23 U.S.C. § 143 : US Code - Section 143: Highway use tax evasion projects

Search 23 U.S.C. § 143 : US Code - Section 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; except that of
funds so made available for each of fiscal years 2005 through
2009, $2,000,000 shall be available only to carry out
intergovernmental enforcement efforts, including research and
training.
(3) Conditions on funds allocated to internal revenue service. -
Except as otherwise provided in this section, 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;
(G) to analyze and implement programs to reduce tax evasion
associated with other highway use taxes;
(H) to support efforts between States and Indian tribes to
address issues relating to State motor fuel taxes; and
(I) to analyze and implement programs to reduce tax evasion
associated with foreign imported fuel.
(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 1/4 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.
(9) Reports. - The Commissioner of the Internal Revenue Service
and each State shall submit to the Secretary an annual report
that describes the projects, examinations, and criminal
investigations funded by and carried out under this section. Such
report shall specify the estimated annual yield from such
projects, examinations, and criminal investigations.
(c) Excise Tax Fuel Reporting. -
(1) In general. - Not later than 90 days after the date of
enactment of the SAFETEA-LU, the Secretary shall enter into a
memorandum of understanding with the Commissioner of the Internal
Revenue Service for the purposes of -
(A) the additional development of capabilities needed to
support new reporting requirements and databases established
under such Act and the American Jobs Creation Act of 2004
(Public Law 108-357), and such other reporting requirements and
database development as may be determined by the Secretary, in
consultation with the Commissioner of the Internal Revenue
Service, to be useful in the enforcement of fuel excise taxes,
including provisions recommended by the Fuel Tax Enforcement
Advisory Committee,
(B) the completion of requirements needed for the electronic
reporting of fuel transactions from carriers and terminal
operators,
(C) the operation and maintenance of an excise summary
terminal activity reporting system and other systems used to
provide strategic analyses of domestic and foreign motor fuel
distribution trends and patterns,
(D) the collection, analysis, and sharing of information on
fuel distribution and compliance or noncompliance with fuel
taxes, and
(E) the development, completion, operation, and maintenance
of an electronic claims filing system and database and an
electronic database of heavy vehicle highway use payments.
(2) Elements of memorandum of understanding. - The memorandum
of understanding shall provide that -
(A) the Internal Revenue Service shall develop and maintain
any system under paragraph (1) through contracts,
(B) any system under paragraph (1) shall be under the control
of the Internal Revenue Service, and
(C) any system under paragraph (1) 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. - Of the amounts made available to carry out this
section for each of fiscal years 2005 through 2009, the Secretary
shall make available to the Internal Revenue Service such funds
as may be necessary to complete, operate, and maintain the
systems under paragraph (1) in accordance with this subsection.
(4) Reports. - Not later than September 30 of each year, the
Commissioner of the Internal Revenue Service shall provide
reports to the Secretary on the status of the Internal Revenue
Service projects funded under this subsection.