Highway user revenue fund : fiscal years...year end report

              Highway User Revenue Fund
Arizona Department of Transportation
Financial Management Services
Office of Financial Planning
July 2008
Fiscal Year 2008
Year- End Report
The State of Arizona taxes motor fuels and collects fees relating to the registration and operation of motor vehicles,
including gasoline and use fuel taxes, motor carrier fees, motor vehicle registration fees, vehicle license taxes
(VLT), and other miscellaneous fees. Revenues are deposited in the Arizona Highway User Revenue Fund (HURF)
and are then distributed to the cities, towns and counties and to the State Highway Fund. These taxes and fees are a
major source of revenue to the state for highway construction, improvements and other related expenditures.
FY 2008 HURF collections totaled $1,344.5 million, a
decrease of 2.7 percent from FY 2007 and 6.6 percent
below the estimate. All major revenue categories finished
the year below last year’s revenue levels. This represents
the first time since FY 1998 that HURF recorded negative
year-over-year growth. However, the FY 1998 decrease
was mainly due to a one-time revenue recognition
procedure change and not an economic result as was the
case in FY 1992.
If there was any positive note on the year’s performance, it
would be the lower than expected decrease in the gas tax
and use fuel tax revenue categories. Significantly higher
fuel prices, lackluster job growth and the prolonged
housing market slowdown have pushed the Arizona and
national economies near recession levels in FY 2008.
Highway User Revenue Fund
Executive Summary
PAGE 1
HURF REVENUE TRENDS
(Dollars in Millions)
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
07 ACT 08 ACT 08 EST
Fiscal Year
Revenue Trend Analysis
PAGE 2
The compound growth rate for HURF revenue growth over the last ten fiscal years was 3.5 percent. As noted in
last year’s FY 2007 HURF Year-End Report, the Arizona economy peaked in FY 2005 and FY 2006 beginning a
downward trend in FY 2007 and accelerating downward during FY 2008. Most the of leading economic
indicators would place the Arizona and national economies at or near recession levels. All major economic
indicators including employment, population, personal income and Arizona real gross domestic product posted
slower or negative growth rates in FY 2008.
FY 2008 HURF revenues were 6.6 percent or $95.7 million below the forecast. The monthly revenues tracked the
monthly estimates consistently except in a few months due to timing differences with commercial registration
fees.
ANNUAL HURF REVENUE TRENDS
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change
MONTHLY HURF REVENUE TREND
(Dollars in Millions)
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY 2008 ACT FY2008 EST FY 2007 ACT
Gas Tax:
FY 2008 gas tax revenue amounted to $492.5 million, a decrease
of 1.0 percent from FY 2007 and 2.5 percent below the estimate.
This represents the first time since FY 1981 that gas tax collections
recorded negative growth year-over-year. On a positive note, one
would have expected a sharper decrease in gas tax revenue due to
the higher fuel and food costs along with the housing market
uncertainty.
According to the Arizona AAA weekly new release dated July 2,
2008, the average statewide gas price per gallon was $2.93 on July
2, 2007 increasing to $4.09 on July 2, 2008. This amounts to an
approximate 40 percent increase in the price of gas during FY
2008. The higher gas prices have hit a point where the price
elasticity of demand for gasoline has turned elastic and U.S. and
Arizona consumers are driving fewer miles.
The June 2008 Arizona Blue Chip Forecast report noted wage and
salary employment growth fell sharply from 5.0 percent in CY
2006 to 1.2 percent in CY 2007. The Arizona Blue Chip panel of
economists predict wage and salary employment growth in
Arizona will bottom in CY 2008 at 0.5 percent with a modest
rebound of 1.7 percent in CY 2009.
The Arizona Blue Chip economists expect continued slowing in
personal income with Arizona personal income growth expected
at 5.0 percent in CY 2008 and 5.4 percent in CY 2009.
Historically, Arizona personal income peaked in CY 2000 and CY
2005 at 9.7 percent.
Performance By Category
PAGE 3
Source: Arizona Blue Chip Forecast, June 2008
Source: Arizona Blue Chip Forecast, June 2008
GAS TAX
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change___
AZ WAGE & SALARY EMPLOYMENT
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
00 01 02 03 04 05 06 07 08
EST
09
EST
Calendar Year
% Change___
AZ PERSONAL INCOME
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
00 01 02 03 04 05 06 07 08 EST 09 EST
Calendar Year
% Change___
USE FUEL TAX:
Use fuel tax revenues in FY 2008 totaled $207.8 million, a decrease of 1.2 percent
from FY 2007 and 2.1 percent below the estimate. With the significant slowdown
in the Arizona and national economies due to higher fuel and food prices along with
the housing market uncertainty, consumers nationwide have reduced their demand
for goods and services. Surprisingly, use fuel tax collections were only moderately
lower considering the state of the economy and diesel prices skyrocketing.
According to the AAA Daily Fuel Gauge report dated July 10, 2008, the average
Arizona diesel price per gallon was $2.98 in July 2007 increasing to $4.85 in July
2008. This amounts to an approximate 63 percent increase in the price of diesel
over the last year.
According to the Bureau of Economic Analysis, Arizona Real Gross Domestic
Product slowed to 3.5 percent in FY 2007 from 6.9 percent in FY 2006. Consistent
with other economic indicators, the Arizona Real Gross Domestic Product growth is
expected to further slow to 0.8 percent in FY 2008 rebounding modestly to 1.9
percent in FY 2009.
GASOLINE TAX RATE:
The gasoline tax rate chart on the left shows the state gasoline tax of $0.18 per
gallon. The last gasoline tax rate increase was $0.01 in FY 91.
USE FUEL TAX RATE
Presently, the state use fuel tax rate is $0.26. The large increase in FY 1999
includes a $0.09 per gallon tax increase imposed on use fuel consumed by “use
class” vehicles per Laws 1997, Chapter 8. This increase replaced the $0.08 per
gallon surcharge on use fuel from January 1, 1994 through September 30, 1997,
which is not reflected in this chart. As of July 1, 2000, the use fuel tax rate was
reduced from $0.27 to $0.26 per gallon as part of the 1997 legislation.
PAGE 4
Source: Bureau of Economic Analysis June 2008. Estimates extrapolated from US
GDP estimates from Global Insight, May 2008.
USE FUEL TAX
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change
GASOLINE TAX RATE
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
$0.20
99 00 01 02 03 04 05 06 07 08
Fiscal Year
USE FUEL TAX RATE
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
99 00 01 02 03 04 05 06 07 08
Fiscal Year
AZ Real Gross Domestic Product
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
00 01 02 03 04 05 06 07 08 EST 09 EST
Fiscal Year
% Change
VEHICLE LICENSE TAX:
FY 2008 VLT revenue amounted to $385.2 million, a
decrease of 2.1 percent from FY 2007 and 8.8 percent
below the estimate. With only modest job growth and
fewer people moving to Arizona, vehicle registrations
subject to the VLT fell by approximately 140,000 in
FY 2008. Brand new vehicles fell by 41,000, new to
state vehicles fell by 56,000 and renewal vehicles fell
by 43,000. However, the renewal figure may be
understated since there were 341,000 brand new
vehicles and 215,300 new to state vehicles that
registered and paid VLT in FY 2007 that would have
become renewal vehicles in FY 2008.
PAGE 5
MOTOR CARRIER FEE:
Motor carrier fee revenues for FY 2008 totaled $40.2
million, a decrease of 11.2 percent from FY 2007 and
16.5 percent below the estimate. Fewer trucks being
registered due to the slowdown in the state and
national economies pressured motor carrier fee
collections. The large increase in diesel prices over
the year caused some independent truckers to park
their vehicle since it was unprofitable to take on new
shipments. Motor carrier fees and other related
commercial registration fee collected through the
International Registration Program (IRP) are subject
to timing issues which actually overstated FY 2007
collections growth and FY 2008 collections negative
growth.
MOTOR CARRIER
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change
VEHICLE LICENSE TAX
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change
ARIZONA STATE POPULATION
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
00 01 02 03 04 05 06 07 08
EST
09
Calendar Year EST
% Change
PAGE 6
REGISTRATION:
Registration collections in FY 2008 totaled $162.8 million, a
decrease of 8.5 percent from last year and 14.1 percent below the
estimate. Arizona based registration revenue through the county
registration and weight fee fell by 5.6 percent while the
apportioned registration fee (interstate motor carriers) revenue fell
by 13.3 percent. As noted in the use fuel tax and VLT sections,
fewer trucks and vehicles were registered in FY 2008 due to the
continued slowdown in the Arizona and national economies and
higher fuel prices. The apportioned revenues in FY 2007 were
overstated which then magnified the negative growth in FY 2008.
The June 2008 issue of the Arizona Blue Chip Forecast showed
Arizona population totaled 6.3 million in CY 2007, an increase of
2.8 percent over CY 2006. Arizona continues to grow in
population but at a slower rate. The slowing economy has
pressured the Arizona Blue Chip panel to reduce their future
Arizona population growth estimates to 2.5 percent in both CY
2008 and CY 2009. This slower growth will still generate
approximately 160,000 new residents in each of the next two
years.
OTHER FEES:
FY 2008 “other fees” revenues reached $56.0 million, a decrease
of 3.5 percent from FY 2007 and 11.0 percent below the estimate.
The majority of this decrease was centered in the use fuel permits
and penalties which decreased by $1.5 million. Credit card fees
paid by MVD (for third parties and MVD facilities) totaled $7.9
million, which is subtracted from “other fees” revenues.
Source: Arizona Blue Chip, .June 2008
REGISTRATION
-15.0%
-5.0%
5.0%
15.0%
25.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change___
OTHER FEES
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% Change
Revenue Composition Comparison
The percentage of HURF collections by major revenue category has varied somewhat over the years due to legislation,
fuel efficiency and inflation. The gas tax revenue continues to be the largest component of HURF, but its contribution
has trended downward from 40.4 percent in FY 1999 to 36.6 percent in FY 2008. The VLT revenue category
continues to increase its share to the HURF increasing from 22.4 percent in FY 1999 to 28.6 percent in FY 2008. This
revenue category benefits from increased population, inflation and higher average fleet value each year as older
vehicles are replaced by newer vehicles. The increased contribution from “other fees” since FY 2005 was mainly due
to 2004 legislation that allowed MVD to retain a $12 processing fee with each VLT refund processed. The increase in
“other fees” share of HURF has been somewhat softened by the increase in credit card fees paid by MVD for their
facilities and third party providers which negatively impacts total “other fees” revenue. Credit card fees paid by MVD
has increased from $0.7 million in FY 1999 to $7.9 million in FY 2008.
PAGE 7
.
GAS TAX
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% of Collection
USE FUEL TAX
0.0%
5.0%
10.0%
15.0%
20.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% o f C o lle c tio n
REGISTRATION
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% o f C ollectio n
VEHICLE LICENSE TAX
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% of C olle c tion
OTHER FEES
3.4%
3.5%
3.6%
3.7%
3.8%
3.9%
4.0%
4.1%
4.2%
4.3%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% o f C o lle c tio n
MOTOR CARRIER
0.0%
5.0%
10.0%
15.0%
20.0%
99 00 01 02 03 04 05 06 07 08
Fiscal Year
% o f C o lle c t io n
HIGHWAY USER REVENUE FUND
SOURCES AND DISTRIBUTION OF FUNDS
FY 2008
TOTAL: $1,344.5 MILLION
SOURCES
Fuel
$700.3
52.1%
Motor
Carrier
$40.2
3.0%
VLT
$385.2
28.6%
Registration
$162.8
12.1%
Other
$56.0
4.2%
DISTRIBUTION
ADOT
$565.4
42.1%
Cities
$404.4
30.1%
ADOT 15.2%
$101.3
7.5%
Counties
MVD/ADOT
$7.3
0.5%
Economic
Strength Fund
$1.0
0.1%
NOTE: ADOT 15.2% represents ADOT’s allocation of HURF for MAG and PAG regional projects.
PAGE 8
DPS
$12.9
1.0%
$252.0
18.7%
$0.2
DOA
0.0%
Highway User Revenue Fund
Revenue Comparison Statement
PAGE 9
FY 2007 FY 2008 FY 2008
CATEGORY ACTUAL ACTUAL CHANGE ESTIMATE CHANGE
GAS TAX $497,702,087 $492,536,307 -1.0% $505,200,000 -2.5%
USE FUEL TAX 210,281,755 207,859,050 -1.2% 212,400,000 -2.1%
SUBTOTAL 707,983,842 700,395,357 -1.1% 717,600,000 -2.4%
MOTOR CARRIER 45,226,185 40,177,453 -11.2% 48,100,000 -16.5%
VEHICLE LICENSE TAX 393,496,994 385,186,412 -2.1% 422,200,000 -8.8%
COUNTY REGISTRATION 81,444,010 76,909,516 -5.6% 85,700,000 -10.3%
APPORTIONED 82,166,366 71,203,481 -13.3% 89,000,000 -20.0%
MISC. REGISTRATION 14,177,884 14,651,877 3.3% 14,700,000 -0.3%
SUBTOTAL 177,788,261 162,764,874 -8.5% 189,400,000 -14.1%
TITLE FEES 8,676,585 8,444,578 -2.7% 9,200,000 -8.2%
OPERATOR LICENSES 18,203,194 18,255,219 0.3% 19,200,000 -4.9%
OVERSIZE PERMITS 7,031,036 7,843,611 11.6% 7,700,000 1.9%
INQUIRY FEES 12,148,552 12,382,658 1.9% 13,500,000 -8.3%
STATION FUEL FEES 3,705,071 2,159,738 -41.7% 4,100,000 -47.3%
INVESTMENT INTEREST 2,320,828 2,380,660 2.6% 2,500,000 -4.8%
SPECIAL PLATES 7,644,002 7,819,969 2.3% 8,400,000 -6.9%
CREDIT CARD FEES (7,986,949) (9,175,184) 14.9% (8,500,000) 7.9%
MISCELLANEOUS FEES 6,236,316 5,841,645 -6.3% 6,800,000 -14.1%
SUBTOTAL 57,978,634 55,952,894 -3.5% 62,900,000 -11.0%
TOTAL $1,382,473,916 $1,344,476,990 -2.7% $1,440,200,000 -6.6%
Details may not add to the total due to individual rounding.
Highway User Revenue Fund
Revenue Collections By Category
(Dollars In Thousands)
FY 1999- 2008
PAGE 10
1/ Details may not add to the total due to individual rounding.
Fiscal Vehicle Percent
Year Gas Tax Use Fuel Tax Motor Carrier License Tax Registration Other Total /1 Change
1999 $397,463 $160,312 $34,150 $220,126 $131,952 $38,775 $982,779
2000 409,137 156,599 36,563 236,547 140,345 40,409 1,019,599 3.7%
2001 418,400 155,859 32,678 251,613 132,269 40,147 1,030,965 1.1%
2002 434,818 161,507 29,347 270,641 138,210 41,873 1,076,395 4.4%
2003 446,891 166,744 32,856 281,947 141,328 41,490 1,111,256 3.2%
2004 463,531 179,002 34,617 312,262 146,638 43,510 1,179,561 6.1%
2005 481,284 194,368 37,980 328,232 154,122 49,567 1,245,553 5.6%
2006 489,081 213,460 40,504 373,864 158,805 55,911 1,331,625 6.9%
2007 497,702 210,282 45,226 393,497 177,788 57,979 1,382,474 3.8%
2008 492,536 207,859 40,177 385,186 162,765 55,953 1,344,477 -2.7%
Total $4,530,843 $1,805,992 $364,099 $3,053,915 $1,484,223 $465,613 $11,704,684
Highway User Revenue Fund
Revenue Distributions
(Dollars In Thousands)
FY 1999-2008
PAGE 11
ECONOMIC
ARIZONA MAG PAG CITIES DEPT. OF STRENGTH OTHER
FISCAL HIGHWAY CONTROLLED CONTROLLED AND PUBLIC PROJECT MISCELLANEOUS
YEAR FUND ACCESS ACCESS TOWNS COUNTIES SAFETY / 1 FUND / 2 APPROPRIATIONS TOTAL / 11
1999 $413,371 $55,571 $18,524 $294,410 $183,403 $12,500 $1,000 $4,000 /3 $982,779
2000 430,668 57,896 19,299 306,729 191,077 12,500 1,000 430 /4 1,019,599
2001 433,248 58,243 19,415 308,567 192,222 12,500 1,000 5,770 /4 1,030,965
2002 438,230 58,913 19,638 312,115 194,433 52,066 1,000 1,076,395
2003 451,827 60,741 20,247 321,799 200,465 54,528 1,000 648 /5 1,111,256
2004 483,688 65,024 21,675 344,491 214,601 48,698 1,000 383 /5 1,179,561
2005 410,362 55,167 18,389 363,535 226,464 52,216 1,000 118,420 /5 /6 /7 1,245,553
2006 539,865 72,576 24,192 386,128 240,538 66,693 1,000 633 /5 /8 1,331,625
2007 584,531 78,581 26,194 418,114 260,465 12,983 1,000 607 /5 1,382,474
2008 565,381 76,006 25,335 404,434 251,942 12,913 1,000 7,465 /5,9,10 1,344,477
Total $4,751,171 $638,718 $212,907 $3,460,322 $2,155,611 $337,597 $10,000 $138,357 $11,704,684
NOTES:
1/ The legislature has authorized the distribution of Arizona Highway User Revenue Fund (HURF) monies to the Arizona
Department of Public Safety (DPS) for highway patrol expenditures. Per Laws 2005, Chapter 306 (SB 1119), the DPS
Parity Compensation Fund receives 1.51 percent of the state highway fund share of the HURF VLT beginning in FY 2006.
2/ The Economic Strength Project Fund was statutorily established on May 17, 1989. Money in the fund is to be used for
highway projects that provide economic benefits to the State or local jurisdiction.
3/ Appropriation to the Department of Commerce for Williams Gateway Authority roadway projects.
4/ Appropriation for construction of the Prescott Regional Transportation Center.
5/ Appropriation for the MVD vehicle registration enforcement program (FY03 $648,000, FY04-06 $383,300, FY07 $607,300,
and FY08 $617,000)
6/ Appropriation to MVD to implement special 30-day nonresidents permit ($37,000).
7/ Laws 2004, Chapter 282 (SB 1413) transfers $118 million of the state highway fund share of HURF VLT to the
state general fund in FY 2005.
8/ Laws 2005, Chapter 313 (SB 1254) appropriated $250,000 from the HURF to the ADOT (MVD) for 3rd Party program..
9/ Laws 2007, Chapter 255 (HB 2781) appropriated $150,000 to the Arizona Department of Administration for a
hazards assessment study on state highways.
10/ Laws 2007, Chapter 257 (HB 2783) appropriated $6.7 million to ADOT for 2 MVD facilities and 1 ADOT facility.
11/ Details may not add to the total due to individual rounding.
PAGE 12
Highway User Revenue Fund
Distributions to Cities, Towns and Counties
FY 2008
COUNTY CITY COUNTY CITY COUNTY CITY COUNTY CITY COUNTY CITY COUNTY CITY
Apache $7,526,403.07 La Paz $4,194,128.72 Pima $44,060,131.05
Eagar $905,661.33 Parker $1,185,093.85 Marana $2,035,849.24
Springerville $421,016.45 Quartzsite $1,301,575.34 Oro Valley $3,002,827.95
St. Johns $787,894.80 South Tucson $429,747.42
Maricopa $103,304,609.68 Tucson $48,966,863.94
Cochise $9,052,765.25 Apache Junction $19,606.41 Sahuarita $1,067,285.22
Benson $399,204.00 Avondale $4,764,909.36
Bisbee $555,449.39 Buckeye $1,743,464.40 Pinal $17,093,823.34
Douglas $1,454,908.15 Carefree $253,404.02 Apache Junction $3,355,759.36
Huachuca City $155,427.67 Cave Creek $326,610.42 Casa Grande $3,223,474.28
Sierra Vista $3,693,409.54 Chandler $15,856,863.52 Coolidge $811,870.04
Tombstone $135,978.66 El Mirage $2,200,771.41 Eloy $1,105,113.85
Willcox $328,780.54 Fountain Hills $1,682,055.40 Florence $2,038,295.65
Gila Bend $137,588.27 Kearny $222,895.63
Coconino $10,326,805.54 Gilbert $12,333,575.78 Mammoth $174,499.33
Flagstaff $7,422,359.18 Glendale $16,646,907.18 Superior $323,276.30
Fredonia $134,975.35 Goodyear $3,173,351.37 Queen Creek $49,038.05
Page $862,301.64 Guadalupe $381,188.80 Winkelman $240.67
Williams $382,157.79 Litchfield Park $311,483.34 Maricopa $1,582,841.75
Sedona $376,592.98 Mesa $38,039,566.34
Paradise Valley $952,971.52 Santa Cruz $3,345,674.83
Gila $4,203,259.66 Peoria $9,485,281.10 Nogales $2,363,529.37
Globe $809,320.34 Phoenix $125,288,555.97 Patagonia $99,750.11
Hayden $95,717.15 Queen Creek $1,092,658.22
Miami $210,785.74 Scottsdale $16,122,736.94 Yavapai $11,817,285.32
Payson $1,665,274.22 Surprise $6,064,114.96 Camp Verde $889,531.31
Winkelman $47,371.08 Tempe $11,387,319.95 Chino Valley $1,019,407.77
Star Valley $216,210.59 Tolleson $446,415.91 Clarkdale $305,476.92
Wickenburg $417,495.50 Cottonwood $899,088.89
Graham $2,684,625.93 Youngtown $424,393.77 Jerome $27,741.93
Pima $180,269.94 Prescott $3,376,010.16
Safford $806,534.81 Mohave $12,376,450.88 Prescott Valley $2,779,879.10
Thatcher $393,680.74 Bullhead City $3,688,743.84 Sedona $648,874.13
Colorado City $394,152.17 Peoria $3,343.54
Greenlee $947,625.31 Kingman $2,497,220.40 Dewey/ Humboldt $334,118.37
Clifton $258,235.24 Lake Havasu City $5,157,689.72
Duncan $81,542.06 Yuma $12,024,938.27
Navajo $8,983,827.27 Somerton $889,407.59
Pinetop/ Lakeside $590,551.17 San Luis $2,093,903.47
Holbrook $769,175.38 Wellton $180,925.41
FISCAL YEAR 2007-2008 TOTALS: Show Low $1,399,551.00 Yuma $8,144,888.78
CITIES: $404,433,778.81 Snowflake $697,268.38
COUNTIES: $251,942,354.12 Taylor $580,115.98
Winslow $1,392,536.81
Highway User Revenue Fund
Distribution Overview
PAGE 13
Revenues from: Distribution breakdown: Distribution formulas:
$.18 Gas Tax 50.5% to State Highway Fund 7.67% to Maricopa and Pima Counties for Controlled Access with a
$.26 Use Fuel Tax (7/00) 75% and 25% split respectively. (Statutory 12.6% & Special 2.6% money)
Vehicle Registration 4 2.83% to ADOT Discretionary.
Motor Carrier Fee
44.99% of VLT (12/00) 27.5% to Cities & Towns One half distributed on basis of incorporated population and one half on
Other the basis of county origin of gasoline sales and city or town
population within each county.
3% to Cities over 300,000 Distributed to Phoenix, Tucson and Mesa based on population.
19% to Counties Distributed based on a portion of gasoline distribution and diesel fuel
consumption and on a portion of unincorporated population. The split
is as follows: 85/15 in FY 1997, 80/20 in FY 1998, 76/24 in FY 1999, and
72/28 in FY 2000 and thereafter)
PAGE 14
Highway User Revenue Fund
FY 2008 Actual Revenue Distribution Flow
(Dollars in Millions)
Use
Gas Fuel Reg. MC VLT Other
492.5 207.8 162.8 40.2 18.3 385.2 37.7
HURF
Collections
DPS
Transfer
Highway User
Revenue Fund
10.0
Counties
19%
Cities &
Towns 27.5%
Cities Over
300,000 3%
1,344.5
252.0 364.6 39.8
101.3 /4 565.4
25.3
669.6
50.5%
76.0 16.3 /5
MAG MVD 3rd
Parties
1.0
Econ. Str.
Fund
Op.
Lic.
DPS Parity
Comp. Fund
DOA
2.9 /3
7.3 /1
State
Highway Fund
ADOT
Discretionary
Urban C/A
12.6% & 2.6%
PAG
MVD/
ADOT
0.2 /2
1,326.0
NOTES:
/1. Appropriation of 617,900 to MVD for vehicle
registration enforcement program and $6.7 million
for two MVD facilities and one ADOT facility.
/2. Appropriation of $150,000 to Arizona Department
of Administration for a hazards assessment on state
highways.
/3. Per Laws 2005, Chapter 306 (SB 1119), 1.51
percent of the state highway fund share of HURF
VLT is distributed to the DPS Parity Compensation
Fund.
/4. The 12.6% (statutory) and 2.6% (non-statutory)
allocations from the State Highway Fund share of
HURF distributions.
/5. With the elimination of the VLT distribution to the
state highway fund, a distribution is made from the
state highway fund to MVD Third Parties for the
collection of VLT.
REVENUE CATEGORY DEFINITIONS
GAS OLINE TAX A per-gallon tax imposed on gasoline used by vehicles on Arizona highways;
presently this tax is $0.18 per gallon.
USE FUEL TAX Includes all gases and liquids used to propel motor vehicles on the highways in this
state except for motor fuel (gasoline). Use fuel consists primarily of diesel fuel. Diesel
fuel tax was $0.27 per gallon, but dropped to $0.26 per gallon on July 1, 2000 for “use
class” vehicles. “Non-use class” vehicles continue to pay $0.18 per gallon. Jet fuel is
exempt from fuel and use fuel taxes.
MOTOR CARRIER A fee imposed on certain commercial carriers based on vehicle weight. Category
FEE also includes: Motor Carrier License Tax, Motor Carrier Tax Penalties, late fees and interest,
and Motor Carrier Permits Tax, and application fees.
VEHICLE
LICENSE TAX An annual license tax imposed on registered vehicles in lieu of property taxes.
REGISTRATION Is made up of three distinct components:
FEES
County Registration- non-commercial and commercial vehicle registration, and
commercial weight fees.
Apportioned Registration - commercial registration fees allocated according to miles
traveled in Arizona.
Miscellaneous Registration - Non-resident Permits, Unassigned Registration, Prorate
Stickers, and Registration Penalties.
OTHER FEES Includes Title Fees, Operator Licenses, Oversize/Overweight Permits and Highway
Fines, Inquiry Fees, Use Fuel Permits and Fuel Tax Penalties, Investment Interest,
Special Plates, and Other Miscellaneous Fees, less Credit Card Fees.