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Applying Agreed-Upon Procedures: Highway Trust Fund Excise Taxes

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Report Type Reports and Testimonies
Report Date Jan. 23, 2003
Report No. GAO-03-360R
Subject
Summary:

We evaluated fiscal year 2002 activity affecting distributions to the Highway Trust Fund (HTF).

The Treasury Office of Tax Analysis' (OTA) fiscal year 2002 estimates of transfers from the HTF to the Aquatic Resources Trust Fund and the Land and Water Conservation Fund contained an additional transfer of $115.5 million from the HTF to the general fund. OTA officials advised us that this was the result of an update to Treasury's interpretation of Section 9503 of The Internal Revenue Code. Treasury's most recent interpretation appears to be consistent with the Code. As a result of this interpretation, net excise tax distributions to the HTF for fiscal year 2002 and for future years were, and will continue to be, less than what they would have been under the previous interpretation.

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