdrains. Where surfacing is constructed by a

separate project as a final stage of construction, the type

of improvement should be the same as that of the

preceding stage; i.e., new construction, relocation,

reconstruction, minor widening, etc.

I.C.6. Minor Widening.— Enter expenditures for

widening the lanes or shoulders of an existing facility

without adding more through lanes. In many cases, the

improvement includes only the resurfacing of the existing

pavement and other incidental improvements such as

shoulder and drainage improvements. The existing

pavement is salvaged.

I.C.7. Bridge Replacement With No Added

Capacity.— Enter expenditures for the total replacement

converted to a purpose other than carrying through

traffic. 

Capacity.— The major work required to restore the

structural integrity of a bridge as well as work necessary

to correct major safety defects. Bridge deck replacement

(both partial and complete) and the widening of bridges

to specified standards are included. Construction of a

dual structure to alleviate a capacity deficiency is not

included.

I.C.9. Total.— Enter the sum of items I.C.1 to I.C.8.

I.D. System Enhancement and Operation.— Record

expenditures that improve the quality of the natural

environment by reducing highway-related pollution and

by protecting and enhancing ecosystems, and for

improvements that are not directly related to the physical

I.D.2. Safety Improvements.— Enter expenditures for a

project or a significant portion of a project that provides

features or devices to enhance safety. 

I.D.3. Traffic management/traffic engineering.— Enter

expenditures for traffic operation improvements which

are designed to reduce traffic congestion and to facilitate

the flow of traffic, both people and vehicles, on existing

systems, or to conserve motor fuels; or which are

designed to reduce vehicle use or to improve transit

service. Expenditures for the following types of systems

would be included in this item: intelligent transportation
12-5

infrastructure (ITI), traffic signal controls, freeway

management, incident management, road and bridge

surveillance and control, electronic message boards,

video monitoring, motorist information radio, freeway

ramp control, etc.

I.D.4. Environmental Improvements.— Enter

expenditures for environmentally related features. This

category includes improvements that do not provide any

increase in the level of service, in the condition of the

facility, or in safety features. Typical improvements

which fall in this category would be noise barriers,

beautification, and other environmentally related features

not built as a part of the above identified improvement

types.

I.D.5. Other Enhancements.— Enter expenditures for 

improvements that are not categorized above, i.e., 

construction of bicycle and pedestrian facilities such as

bike paths, bicycle rest areas, pedestrian overpasses, etc.

I.D.6. Total.— Enter the sum of items I.D.1 to I.D.5.

I.E. Total Capital Outlay.— Enter the sum of items

I.A.5, I.B.8, I.C.9, and I.D.6.

Maintenance expenditures.— Record information on

maintenance expenditures for the reported functional

system according to the maintenance definition provided

in Chapter 8. The information reported should be

consistent with information reported in items A.2.,

A.7.b., and A.9.b. on form FHWA-532. 

Item II. Maintenance costs.— Record all expenditures

for maintenance for this functional system. Maintenance

information should be reported in all three columns on

form FHWA-534.
13-1

CHAPTER 13

OTHER INFORMATION NEEDS

The total range of FHWA forms contained in A Guide to

Reporting Highway Statistics together with the Highway

Performance Monitoring System (HPMS), constitute a

very comprehensive system of reporting highway

statistics. Even so, it does not fully account for all the

information that the FHWA needs to fulfill its objectives. 

This chapter outlines the types of additional information

that State agencies and units— particularly the planning

division of the State highway agency or DOT— should try

to systematically obtain and forward to the Washington

Headquarters. This important additional information

includes: (1) supplemental tabulations concerning motor Manual. The HPMS Field Manual provides directions

fuel, motor vehicles, and driver licenses; on the reporting of areawide and site-specific vehicle

(2) miscellaneous traffic data; (3) State executive classification data. 

budgets; (4) certain published reports; (5) State highway

and taxation laws; and (6) reports of special Truck weight data are collected at continuous

transportation authorities. permanent installations and portable sites for a variety

Supplemental tabulations.— In the normal course of

preparing the FHWA reports, most States compile

supplemental tabulations and statements concerning

motor fuel, motor vehicles, and driver licenses. This

supplemental information reflects detail not ordinarily

provided on the reporting forms, but which can be

extremely helpful in understanding transactions and

clarifying entries that might otherwise require Traffic Monitoring Guide.

correspondence. Such tabulations should accompany the

annual FHWA reports wherever appropriate.

Traffic data.— Three types of data are collected: 1) traffic Highway Policy Information when released. These are

volume, 2) vehicle classification, and 3) truck the budgets prepared for presentation to the State

weigh-in-motion (WIM) data. All submitted traffic data legislature and usually printed and given general

should conform to the reporting instructions and formats distribution. They normally contain budget information

provided in the current edition of the Traffic Monitoring

Guide (TMG). Copies of traffic flow maps, annual

reports, program documentation, and other traffic related

publications produced by the States should be forwarded

to the Travel Monitoring Division (HPPI-30) of the

Office of Highway Policy Information as they become

available. 

Traffic volume data are used to monitor national traffic

growth occurring on the nation’s highways, and are

reported monthly in the Traffic Volume Trends report. 

This report provides an early indicator of the changes

occurring in travel at the national and regional levels. 

The data are collected continuously by automatic traffic Legislative acts.— Copies of enacted legislation

recorders (ATRs) monitored by State and local highway concerning highway taxation and finance should be

agencies. Copies of the continuous traffic volume data forwarded to HPPI-10. This information serves as

collected by the permanent ATRs should be sent

monthly to HPPI-30 within 20 days after the close of

the month for which the data were collected. 

Vehicle classification data are collected annually by the

States as part of the Traffic Monitoring System (TMS)

program. These data are used to develop the “percent

trucks” sample item for the Highway Performance

Monitoring System (HPMS) and also to complete the

HPMS summary screens as described in chapter III of

the Highway Performance Monitoring System Field

of purposes including research, monitoring of weight

for pavement design and management, and for

enforcement of weight limits on highways and bridges. 

The site-specific truck WIM and station description

data should be sent to the Travel Monitoring Division

(HPPI-30) using the FHWA data formats by June 15th

of the year following the year for which the data are

collected. Additional information is found in the

Budgets.— Copies of the annual or biennial State

executive budgets should be provided to the Office of

not only for the State highway or transportation agency,

but also for all other executive departments. They

provide a valuable source of information on actual

revenues and expenditures for the current and prior

years.

Published reports.— Most States publish annual or

biennial reports of the major departments. Copies of

these reports should be provided to HPPI-10 as they

become available. Any State highway statistical

publications should also be sent to the Office of

Highway Policy Information.
13-2

reference material until bound volumes of the statutes are

published. Those States that publish a compendium of

highway laws from time to time are requested to provide

a copy to the Office of Highway Policy Information.

Reports of special transportation authorities.—

Information about special authorities or public

corporations that finance, build, or operate highway or

mass transportation facilities is essential in measuring the

total highway and mass transportation activity within a

State. No information is sought for privately owned and

operated facilities. Data on the finances and programs of

special transportation authorities should be provided to

HPPI-10, including when a new authority is established

or debt is refinanced. Copies of the enabling legislation,

feasibility reports, bond prospectus, trust agreement and

operating statements should also be furnished. Periodic

reports that present the results of the audit of accounts or

other financial data should be provided as they become

available.
A-1

APPENDIX A

RELATIONSHIPS AMONG REPORTING FORMS

This appendix presents a list of cross checks that should

be made to ensure that the information reported is

consistent among the various forms. It is not an

exhaustive list, but is intended as an aid to accurate

reporting.

FORM FHWA-531

Item A. Balances on hand at beginning of year.— The

current year's opening balance should agree with the

amount reported on the prior year's form FHWA-532,

item C., unexpended balances at end of year. Any large

differences should be explained in a note.

Item B.1. State motor-fuel taxes.— The amount reported

in item B.1.a. on page 1 should agree with form

FHWA-556, item 8.k. Items B.1.b. through B.1.e. on

page 1 should be used to explain any differences between

the amount reported on form FHWA-556, item 8.k. to

item B.1.a., page 1 and the amount report in item B.1.,

page 2. Some common explanations for difference

between forms and items are timing differences, funds in

transit, and exclusion of certain funds from form

FHWA-531.

Item B.2. State motor vehicle, driver license, and motor

carrier taxes and fees.— The amount reported in

item B.2.a. on page 1 should agree with FHWA-566,

item 8.k. Items B.2.b. through B.2.e. on page 1 should

be used to explain any differences between the amount

reported on form FHWA-566, item 8.k. to item B.2.a. on

page 1, and the amount report in item B.2. on page 2. 

Some common explanations for difference between

forms and items are timing differences, funds in transit,

and exclusion of certain funds from form FHWA-531.

Item B.9. Proceeds of sale of bonds.— The amount

reported should agree with FHWA-541, item 9.A.7.

allotment of proceeds of sales for highways and mass

transit. Typically, this will also equal form FHWA-541,

item 8.D. net proceeds. A common error is to report the

par value of the issue from form FHWA-541, item 8.A.

instead of net proceeds.

Item C. Interfund transfers, in.— The amount reported

must equal form FHWA-532, item B. interfund transfers,

out.

Item D. Total funds to be accounted for.— The amount

shown must equal form FHWA-532, item D.

FORM FHWA-532

Item A.1. Capital outlay on State system.— This item

should report at least as much as form FHWA-531,

item B.6. funds from FHWA.

Item A.1. Capital outlay on State system;

item A.7.a. capital outlay on other State roads not on

State system; and item A.9.a. capital outlay on local

administered roads.— The combination of these three

items for capital outlay should be greater than or equal to

the sum of item I.D. on all State government FHWA-534

report forms. 

Item A.2. Maintenance of State system; item A.7.b. 

maintenance expenditures on other State roads not on

State system; item A.9.b. maintenance expenditures on

local roads and streets.— The combination of these three

items for maintenance should be greater than or equal to

the sum of item II. on all State government FHWA-534

report forms.

Item A.6.c. Debt service on State obligations for

highways-retirement by current income.— The amount

reported should agree with the amount reported on form

FHWA-542, column (5) unless the State pays a premium

or discount. If the State pays something other than the

par value, the amount of the premium or discount should

be shown in a footnote. A common error is to include

debt service expenditures on State obligations for mass

transit which should be reported in form FHWA-532,

item A.11.d.

Item A.6.c. Debt service on State obligations for

highways-retirement by refunding.— The amount

reported should agree with the amount reported on form

FHWA-542, column (6) unless the State pays a premium

or discount. If the State pays something other than the

par value, the amount of the premium or discount should

be shown in a footnote. 

Item B. Interfund transfers, out.— The amount reported

must equal form FHWA-531, item C., interfund

transfers, in.
A-2

Item D. Total funds accounted for.— The amount shown

must equal form FHWA-531, item D.

FORM FHWA-536

Items II.C.4. Total receipts from State government, and

II.D.3. Total receipts from Federal Government.— The

amounts reported in these two items should include the

amounts reported on form FHWA-532, item A.10. as

grants-in-aid to local governments, for the corresponding

year. All amounts reported on form FHWA-532,

item A.10. should be included on form FHWA-536

although some may be deducted in the disposition section

on form FHWA-536 in items I.C.3., I.C.4, or I.D.4., and

identified as used for mass transit or nonhighway

purposes. 

Items II.C.4. and II.D.3. may exceed form FHWA-532,

item A.10. For example, some Federal and State

agencies transfer funds for roads and streets to local

governments without passing them through the State Column (5) Current redemption during year.— This

DOT or reporting agency. Also, some Federal and State item should agree with form FHWA-532, item A.6.c.

governments transfers funds to local governments unless the State paid a premium or discount.

through multi-purpose block grants, local governments

may subsequently chose to use those funds for roads and

street projects. 

Item II.A.6. Proceeds of sale of bonds and notes.— The

amounts reported should be in relative agreement with

amounts reported in item IV., amount issued column. 

Note: The amounts reported in item II.A.6. and item IV

do not have to be equal. Net proceeds should be investments.— This item equals form FHWA-531,

reported in item II.A.6 and par value should be reported item.B.10.a.

in item IV.

Item III.B. Debt service on local obligations.— The This item equals form FHWA-532, item A.6.a.

amounts reported should be in relative agreement with

amounts reported in item IV., redemptions column. 

Note: The amounts reported in item III.B. and item IV.

do not have to be equal. Net redemptions should be

reported in item III.B. and par value should be reported

in item IV.

Item III.C. Payments to State for highways.— This item

should agree with the amount shown on form

FHWA-531, item B.8. for the corresponding year.

 

Item IV. Local highway debt status, opening debt

column.— The amount reported should agree with the

prior year's closing debt. Any large differences should be

explained in a note.

FORM FHWA-541

Item 8.A. Par value of sale.— This item should equal

form FHWA-542, column (4).

Item 9.C. Total allotments of proceeds of sales — This

item should equal form FHWA-531, item B.9. Total

allotments of bond proceeds usually equals the net

proceeds of bond sales in item 8.D. 

Form FHWA-542

Column (3) Amount outstanding, beginning of year.—

This item should agree with prior year's form

FHWA-542, column (7), amount outstanding, end of

year.

Column (4) Amount issued during year.— This item

should agree with form FHWA-541, item 8.A.

Column (6) Refunding redemption during year.— This

item should agree with form FHWA-532, item A.6.d.

unless the State paid a premium or discount.

OPTIONAL FORM FHWA-543

Item 2.D. Net earnings of sinking fund or

Item 3.A. Bond administrative and finance charges.—

Item 3.B. Interest payments.— This item equals form

FHWA-532, item A.6.b.

Item 3.C.(1) Redemption payments-principal.— This

item equals form FHWA-542, column (5) plus FHWA542, column (6).

Item 3.C.(3) Net redemption payments.— This item

equals form FHWA-532, item A.6.c. plus item A.6.d.

Form FHWA-566

Item 1.A. Receipts, FHWA-561.— The receipts reported

in column (A) should agree with the amount reported on

form FHWA-561, section IV, grand total, all receipts.
A-3

Item 1.B. Receipts, FHWA-562.— The receipts reported Item 6. Balance undistributed at end of previous

in column (B) should agree with amount reported on

form FHWA-562, item H.

Item 1.C. Receipts, FHWA-571.— The receipts reported difference should be provided.

in column (C) should agree with the amount reported on

form FHWA-571, item 9, column (7).

Item 4. Deductions by State collecting agency for

operation and administration.— The amount shown

should agree with the breakout provided on form

FHWA-566, item 10. Item 4. and item 10.I. can disagree

if: (1) total collections are deposited in one fund and

expenses of the collecting agency are paid or

appropriated from this fund which would result in no

entry in item 4.; or (2) the amount reported in item 4.

contains amounts deducted from collections to defray

costs and item 10. contains supplemental funds such as

general funds. In either case, a note should be provided

explaining the difference between the two items.

year.— The amount reported should agree with the prior

year's form FHWA-566, item 9, balance undistributed at

end of year. If the two do not agree, a note explaining the
B-1

APPENDIX B

DATA REPORTING TEMPLATES AND ELECTRONIC DATA TRANSMISSION

FHWA encourages the use of microcomputers to prepare the various report forms contained in A Guide to Reporting

Highway Statistics and electronic transmission of those report forms. 

SPREADSHEET TEMPLATES FOR REPORT FORMS

Spreadsheet templates using Lotus 1-2-3 and Excel are available for all of the report forms covered in this Guide. These

microcomputer templates provide a convenient alternative to completing the printed report forms at the end of certain

chapters. 

A Guide to Reporting Highway Statistics and the accompanying templates are available on the Internet, within the Office

of Highway Policy Information’s Web Site: http://www.fhwa.dot.gov/ohim. The Guide is in WordPerfect and can also

be downloaded along with the spreadsheet templates. The electronic versions of the report forms can be electronically

sent to headquarters via e-mail or by floppy disk.

ELECTRONIC DATA REPORTING

Report forms prepared using the spreadsheet templates may be transmitted to FHWA electronically via the Internet or via

the agency email system. FHWA division offices or others with access may use the agency electronic mail system and

direct the reports to the mailbox HWYSTATS. 
C-1

APPENDIX C

REPORTING BY U.S. TERRITORIES AND PUERTO RICO

The following instructions apply only to the simplified

form, Territorial Highway Statistics, included in this

appendix. For specific information on the individual

categories of information requested, reference should be

made to the individual chapters in this Guide. the aviation gasoline taxes dedicated for airport

Item I. Motor-fuel consumption.— Record in this item must have been used for nonhighway purposes and the

certain basic information on motor-fuel tax rates and the receipts must be dedicated for nonhighway purposes.

amount of gallons taxed. As used here, motor fuel

includes gasoline, gasohol, diesel, and liquefied

petroleum gases (LPG).

Item I.A.1. Territorial motor-fuel tax rate on fuel decals, and other miscellaneous fees that are

December 31-gasoline.— Enter the tax rate for highway

use of gasoline.

Item I.A.2. Territorial motor-fuel tax rate on

December 31-diesel and LPG.— Enter the tax rate for

highway use of diesel and LPG.

Item I.B.1. Net volume taxed at prevailing rates.— Enter

the amount (in thousands of gallons or liters) of motor

fuel that was taxed at the motor-fuel tax rates reported in

items I.A.1. and I.A.2. The unit of measurement used for

this item should be identified in a note.

Item I.B.2. Net volume taxed at other rates.— Enter the

amount (in thousands of gallons or liters) of motor fuel

that was taxed at a rate other than the motor-fuel tax rates

reported in items I.A.1. and I.A.2. The unit of

measurement used for this item should be identified in a

note.

Item I.B.3. Total.— Enter the sum of items I.B.1. and

I.B.2. Identify the unit of measurement used for this item

in a note.

Item II. Motor-fuel tax receipts.— Record in this item

certain basic information on the receipts from motor-fuel

taxation. 

Item II.A. Gross volume receipts.— In thousands of

dollars, enter the total amount of receipts from the

taxation of gasoline, diesel and LPG. Include proceeds of

taxes levied per unit of volume. Do not include taxes

levied as a percentage of price. Item III.F. Motorcycles.— Enter the number of public,

Item II.B.1. Less: refunds paid.— In thousands of

dollars, enter the total amount of refunds of motor-fuel

taxes paid.

Item II.B.2. Less: dedicated volume tax.— In thousands

of dollars, enter the total amount of motor-fuel taxes on

nonhighway use of fuel that are specifically dedicated to

nonhighway activities. For example, enter in this item

improvements. To be included in this item, the fuel taxed

Item II.C. Other receipts.— In thousands of dollars,

enter the total amount of other highway motor-fuel

related taxes or fees. Motor-fuel inspection fees, motorincluded in motor-fuel tax laws should be included in this

item.

Item II.D. Net total receipts.— Enter the sum of

items II.A. and II.C. less items II.B.1. and II.B.2.

Item III. Motor-vehicle registrations.— Record in this

item the number of public, private, and commercial

motor-vehicle registrations for each of the categories

listed below. Registrations for motor-vehicles which are

not intended for use on highways, roads, and streets

should be omitted. For example, agricultural tractors and

other agricultural vehicles which are not used on the

public road system should be omitted.

Item III.A. Automobiles.— Enter the number of public,

private, and commercial automobiles registered during

the reporting year. 

Item III.B. Buses.— Enter the number of public, private,

and commercial buses registered during the reporting

year. 

Item III.C. Trucks.— Enter the number of public,

private, and commercial trucks registered during the

reporting year. 

Item III.D. Total.— Enter the sum of items III.A.

through III.C.

Item III.E. Trailers.— Enter the number of public,

private, and commercial trailers registered during the

reporting year. 

private, and commercial motorcycles registered during

the reporting year. 
C-2

Item IV.A. Learner permits.— Enter the number of

learner permits issued during the year to beginner

drivers.

Item IV.B. Operator licenses issued.— Enter the number

of operator licenses issued during the year for the

operation of private motor vehicles.

Item IV.C. Chauffeur licenses issued.— Enter the

number of chauffeur licenses issued during the year for

the operation of motor vehicles. Chauffeur licenses are

issued for operating motor vehicles for hire or operating

trucks.

Item IV.D. Motorcycle licenses issued.— Enter the

number of motorcycle licenses issued during the year. 

Item IV.E. Driver licenses in force.— Enter the net

number of driver licenses in force as of the end of the

reporting year. Licenses in force should exclude: learner

permits, motorcycle only licenses, limited use permits,

canceled licenses, and revoked licenses. Only one driver

license should be counted for each driver.

Item V. Motor-vehicle tax receipts.— Record in this item

information on the taxation of motor vehicles as

categorized below. Item VII. Highway disbursements.— Record in this item

Item V.A. Registration fees.— In thousands of dollars,

enter the total amount of receipts from motor-vehicle

registrations.

Item V.B. Driver licenses.— In thousands of dollars,

enter the total amount of receipts from driver license fees.

Item V.C. Motor carriers.— In thousands of dollars,

enter the total amount of receipts from the taxation of

motor carriers and for-hire vehicles. For example,

distance taxes, weight-distance taxes, gross receipts

taxes, axle fees, and other operational motor-carrier taxes Item VII.C. Administration.— In thousands of dollars,

and fees should be included in this item. enter the total of administrative and planning

Item V.D. Other.— In thousands of dollars, enter the

total amount of receipts from other taxes and fees on

motor vehicles. For example, dealer licenses, title fees, Item VII.D. Highway law enforcement.— In thousands

duplicate registration fees, duplicate driver license fees, of dollars, enter the total of highway law enforcement and

vanity plates, vehicle inspection fees, and transfer fees safety expenditures for highways, roads, and streets. 

should all be reported in this item. Expenditures for criminal law enforcement should be

Item V.E. Total.— Enter the sum of items V.A.

through V.D. Item VII.E. Total.— Enter the sum of items VII.A.

Item VI. Highway receipts.— Record in this item

information on the net revenues for highway, road, and

street programs during the reporting year as categorized

below.

Item VI.A. Highway-user revenues.— In thousands of

dollars, enter the net revenues from the taxation of motor

fuels, motor vehicles, drivers, and motor carriers for their

use of and operation on highways, roads, and streets. Net

revenues exclude refunds and collection expenses.

Item VI.B. General funds.— In thousands of dollars,

enter the net amount of general funds expended for

highway, road, and street activities. 

Item VI.C. FHWA funds.— In thousands of dollars, enter

the amount of Federal Highway Administration funds

received and expended for highway, road, and street

activities. 

Item VI.D. Other Federal funds.— In thousands of

dollars, enter the amount of funds received from other

Federal agencies and expended for highway, road, and

street activities. 

Item VI.E. Total.— Enter the sum of items VI.A.

through VI.D.

information on the net expenditures for highway, road,

and street programs during the year as categorized

below.

Item VII.A. Capital outlay.— In thousands of dollars,

enter the total of capital outlay for highways, roads, and

streets.

Item VII.B. Maintenance.— In thousands of dollars,

enter the total of maintenance and operational

expenditures for highways, roads, and streets.

expenditures for highways, roads, and streets. 

Administration excludes collection expenditures.

excluded.

through VII.D.
D-1

APPENDIX D

A SIMPLIFIED METHODOLOGY FOR REPORTING

LOCAL HIGHWAY FINANCE DATA

This appendix describes a simplified methodology for collecting and reporting local highway finance data. This

methodology uses sampling and estimation as a means of reducing the cost and effort associated with data reporting

activities by the States, and is intended to provide a practical procedure for meeting FHWA's local highway finance data

needs. However, it may have only a limited application in States which already require more complete reporting for State

purposes or which have centralized, computer-based data collecting, processing, and reporting systems.

The usual sources of local highway finance data include audits, budgets, and financial reports supplied to the State

highway agencies by local governments. These can be supplemented by questionnaires and surveys. Data collected by or

reported to other State agencies may also be useful. However, a sampling and estimation procedure has great potential as

a cost effective alternative to 100 percent data collection and reporting.

In its simplest form, sampling uses a portion or subset— a sample— of a population to estimate the total population. A

number of local governments in a State would be selected, and their financial data used as the basis for estimating local

highway finance data for all local governments in the State. In addition to the collection of raw data from a representative

sample of local governments, estimation may also involve the use of trends, projections, knowledge of local priorities, and

personal judgment about the limitations of the data available. 

The first step in sampling is to group or stratify all local governments on the same basis or criteria. The governments

within each group should have many features in common, including the nature and extent of highway activities. If the

groups are carefully selected, a few counties or municipalities can be expanded to give a representative fiscal picture for

the respective grouping, and ultimately all groups. 

One possible criterion is population size. Prior local highway finance reporting to FHWA indicates that a small number of

local governments with large populations represent the greatest portion and most significant part of the data. While only

20 percent of municipalities have a population above 5,000, these municipalities are responsible for approximately

88 percent of total financial expenditures. By concentrating on larger municipalities, acceptable results can be obtained

more efficiently.

Some States may elect to use population density, roadway mileage, or other criteria with or in place of population. The

State should determine what criterion will create the most commonality within each group. 

Reliable, comparable information to determine the criterion for the groupings is important. For example, when using

population as a criterion, the latest available population data from the Bureau of the Census should be used, rather than

relying on local estimates of their current population. 

The next step in sampling is to select the number of local governmental units (among counties, townships, and cities) to

represent the sample for each grouping or strata. The greater number of units surveyed, the greater the accuracy for that

grouping.

Some factors to be considered when determining the number of units to include in a grouping are:

! The availability of data;

! The amount and extent of the desired data recorded by local governments;

! The comparability of data among local governments.

Assuming that population is used as the criterion for grouping the units of local government, the sample should focus on

the largest population groups. The relatively few municipalities, counties, and townships with large populations account

for a disproportionate share of capital outlay and overall expenditures for roads and streets, and typically have more
D-2

accurate and readily available financial reports. Therefore, all units within the largest population group should be

examined. The size of the other groups and the number of units within each grouping to be examined should reflect their

relative share of the State totals. 

The sample size necessary to estimate the group total with a desired confidence level can be determined using

mathematical formulas, statistical textbooks, or judgmental decision. The composition of the samples should take into

account the data reporting burden on individual governments and the accuracy of the data collected. To limit the reporting

burden on local governments, the State may examine one quarter of all small local governments' financial reporting every

fourth year. The sample would be the total number of governments in that population size group divided by four. The

State may also consider the relative burden of reporting the data. If some local governments are able to generate the data

more easily than most others, the State may sample these areas more frequently. In order to balance out its data collection

and analysis workload on the biennially reported FHWA-536, the State may choose to survey half of its selected sample

each year.

After sample selection, subsequent steps involve: analyzing financial reports, developing local highway finance data,

testing the data, expanding data within the groups, and combining individual group data to produce the statewide summary

totals for the local highway finance reports. If a selected local government's data is incomplete or unavailable, the State

may find it necessary to estimate some local data, or to select another local government as a replacement.

The use of sampling should reduce the data reporting burden of both the local and State governments. Local governments

would not need to produce data as often, and the State would have fewer local reports to analyze in preparing data for the

FHWA-536 report. 

The New Mexico case study which follows provides a more complete presentation of sampling and estimation procedures

which could be used in collecting and reporting local highway finance data.
D-3

A METHODOLOGY FOR LOCAL HIGHWAY FINANCE STATISTICAL REPORTING

(NEW MEXICO CASE STUDY)

This paper presents a practical methodology for the collection, analysis, and reporting of local highway finance data. The

methodology is based on sampling and estimation techniques, and illustrates a simplified approach for developing local

highway finance data. The case study used published statistical data for New Mexico's counties that were provided by the

FHWA division office. A similar approach could be used for estimating data for all local governmental units within a

State (e.g., counties, townships, and municipalities combined).

The first step in this methodology involves sorting or ranking all counties on a common basis. As illustrated in table 1,

population size was used as the ranking factor. The latest available information from the Bureau of the Census should be

used for population statistics.

Table 1

Population Size Ranking of 31 Counties

County Population County Population

Bernalillo 362,087 Roosevelt 16,446

Dona Ana 79,593 Luna 14,421

San Juan 64,719 Colfax 13,076

Santa Fe 62,420 Quay 11,221

Lea 51,525 Socorro 9,899

McKinley 51,081 Lincoln 9,710

Chaves 47,695 Sierra 8,302

Valencia 46,141 Torrance 6,383

Curry 43,007 Hidalgo 5,820

Eddy 42,800 Union 4,946

Otero 42,727 Mora 4,886

Rio Arriba 27,896 Guadalupe 4,839

Grant 24,377 De Baca 2,604

San Miguel 23,426 Catron 2,338

Sandoval 22,576 Harding 1,230

Taos 19,375

Then, by examining population sizes and ranges, the counties may be stratified into easily managed groups. The selection

of the groups and group sizes should be based on the ease of data management. Some considerations are: population

ranges, population sizes, number of counties, county size characteristics, similar group sizes, etc. In this case study, the

counties are stratified into five groups. Because the population of Bernalillo County is four times greater than the next

largest county, Bernalillo is segregated into a separate group. The rest of the counties are grouped within arbitrary ranges.
D-4

Table 2

Counties Stratified by Population Size

Above 100,000 Below 10,000

Bernalillo Catron

De Baca

50,000 - 99,999

Guadalupe

Dona Ana Harding

Lea Hidalgo

McKinley Lincoln

San Juan Mora

Santa Fe Sierra

Socorro

40,000 - 49,999 Torrance

Chaves Union

Curry

Eddy

Otero

Valencia

10,000 - 39,999

Colfax

Grant

Luna

Quay

Rio Arriba

Roosevelt

Sandoval

San Miguel

Taos

The second step involves a determination of what proportion of receipts and disbursements each county represents to the

State total and the individual group total. Table 3 illustrates this distribution and was based on the 1976 New Mexico

County and Municipal Road and Street Finance Report.

The third step involves the selection of a sample from each group. The sample size reflects the desired confidence in the

accuracy of the data. If all 31 counties are chosen for the sample, the accuracy of the data would be 100 percent with a

margin of error (or confidence limit) of ±0. If only one county was chosen for the sample, there would be little confidence

in the accuracy of the data. However, it has been proven by mathematical formulas that a relatively small number of units

or counties can represent all counties in the State with a high degree of accuracy. Sample size can be determined by

formula, from statistical texts or by arbitrary decision. For this case study, a sample size of 11 counties was selected from

the 31 New Mexico counties. The sample was selected on the basis of examining each county every 4 years, but

including at least two counties from each group each year. Since the first group contains only Bernalillo County, it will be

included in the sample every year. Table 4 illustrates the final sample selection for the case study with corresponding

finance data obtained from the 1977 New Mexico County and Municipal Road and Street Finance Report.
D-5

Table 3

Percentage of Individual County Receipts

and Disbursements to Total County (and Group Totals)

 Receipts Disbursements

 All Counties (Group) All Counties (Group)

Above 100,000

Bernalillo 15.4 (100.0) 13.8 (100.0)

50,000 - 99,999

Dona Ana 4.3 (22.6) 3.8 (15.1)

Lea 4.6 (24.3) 6.7 (26.7)

McKinley 2.4 (12.6) 4.2 (16.7)

San Juan 3.8 (20.0) 7.7 (30.7)

Santa Fe 3.9 (20.5) 2.7 (10.8)

19.0 (100.0) 25.1 (100.0)

40,000 - 49,999

Chaves 4.9 (23.0) 4.6 (20.7)

Curry 3.8 (17.8) 2.9 (13.1)

Eddy 4.3 (20.2) 8.4 (37.8)

Otero 3.9 (18.3) 3.0 (13.5)

Valencia 4.4 (20.7) 3.3 (14.9)

21.3 (100.0) 22.2 (100.0)

10,000 - 39,999

Colfax 1.7 (7.3) 1.5 (6.8)

Grant 2.2 (9.4) 5.1 (23.1) 

Luna 4.4 (18.9) 3.2 (14.5)

Quay 2.6 (11.2) 2.1 (9.5)

Rio Arriba 1.7 (7.3) 2.9 (13.1)

Roosevelt 3.0 (12.9) 2.4 (10.9)

Sandoval 3.5 (15.0) 1.4 (6.3)

San Miguel 2.3 (9.9) 1.9 (8.6)

Taos 1.9 (8.1) 1.6 (7.2)

23.3 (100.0) 22.1 (100.0)

Below 10,000

Catron 2.8 (13.3) 2.0 (11.9)

De Bach 1.5 (7.1) 0.8 (4.8)

Guadalupe 1.4 (6.7) 1.5 (8.9)

Harding 1.2 (5.7) 0.9 (5.4)

Hidalgo 0.9 (4.3) 1.0 (6.0)

Lincoln 3.2 (15.2) 2.9 (17.3)

Mora 1.0 (4.8) 0.6 (3.6)

Sierra 1.4 (6.7) 1.2 (7.1)

Socorro 3.4 (16.2) 2.4 (14.2)

Torrance 2.1 (10.0) 1.6 (9.5)

Union 2.1 (10.0) 1.9 (11.3)

21.0 (100.0) 16.8 (100.0)

Total Counties 100.0 100.0
D-6

Table 4

Sample and Group Totals

 Total Receipts Total Disbursements

Above 100,000

Bernalillo $1,346,066 $1,182,252

50,000 - 99,000

Dona Ana 392,665 370,491

Lea 390,546 769,878

783,211 1,140,369

40,000 - 49,999

Chaves 376,126 333,388

Curry 315,671 294,366

691,797 627,754

10,000 - 39,999

Colfax 125,735 104,581

Grant 196,521 491,518

Luna 389,690 392,730

711,946 988,829

Below 10,000

Catron 293,429 194,214

De Baca 122,056 147,417

Guadalupe 118,417 152,532

$ 533,902 $ 494,163

The fourth step involves determining the total receipts and disbursements for each group by expanding the data for the

sample chosen from within each group. This is accomplished by dividing the total for each sample group from table 4 by

the sum of the percentages obtained from table 3 which represents the sample counties within the group.
D-7

Table 5A

Total Receipts

Above 100,000

Bernalillo 1,346,066 ÷ 1.00 = $1,346,066

50,000 - 99,000

Dona Ana 783,211 ÷ (.226 + .243) = 1,669,959

Lea @

40,000 - 49,999

Chaves 691,797 ÷ (.230 + .178) = 1,695,580

Curry @

10,000 - 39,999

Colfax B 711,946 ÷ (.073 + .094 + .198) = 1,999,848

Grant C

Luna D

Below 10,000

Catron B 533,902 ÷ (.133 + .071 + .067) = 1,970,118

De Baca C

Guadalupe D

 Total $8,681,571

Table 5B

Total Disbursements

Above 100,000

Bernalillo 1,182,252 ÷ 1.00 = $1,182,252

50,000 - 99,000

Dona Ana

Lea A 1,140,369 ÷ (.151 + .267) = 2,728,155

40,000 - 49,999

Chaves

Curry A 627,754 ÷ (.207 + .131) = 1,857,260

10,000 - 39,999

Colfax B

Grant C 988,829 ÷ (.068 + .231 + .145) = 2,227,092

Luna D

Below 10,000

Catron B

De Baca C 494,163 ÷ (.119 + .048 + .089) = 1,930,324

Guadalupe D

 Total $9,925,083
D-8

The actual 1977 receipts and disbursements for each population group were used to test the results.

Table 6

Receipts Disbursements

Above 100,000

Bernalillo $1,346,066 $1,182,252

50,000 - 99,000

Dona Ana 392,665 370,491

Lea 390,546 769,878

McKinley 187,796 273,465

San Juan 314,377 697,771

Santa Fe 295,150 295,371

1,580,534 2,406,976

40,000 - 49,999

Chaves 376,126 333,388

Curry 315,671 294,366

Eddy 358,362 965,715

Otero 315,525 301,324

Valencia 350,315 332,382

1,715,999 2,227,175

10,000 - 39,999

Colfax 125,735 104,581

Grant 196,521 491,518

Luna 389,690 392,730

Quay 202,955 220,570

Rio Arriba 172,644 328,166

Roosevelt 330,073 390,073

Sandoval 305,557 269,674

San Miguel 192,259 199,925

Taos 139,681 135,542

2,055,115 2,532,779

Below 10,000

Catron 293,429 194,214

De Baca 122,056 147,417

Guadalupe 118,417 152,532

Harding 95,644 92,430

Hidalgo 83,200 76,318

Lincoln 353,910 351,676

Mora 63,931 48,542

Sierra 132,771 126,342

Socorro 307,963 272,037

Torrance 159,489 198,788

Union 169,037 179,419

1,899,847 1,839,715

 Total $8,597,561 $10,188,897
D-9

The last step involves the comparison of the estimates for the groups to the actual 1977 receipts and disbursements. By

dividing the estimates by the actual data, the accuracy of the sample and estimates can be determined.

Table 7 illustrates the percentage differences between the sample estimates and the actual data for each group.

Table 7

Population Receipts Disbursements

Above 100,000 0.0% 0.0%

50,000-99,999 +5.7% +23.3%

40,000-49,999 -1.2% -16.6%

10,000-39,999 -2.7% -12.1%

Below 10,000 -4.1% +4.9%

 Total +0.98% -2.6%

Although the variance for individual groups for receipts measures up to 5.7 percent, the estimate for all groups differs by

less than 1 percent. While individual group estimates for disbursements show greater variance, the estimate for all groups

differs by less than 3 percent. Individual group variations essentially cancel when the total for all groups is obtained. 

Using this methodology, results were obtained with much less than a 10 percent variance from the actual data. The

estimates would have been very satisfactory as a basis for reporting local highway finance statistical data to the Federal

Highway Administration for New Mexico.