President Clinton's budget proposal calls for the reinstatement of the 0.1 cent per gallon tax after the date of enactment and before October 1, 2007. Revenue collections would be deposited in the LUST Trust Fund. From the Highway Trust Fund, 9.5 cents is expended on highway-related programs with 2 cents placed into the Mass Transit Account. Amounts in the Mass Transit Account can be used for capital, capital-related and operating expenditures under the Urban Mass Transportation Act of 1964. Additionally, transfers from the Highway Trust Fund may be made into the National Recreational Trails Trust Fund, the Land and Water Conservation Fund, and the Boating Safety Account of the Aquatic Resources Trust Fund.
Funds so transferred are equivalent to the gasoline taxes collected on the fuel used in motorboats.
Examples of recreational fuels are those used in vehicles on recreational trails or back country terrain, and non-business fuel used in outdoor recreational equipment such as camp stoves. Table 2 summarizes the federal excise tax rate on gasoline by time period. Thus, the distribution of amounts collected from the gasoline excise tax changed. The Highway Trust Fund receives increased revenues since the rate credited to that fund increased to 14 cents. At this same time, the amount credited to the General Fund decreased from 6.8 to 4.3 cents.