§143. Highway use tax evasion projects

(a) State Defined.-In this section, the term "State" means the 50 States and the District of Columbia.

(b) Projects.-

(1) In general.-The Secretary shall carry out highway use tax evasion projects in accordance with this subsection.

(2) Allocation of funds.-Funds made available to carry out this section may be allocated to the Internal Revenue Service and the States at the discretion of the Secretary.

(3) Conditions on funds allocated to internal revenue service.-The Secretary shall not impose any condition on the use of funds allocated to the Internal Revenue Service under this subsection.

(4) Limitation on use of funds.-Funds made available to carry out this section shall be used only-

(A) to expand efforts to enhance motor fuel tax enforcement;

(B) to fund additional Internal Revenue Service staff, but only to carry out functions described in this paragraph;

(C) to supplement motor fuel tax examinations and criminal investigations;

(D) to develop automated data processing tools to monitor motor fuel production and sales;

(E) to evaluate and implement registration and reporting requirements for motor fuel taxpayers;

(F) to reimburse State expenses that supplement existing fuel tax compliance efforts; and

(G) to analyze and implement programs to reduce tax evasion associated with other highway use taxes.

(5) Maintenance of effort.-The Secretary may not make an allocation to a State under this subsection for a fiscal year unless the State certifies 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 expenditure for the preceding 2 fiscal years of the State.

(6) Federal share.-The Federal share of the cost of a project carried out under this subsection shall be 100 percent.

(7) Period of availability.-Funds authorized to carry out this section shall remain available for obligation for a period of 3 years after the last day of the fiscal year for which the funds are authorized.

(8) Use of surface transportation program funding.-In addition to funds made available to carry out this section, a State may expend up to ¼ of 1 percent of the funds apportioned to the State for a fiscal year under section 104(b)(3) on initiatives to halt the evasion of payment of motor fuel taxes.

(c) Excise Fuel Reporting System.-

(1) In general.-Not later than August 1, 1998, the Secretary shall enter into a memorandum of understanding with the Commissioner of the Internal Revenue Service for the purposes of the development and maintenance by the Internal Revenue Service of an excise fuel reporting system (in this subsection referred to as the "system").

(2) Elements of memorandum of understanding.-The memorandum of understanding shall provide that-

(A) the Internal Revenue Service shall develop and maintain the system through contracts;

(B) the system shall be under the control of the Internal Revenue Service; and

(C) the system shall be made available for use by appropriate State and Federal revenue, tax, and law enforcement authorities, subject to section 6103 of the Internal Revenue Code of 1986.

(3) Funding priority.-Of the amounts made available to carry out this section for each of fiscal years 1998 through 2003, and prior to funding any other activity under this section, the Secretary shall make available sufficient funds to the Internal Revenue Service to establish and operate an automated fuel reporting system.

(Added Pub. L. 91–605, title I, §127(a), Dec. 31, 1970, 84 Stat. 1729 ; amended Pub. L. 93–87, title I, §122, Aug. 13, 1973, 87 Stat. 261 ; Pub. L. 105–178, title I, §1114(a), (c), June 9, 1998, 112 Stat. 152 ; Pub. L. 105–206, title IX, §9002(h), July 22, 1998, 112 Stat. 836 .)

References in Text

Section 6103 of the Internal Revenue Code of 1986, referred to in subsec. (c)(2)(C), is classified to section 6103 of Title 26, Internal Revenue Code.

Prior Provisions

Provisions similar to those in this section were contained in Pub. L. 102–240, title I, §1040, Dec. 18, 1991, 105 Stat. 1992 , as amended, which was set out as a note under section 101 of this title, prior to repeal by Pub. L. 105–178, §1114(b)(2).

Amendments

1998-Pub. L. 105–178 amended section catchline and text generally, substituting provisions relating to highway use tax evasion projects for provisions relating to economic growth center development highways.

Subsec. (c)(1). Pub. L. 105–178, §1114(c)(1), as added by Pub. L. 105–206, §9002(h), substituted "August 1" for "April 1".

Subsec. (c)(3). Pub. L. 105–178, §1114(c)(2), (3), as added by Pub. L. 105–206, §9002(h), in heading inserted "priority" after "Funding" and in text inserted "and prior to funding any other activity under this section," after "2003,".

1973-Subsec. (a). Pub. L. 93–87, §122(a), (c), substituted "projects" for "demonstration projects" and "a Federal-aid system (other than the Interstate System)" for "the Federal-aid primary system" and deleted "to demonstrate the role that highways can play" before "to promote".

Subsec. (b). Pub. L. 93–87, §122(a), substituted "projects" for "demonstration projects" and "a Federal-aid system (other than the Interstate System)" for "the Federal-aid primary system".

Subsec. (c). Pub. L. 93–87, §122(a), substituted "project" for "demonstration project" and "a Federal-aid system (other than the Interstate System)" for "the Federal-aid primary system".

Subsec. (d). Pub. L. 93–87, §122(a), substituted "highways on the Federal-aid system on which such development highway is located" for "Federal-aid primary highways".

Subsec. (e). Pub. L. 93–87, §122(b), inserted introductory text "Except as otherwise provided in subsection (c) of this section," and substituted "the Federal share of the cost of any project for construction, reconstruction, or improvement of a development highway under this section shall be the same as that provided under this title for any other project on the Federal-aid system on which such development highway is located" for "the Federal share of the cost of any project for construction, reconstruction, or improvement of a development highway under this section shall be increased by not to exceed an additional 20 per centum of the cost of such project, except that in no case shall the Federal share exceed 95 per centum of the cost of such project".

Effective Date of 1998 Amendment

Title IX of Pub. L. 105–206 effective simultaneously with enactment of Pub. L. 105–178 and to be treated as included in Pub. L. 105–178 at time of enactment, and provisions of Pub. L. 105–178, as in effect on day before July 22, 1998, that are amended by title IX of Pub. L. 105–206 to be treated as not enacted, see section 9016 of Pub. L. 105–206, set out as a note under section 101 of this title.

Highway Use Tax Evasion Projects

Pub. L. 102–240, title VIII, §8002(g), (h), Dec. 18, 1991, 105 Stat. 2204 , 2205, as amended by Pub. L. 105–178, title I, §1114(b)(3), June 9, 1998, 112 Stat. 154 , provided that:

"(g) Use of Revenues for Enforcement of Highway Trust Fund Taxes.-The Secretary of Transportation shall not impose any condition on the use of funds transferred under section 143 of title 23, United States Code, to the Internal Revenue Service. The Secretary of the Treasury shall, at least 60 days before the beginning of each fiscal year (after fiscal year 1992) for which such funds are to be transferred, submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate detailing the increased enforcement activities to be financed with such funds with respect to taxes referred to in section 9503(b)(1) of the Internal Revenue Code of 1986 [26 U.S.C. 9503(b)(1)].

"[(h) Repealed. Pub. L. 105–178, title I, §1114(b)(3)(B), June 9, 1998, 112 Stat. 154 .]"