This places motor fuel excise tax administration under the control of the same agency collecting other types of taxes. It also separates the collection of revenues from the management of highway appropriations. This can be viewed as a functional means of organizing government and can improve tax collections by utilizing economies of scale. Some states even take the specialization one step further by organizing the revenue department along functional grounds. In lieu of separate divisions handling income, sales, or motor fuel excise taxes, the department is separated into divisions organized around function.
Some states even train auditors to deal with several different types of taxes.
However, states have recently discovered how the unique character of the motor fuel industry requires specific specialization. While most taxes are concerned with dollars, motor fuel excise taxes are levied according to gallons. Indeed, the need to track fuel transactions in gallons has required many of these states to maintain a staff of specialized fuel tax auditors within the functional audit division. Another advantage to administering motor fuel taxes through a revenue department is the ability to exchange taxpayer information. States have long recognized the need to share information with their neighboring states to avoid fuel tax evasion.