FUEL TAX EVASION VIA THE FUEL TAX REFUND PROCESS

摘要

Despite data that estimates the amount of fuel tax evasion, little research has examined fuel taxevasion through the fuel tax refund process. This paper presents data analysis indicating that thefuel tax refund process, although susceptible to errors, is not heavily populated with evasion.Motor fuel taxes are excise taxes meant to benefit transportation infrastructure. But some fueluses occur off of the roadway; for example, a farming tractor expends fuel while plowing a field;well-drilling trucks expend fuel while drilling a well; and, refrigeration units on trucks with afuel tank separate of the primary fuel tank expend fuel powering a refrigerator pump. Arguably,users should not have to pay an excise tax for fuel used for off-road purposes. For diesel, at least,the federal government created tax-exempt, dyed diesel. But not all users are able to purchasedyed diesel, or they require another type of fuel. The federal government and some stategovernments provide processes for these off-road users to obtain tax credits or refunds when taxexempt fuel is unavailable, but these processes are susceptible to errors, omissions, and evasion.This paper examines data from a three-year period for three types of refunds from Montana, butthe results have implications for all states. The data indicates that mathematical errors and errorsrelating to the forms most commonly plague the refund process. And yet, the data does notindicate that much evasion is occurring within the fuel tax refund process.