Laws: Cases and Codes : U.S. Code : Title 26 : Section 9503


   
U.S. Code as of: 01/19/04
Section 9503. Highway Trust Fund

    (a) Creation of Trust Fund
      There is established in the Treasury of the United States a trust
    fund to be known as the "Highway Trust Fund", consisting of such
    amounts as may be appropriated or credited to the Highway Trust
    Fund as provided in this section or section 9602(b).
    (b) Transfer to Highway Trust Fund of amounts equivalent to certain
      taxes
      (1) In general
        There are hereby appropriated to the Highway Trust Fund amounts
      equivalent to the taxes received in the Treasury before October
      1, 2005, under the following provisions - 
          (A) section 4041 (relating to taxes on diesel fuels and
        special motor fuels),
          (B) section 4051 (relating to retail tax on heavy trucks and
        trailers),
          (C) section 4071 (relating to tax on tires),
          (D) section 4081 (relating to tax on gasoline, diesel fuel,
        and kerosene), and
          (E) section 4481 (relating to tax on use of certain
        vehicles).
      (2) Liabilities incurred before October 1, 2005
        There are hereby appropriated to the Highway Trust Fund amounts
      equivalent to the taxes which are received in the Treasury after
      September 30, 2005, and before July 1, 2006, and which are
      attributable to liability for tax incurred before October 1,
      2005, under the provisions described in paragraph (1).
      (3) Adjustments for aviation uses
        The amounts described in paragraphs (1) and (2) with respect to
      any period shall (before the application of this subsection) be
      reduced by appropriate amounts to reflect any amounts transferred
      to the Airport and Airway Trust Fund under section 9502(b) with
      respect to such period.
      (4) Certain taxes not transferred to Highway Trust Fund
        For purposes of paragraphs (1) and (2), there shall not be
      taken into account the taxes imposed by - 
          (A) section 4041(d),
          (B) section 4081 to the extent attributable to the rate
        specified in section 4081(a)(2)(B),
          (C) section 4041 or 4081 to the extent attributable to fuel
        used in a train,
          (D) in the case of gasoline and special motor fuels used as
        described in paragraph (4)(D) or (5)(B) of subsection (c),
        section 4041 or 4081 with respect to so much of the rate of tax
        as exceeds - 
            (i) 11.5 cents per gallon with respect to taxes imposed
          before October 1, 2001,
            (ii) 13 cents per gallon with respect to taxes imposed
          after September 30, 2001, and before October 1, 2003, and
            (iii) 13.5 cents per gallon with respect to taxes imposed
          after September 30, 2003, and before October 1, 2005,

          (E) in the case of fuels described in section 4041(b)(2)(A),
        4041(k), or 4081(c), section 4041 or 4081 before October 1,
        2005, with respect to a rate equal to 2.5 cents per gallon, or
          (F) in the case of fuels described in section 4081(c)(2),
        such section before October 1, 2005, with respect to a rate
        equal to 2.8 cents per gallon.
      (5) Limitation on transfers to Highway Trust Fund
        (A) In general
          Except as provided in subparagraph (B), no amount may be
        appropriated to the Highway Trust Fund on and after the date of
        any expenditure from the Highway Trust Fund which is not
        permitted by this section. The determination of whether an
        expenditure is so permitted shall be made without regard to - 
            (i) any provision of law which is not contained or
          referenced in this title or in a revenue Act, and
            (ii) whether such provision of law is a subsequently
          enacted provision or directly or indirectly seeks to waive
          the application of this paragraph.
        (B) Exception for prior obligations
          Subparagraph (A) shall not apply to any expenditure to
        liquidate any contract entered into (or for any amount
        otherwise obligated) before March 1, 2004, in accordance with
        the provisions of this section.
    (c) Expenditures from Highway Trust Fund
      (1) Federal-aid highway program
        Except as provided in subsection (e), amounts in the Highway
      Trust Fund shall be available, as provided by appropriation Acts,
      for making expenditures before March 1, 2004, to meet those
      obligations of the United States heretofore or hereafter incurred
      which are - 
          (A) authorized by law to be paid out of the Highway Trust
        Fund established by section 209 of the Highway Revenue Act of
        1956,
          (B) authorized to be paid out of the Highway Trust Fund under
        title I or II of the Surface Transportation Assistance Act of
        1982,
          (C) authorized to be paid out of the Highway Trust Fund under
        the Surface Transportation and Uniform Relocation Assistance
        Act of 1987,
          (D) authorized to be paid out of the Highway Trust Fund under
        the Intermodal Surface Transportation Efficiency Act of 1991,
          (E) authorized to be paid out of the Highway Trust Fund under
        the Transportation Equity Act for the 21st Century, or
          (F) authorized to be paid out of the Highway Trust Fund under
        the Surface Transportation Extension Act of 2003.

      In determining the authorizations under the Acts referred to in
      the preceding subparagraphs, such Acts shall be applied as in
      effect on the date of the enactment of the Surface Transportation
      Extension Act of 2003.
      (2) Transfers from Highway Trust Fund for certain repayments and
        credits
        (A) In general
          The Secretary shall pay from time to time from the Highway
        Trust Fund into the general fund of the Treasury amounts
        equivalent to - 
            (i) the amounts paid before July 1, 2006, under - 
              (I) section 6420 (relating to amounts paid in respect of
            gasoline used on farms),
              (II) section 6421 (relating to amounts paid in respect of
            gasoline used for certain nonhighway purposes or by local
            transit systems), and
              (III) section 6427 (relating to fuels not used for
            taxable purposes),

          on the basis of claims filed for periods ending before
          October 1, 2005, and
            (ii) the credits allowed under section 34 (relating to
          credit for certain uses of fuel) with respect to fuel used
          before October 1, 2005.

        The amounts payable from the Highway Trust Fund under this
        subparagraph or paragraph (3) shall be determined by taking
        into account only the portion of the taxes which are deposited
        into the Highway Trust Fund.
        (B) Transfers based on estimates
          Transfers under subparagraph (A) shall be made on the basis
        of estimates by the Secretary, and proper adjustments shall be
        made in amounts subsequently transferred to the extent prior
        estimates were in excess or less than the amounts required to
        be transferred.
        (C) Exception for use in aircraft and motorboats
          This paragraph shall not apply to amounts estimated by the
        Secretary as attributable to use of gasoline and special fuels
        in motorboats or in aircraft.
      (3) Floor stocks refunds
        The Secretary shall pay from time to time from the Highway
      Trust Fund into the general fund of the Treasury amounts
      equivalent to the floor stocks refunds made before July 1, 2006,
      under section 6412(a).
      (4) Transfers from the Trust Fund for motorboat fuel taxes
        (A) Transfer to Boat Safety Account
          (i) In general
            The Secretary shall pay from time to time from the Highway
          Trust Fund into the Boat Safety Account in the Aquatic
          Resources Trust Fund amounts (as determined by him)
          equivalent to the motorboat fuel taxes received on or after
          October 1, 1980, and before October 1, 2005.
          (ii) Limitations
            (I) Limit on transfers during any fiscal year
              The aggregate amount transferred under this subparagraph
            during any fiscal year shall not exceed $60,000,000 for
            each of fiscal years 1989 and 1990 and $70,000,000 for each
            fiscal year thereafter.
            (II) Limit on amount in fund
              No amount shall be transferred under this subparagraph if
            the Secretary determines that such transfer would result in
            increasing the amount in the Boat Safety Account to a sum
            in excess of $60,000,000 for each of fiscal years 1989 and
            1990 and $70,000,000 for each fiscal year thereafter.

          In making the determination under subclause (II) for any
          fiscal year, the Secretary shall not take into account any
          amount appropriated from the Boat Safety Account in any
          preceding fiscal year but not distributed.
        (B) $1,000,000 per year of excess transferred to land and water
          conservation fund
          (i) In general
            Any amount received in the Highway Trust Fund - 
              (I) which is attributable to motorboat fuel taxes, and
              (II) which is not transferred from the Highway Trust Fund
            under subparagraph (A),

          shall be transferred (subject to the limitation of clause
          (ii)) by the Secretary from the Highway Trust Fund into the
          land and water conservation fund provided for in title I of
          the Land and Water Conservation Fund Act of 1965.
          (ii) Limitation
            The aggregate amount transferred under this subparagraph
          during any fiscal year shall not exceed $1,000,000.
        (C) Excess funds transferred to Sport Fish Restoration Account
          Any amount received in the Highway Trust Fund - 
            (i) which is attributable to motorboat fuel taxes, and
            (ii) which is not transferred from the Highway Trust Fund
          under subparagraph (A) or (B),

        shall be transferred by the Secretary from the Highway Trust
        Fund into the Sport Fish Restoration Account in the Aquatic
        Resources Trust Fund.
        (D) Motorboat fuel taxes
          For purposes of this paragraph, the term "motorboat fuel
        taxes" means the taxes under section 4041(a)(2) with respect to
        special motor fuels used as fuel in motorboats and under
        section 4081 with respect to gasoline used as fuel in
        motorboats, but only to the extent such taxes are deposited
        into the Highway Trust Fund.
        (E) Determination
          The amount of payments made under this paragraph after
        October 1, 1986 shall be determined by the Secretary in
        accordance with the methodology described in the Treasury
        Department's Report to Congress of June 1986 entitled "Gasoline
        Excise Tax Revenues Attributable to Fuel Used in Recreational
        Motorboats."
      (5) Transfers from the Trust Fund for small-engine fuel taxes
        (A) In general
          The Secretary shall pay from time to time from the Highway
        Trust Fund into the Sport Fish Restoration Account in the
        Aquatic Resources Trust Fund amounts (as determined by him)
        equivalent to the small-engine fuel taxes received on or after
        December 1, 1990, and before October 1, 2005.
        (B) Small-engine fuel taxes
          For purposes of this paragraph, the term "small-engine fuel
        taxes" means the taxes under section 4081 with respect to
        gasoline used as a fuel in the nonbusiness use of small-engine
        outdoor power equipment, but only to the extent such taxes are
        deposited into the Highway Trust Fund.
    (d) Adjustments of apportionments
      (1) Estimates of unfunded highway authorizations and net highway
        receipts
        The Secretary of the Treasury, not less frequently than once in
      each calendar quarter, after consultation with the Secretary of
      Transportation, shall estimate - 
          (A) the amount which would (but for this subsection) be the
        unfunded highway authorizations at the close of the next fiscal
        year, and
          (B) the net highway receipts for the 24-month period
        beginning at the close of such fiscal year.
      (2) Procedure where there is excess unfunded highway
        authorizations
        If the Secretary of the Treasury determines for any fiscal year
      that the amount described in paragraph (1)(A) exceeds the amount
      described in paragraph (1)(B) - 
          (A) he shall so advise the Secretary of Transportation, and
          (B) he shall further advise the Secretary of Transportation
        as to the amount of such excess.
      (3) Adjustment of apportionments where unfunded authorizations
        exceed 2 years' receipts
        (A) Determination of percentage
          If, before any apportionment to the States is made, in the
        most recent estimate made by the Secretary of the Treasury
        there is an excess referred to in paragraph (2)(B), the
        Secretary of Transportation shall determine the percentage
        which - 
            (i) the excess referred to in paragraph (2)(B), is of
            (ii) the amount authorized to be appropriated from the
          Trust Fund for the fiscal year for apportionment to the
          States.

        If, but for this sentence, the most recent estimate would be
        one which was made on a date which will be more than 3 months
        before the date of the apportionment, the Secretary of the
        Treasury shall make a new estimate under paragraph (1) for the
        appropriate fiscal year.
        (B) Adjustment of apportionments
          If the Secretary of Transportation determines a percentage
        under subparagraph (A) for purposes of any apportionment,
        notwithstanding any other provision of law, the Secretary of
        Transportation shall apportion to the States (in lieu of the
        amount which, but for the provisions of this subsection, would
        be so apportioned) the amount obtained by reducing the amount
        authorized to be so apportioned by such percentage.
      (4) Apportionment of amounts previously withheld from
        apportionment
        If, after funds have been withheld from apportionment under
      paragraph (3)(B), the Secretary of the Treasury determines that
      the amount described in paragraph (1)(A) does not exceed the
      amount described in paragraph (1)(B) or that the excess described
      in paragraph (1)(B) is less than the amount previously
      determined, he shall so advise the Secretary of Transportation.
      The Secretary of Transportation shall apportion to the States
      such portion of the funds so withheld from apportionment as the
      Secretary of the Treasury has advised him may be so apportioned
      without causing the amount described in paragraph (1)(A) to
      exceed the amount described in paragraph (1)(B). Any funds
      apportioned pursuant to the preceding sentence shall remain
      available for the period for which they would be available if
      such apportionment took effect with the fiscal year in which they
      are apportioned pursuant to the preceding sentence.
      (5) Definitions
        For purposes of this subsection - 
        (A) Unfunded highway authorizations
          The term "unfunded highway authorizations" means, at any
        time, the excess (if any) of - 
            (i) the total potential unpaid commitments at such time as
          a result of the apportionment to the States of the amounts
          authorized to be appropriated from the Highway Trust Fund,
          over
            (ii) the amount available in the Highway Trust Fund at such
          time to defray such commitments (after all other unpaid
          commitments at such time which are payable from the Highway
          Trust Fund have been defrayed).
        (B) Net highway receipts
          The term "net highway receipts" means, with respect to any
        period, the excess of - 
            (i) the receipts (including interest) of the Highway Trust
          Fund during such period, over
            (ii) the amounts to be transferred during such period from
          such Fund under subsection (c) (other than paragraph (1)
          thereof).
      (6) Reports
        Any estimate under paragraph (1) and any determination under
      paragraph (2) shall be reported by the Secretary of the Treasury
      to the Committee on Ways and Means of the House of
      Representatives, the Committee on Finance of the Senate, the
      Committees on the Budget of both Houses, the Committee on Public
      Works and Transportation of the House of Representatives, and the
      Committee on Environment and Public Works of the Senate.
    (e) Establishment of Mass Transit Account
      (1) Creation of account
        There is established in the Highway Trust Fund a separate
      account to be known as the "Mass Transit Account" consisting of
      such amounts as may be transferred or credited to the Mass
      Transit Account as provided in this subsection or section
      9602(b).
      (2) Transfers to Mass Transit Account
        The Secretary of the Treasury shall transfer to the Mass
      Transit Account the mass transit portion of the amounts
      appropriated to the Highway Trust Fund under subsection (b) which
      are attributable to taxes under sections 4041 and 4081 imposed
      after March 31, 1983. For purposes of the preceding sentence, the
      term "mass transit portion" means, for any fuel with respect to
      which tax was imposed under section 4041 or 4081 and otherwise
      deposited into the Highway Trust Fund, the amount determined at
      the rate of - 
          (A) except as otherwise provided in this sentence, 2.86 cents
        per gallon,
          (B) 1.43 cents per gallon in the case of any partially exempt
        methanol or ethanol fuel (as defined in section 4041(m)) none
        of the alcohol in which consists of ethanol,
          (C) 1.86 cents per gallon in the case of liquefied natural
        gas,
          (D) 2.13 cents per gallon in the case of liquefied petroleum
        gas, and
          (E) 9.71 cents per MCF (determined at standard temperature
        and pressure) in the case of compressed natural gas.
      (3) Expenditures from Account
        Amounts in the Mass Transit Account shall be available, as
      provided by appropriation Acts, for making capital or
      capital-related expenditures before March 1, 2004 (including
      capital expenditures for new projects) in accordance with - 
          (A) section 5338(a)(1) or (b)(1) of title 49,
          (B) the Intermodal Surface Transportation Efficiency Act of
        1991,
          (C) the Transportation Equity Act for the 21st Century, or
          (D) the Surface Transportation Extension Act of 2003,

      as such section and Acts are in effect on the date of the
      enactment of the Surface Transportation Extension Act of 2003.
      (4) Limitation
        Rules similar to the rules of subsection (d) shall apply to the
      Mass Transit Account.
      (5) Portion of certain transfers to be made from account
        (A) In general
          Transfers under paragraphs (2), (3), and (4) of subsection
        (c) shall be borne by the Highway Account and the Mass Transit
        Account in proportion to the respective revenues transferred
        under this section to the Highway Account (after the
        application of paragraph (2)) and the Mass Transit Account.
        (B) Highway Account
          For purposes of subparagraph (A), the term "Highway Account"
        means the portion of the Highway Trust Fund which is not the
        Mass Transit Account.
    (f) Determination of Trust Fund balances after September 30, 1998
      For purposes of determining the balances of the Highway Trust
    Fund and the Mass Transit Account after September 30, 1998 - 
        (1) the opening balance of the Highway Trust Fund (other than
      the Mass Transit Account) on October 1, 1998, shall be
      $8,000,000,000, and
        (2) notwithstanding section 9602(b), obligations held by such
      Fund after September 30, 1998, shall be obligations of the United
      States which are not interest-bearing.

    The Secretary shall cancel obligations held by the Highway Trust
    Fund to reflect the reduction in the balance under this subsection.



Previous [Notes] Next

Related Resources

Tax Law Guide

Tax Articles and Documents

Tax Discussion

Ads by FindLaw