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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

N 4510.414

Notice
Subject
ALLOCATION OF FISCAL YEAR (FY) 1999 FUNDS FOR HIGHWAY USE TAX EVASION PROJECTS
Classification Code Date Expiration Date
N 4510.414 December 30, 1998 September 30, 1999
  1. PURPOSE. To allocate funds to the States for highway use tax evasion projects authorized for FY 1999 pursuant to Title 23, U.S.Code Section 143 and to Section 1101 of the Transportation Equity Act for the 21st Century (TEA-21) (Pub. L. 105-178), and to provide obligation authority for these funds (see Attachment 1).
     
  2. AVAILABILITY
    1. The funds resulting from this allocation, as shown in Attachment 2, are available, up to the limitation amount, for obligation until September 30, 1999, at which time any amounts not obligated will be withdrawn. The funds are being made available to the States that have expended and billed the Federal Highway Administration (FHWA) for all but one year's allocation of Tax Evasion Project funds.
       
    2. Obligation authority is provided for 100 percent of the amount allocated to the States with this Notice. The obligation authority being distributed with this Notice is to support the obligation of "non-formula" funds. Division Administrators should ensure that this obligation authority is included in any required notification of the status of funds obligated in FY 1999.
       
    3. The Federal share for projects authorized with these funds is 100 percent.
       
    4. The Program Code for these funds is Q96, and the project prefix is TCP.
       
  3. AUTHORITY. The TEA-21 authorized funds for Highway Use Tax Evasion Projects under 23 U.S.C. 143. Most of the funds authorized are reserved for the Internal Revenue Service (IRS) for the development and operation of an automated fuel reporting system. The balance of the funds are being allocated to the States, primarily to support continued participation in regional motor fuel tax enforcement task forces.
     
  4. BACKGROUND. Nine regional motor fuel tax enforcement task forces have been organized under the coordination and leadership of the IRS District Offices and State revenue agencies in the lead States of Massachusetts, New Jersey, North Carolina, Florida, Indiana, Nebraska, Texas, California, and Oregon. The tax evasion project funds for FYs 1992 through 1997 were allocated to the States and the District of Columbia to encourage participation in these task forces with $100,000 per year allocated to lead States and $50,000 per year to the other States and the District of Columbia. FHWA Notice N 4510.387 allocated FY 1998 funds authorized in the Surface Transportation Extension Act of 1997 at the same annual funding level to States that had expended and billed FHWA for the largest percentage of prior funds obligated. All States receiving the FY 1998 allocations under this Act obligated the available funds by March 31, 1998. A second allocation of FY 1998 funds became available after the signing of TEA-21. FHWA Notice N 4510.401 allocated additional FY 1998 funds at half of the annual funding level to States that had expended and billed FHWA for all but one year's allocation of prior funds. All States receiving FY 1998 funds under this Act obligated available funds by September 30, 1998.
     
  5. PROJECT REQUIREMENTS
    1. All FY 1999 funds allocated with this Notice shall be identified under Program Code Q96 and will follow the same FHWA-37 reporting procedures formerly established for Appropriation Code 94C in the February 7, 1991, memorandum from the Chief of the Program Analysis Division, subject: "FMIS Manual Prepublication Notification." Funds are available at 100-percent Federal share to the State agency responsible for enforcement of motor fuel taxes. However, as specified in 23 U.S.C. 143(b)(5), States wishing to receive funds for tax evasion projects must certify that the aggregate expenditure of funds of the State, exclusive of Federal funds, for motor fuel tax enforcement activities will be maintained at a level that does not fall below the average level of such expenditures for its last 2 fiscal years. To receive funding under this program, the State revenue agency responsible for enforcement of State motor fuel taxes shall comply with the procedures established for this program. This includes signing the Memorandum of Understanding agreeing to participate in at least one of the regional motor fuel tax enforcement task forces, preparing a project budget, complying with intergovernmental review requirements, and signing the Project Agreement.
       
    2. Payments to the States will follow normal Federal-aid procedures. These projects will use normal accounting codes for State projects, that is, Object Code 4105.
       
  6. ACTION. The Division Administrator may approve projects by signing the Project Agreement (Form FHWA-1548, Rev. 7/7/98, Attachment 3). One copy with original signatures shall be returned to the State and one copy with original signatures shall be retained in the Division Office. States that have already signed a Project Agreement to include FY 1998 funds allocated by Notice N 4510.401, shall sign the revised Amended Project Agreement (Form FHWA-1549, Rev. 11/25/98, Attachment 4). The period of performance may also be extended as needed, when the State and Division Office sign the Amended Project Agreement.

Original signed by:

Kenneth R. Wykle
Federal Highway Administrator

 

 

Last updated: Thursday, September 30, 1999