This table is intended for use in revenue analyses and shows fuel volumes without regard to the type of use. These three tables can be found in the highway finance section. In most States, the tax on aviation fuel is either refunded or placed in a special fund for aviation purposes. Similarly, some States place in a separate fund all or part of the tax paid on fuel used by marine craft and use these funds for the improvement of marine facilities. When revenue from fuels used for nonhighway purposes is dedicated for expenditure for specific nonhighway purposes, it is shown in column 6 of table MF-1.
Diesel fuel is the most widely used of the special fuels.
At the end of 1994, twelve States reported higher tax rates on diesel fuel than on gasoline and eight States reported lower rates. In this publication, exemption is applied when the State purposely did not collect the tax, and refund has been applied when the State collected the tax and later returned it, in whole or in part. Refunds are often granted for nonhighway uses of motor fuel such as for agriculture, aviation, manufacturing, construction, and marine purposes. In most States, gasoline used for nonhighway purposes is taxed but the tax is refundable, but special fuels used for nonhighway purposes are exempt from taxation. How They Are Collected and Distributed provides additional information on motor fuel.