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Title: Supply Chain-based Solution to Prevent Fuel Tax Evasion

The primary source of funding for the United States transportation system is derived from motor fuel and other highway use taxes. Loss of revenue attributed to fuel-tax evasion has been assessed to be somewhere between $1 billion per year, or approximately 25% of the total tax collected. Any solution that addresses this problem needs to include not only the tax-collection agencies and auditors, but also the carriers transporting oil products and the carriers customers. This paper presents a system developed by the Oak Ridge National Laboratory for the Federal Highway Administration which has the potential to reduce or eliminate many fuel-tax evasion schemes. The solution balances the needs of tax-auditors and those of the fuel-hauling companies and their customers. The technology was deployed and successfully tested during an eight-month period on a real-world fuel-hauling fleet. Day-to-day operations of the fleet were minimally affected by their interaction with this system. The results of that test are discussed in this paper.
 [1] ;  [1] ;  [2] ;  [1] ;  [1] ;  [1]
  1. ORNL
  2. United States Department of Transportation (USDOT), Federal Highway Administration (FHWA)
Publication Date:
OSTI Identifier:
DOE Contract Number:
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Resource Relation:
Conference: TRB 95th Annual Meeting Compendium of Papers, Washington, DC, DC, USA, 20160110, 20160114
Research Org:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Org:
Work for Others (WFO)
Country of Publication:
United States
Fuel-tax Evasion; Fuel Distribution; Vehicle Instrumentation