Gasoline Excise Tax — Historical Revenues: Fact Sheet

Gasoline Excise Tax — Historical Revenues: Fact Sheet

Order Code RS21521
Updated May 24, 2005
CRS Report for Congress
Received through the CRS Web
Gasoline Excise Tax —
Historical Revenues: Fact Sheet
Louis Alan Talley
Specialist in Taxation
and
Pamela J. Jackson
Analyst in Public Sector Economics
Government and Finance Division
Summary
The federal government first imposed a gasoline excise tax with the passage of the
Revenue Act of 1932. The rate was one cent per gallon. During the early years of the
tax, the proceeds went into the general fund of the Treasury. It was not until 1956, when
Congress established the Highway Trust Fund, that revenue receipts from the gasoline
tax were dedicated to a trust fund for highway programs. The gas tax was regarded as
a user tax. Subsequently, in response to large federal budget deficits, Congress returned
a portion of the gasoline excise tax to general revenues (from December 1990 until
October 1997). After that period, the entire amount of the tax was redirected once again
to the Highway Trust Fund. The authors plan to update this fact sheet to reflect
legislative changes and collection figures.
The highway-related excise taxes (including the tax on gasoline) were extended
through September 30, 2005, under the tax title of the Transportation Equity Act of the
21st Century, known as TEA21. The highway and transit funding programs of TEA21
first expired at the conclusion of FY2003. Five extensions have continued funding
through May 31, 2005. Both the House and Senate have passed highway reauthorization
bills. Both versions of these bills would continue the gasoline excise tax at the current
tax rate through September 30, 2011. The Senate bill adds $11.2 billion in additional
funding, all of which is fully offset by revenue provisions. It has been argued that this
additional revenue is needed so that all states will receive as much in federal highway aid
as they pay in federal gasoline excise taxes. A conference committee will try to reconcile
the differences between these two bills. The President remains committed to the funding
level he proposed in his FY2005 budget and as included in the House legislation.
Congressional Research Service ˜ The Library of Congress

CRS-2
Table 1. Gasoline Excise Tax Collections
(Collection Receipts in thousands of dollars, Tax rate in cents per gallon)
Fiscal Year
Collections
Tax Rate
Fiscal Year
Collections
Tax Rate
1933
124,929
1.0
1969
3,283,715
4.0
1934
202,575
1.0
1970
3,430,076
4.0
1935
161,532
1.0
1971
3,547,678
4.0
1936
177,340
1.0
1972
3,741,160
4.0
1937
196,533
1.0
1973
3,927,535
4.0
1938
203,648
1.0
1974
4,087,669
4.0
1939
207,019
1.0
1975
3,980,412
4.0
1940
226,187
1.0
1976
4,180,860
4.0
1941
343,021
1.5
1977
4,322,077
4.0
1942
369,587
1.5
1978
4,444,484
4.0
1943
288,786
1.5
1979
4,525,065
4.0
1944
271,217
1.5
1980
4,218,147
4.0
1945
405,563
1.5
1981
4,007,956
4.0
1946
405,695
1.5
1982
4,214,373
4.0
1947
433,676
1.5
1983
4,904,580
4.0
1948
478,638
1.5
1984
9,021,518
9.0
1949
503,647
1.5
1985
9,062,387
9.0
1950
526,732
1.5
1986
8,854,674
9.0
1951
569,048
1.5
1987
8,925,028
9.0
1952
713,174
2.0
1988
9,167,139
9.1
1953
890,675
2.0
1989
9,725,089
9.1
1954
835,610
2.0
1990
9,465,647
9.1
1955
953,201
2.0
1991
14,468,500
14.1
1956
1,030,397
2.0
1992
14,759,324
14.1
1957
1,458,217
3.0
1993
14,753,020
14.1
1958
1,636,629
3.0
1994
19,794,300
18.4
1959
1,700,253
3.0
1995
19,918,500
18.4
1960
2,015,863
4.0
1996
19,653,800
18.3
1961
2,370,303
4.0
1997
20,836,000
18.4
1962
2,406,001
4.0
1998
20,644,998
18.4
1963
2,497,316
4.0
1999
21,236,659
18.4
1964
2,618,370
4.0
2000
21,040,777
18.4
1965
2,687,135
4.0
2001
20,619,195
18.4
1966
2,824,189
4.0
2002
20,942,138
18.4
1967
2,932,894
4.0
2003
20,169,608
18.4
1968
3,030,792
4.0
2004
Full Year N/A
18.4
Sources: Collection figures were taken from the Internal Revenue Service’s Statistics of Income Bulletins. See v. 20,
no. 3, Winter 2000-2001, p. 144 and v. 24, no. 3, Winter 2004-2005, p. 152.