News

Motor License Fund revenues up slightly in January

February 4, 2010

After seeing Motor License Fund (MLF)* revenues rise and drop over the past six months, the state Department of Revenue reported a small increase in January, representing the second straight month of slight gains. The MLF received $305.7 million in the month of January, which was $9.1 million above estimate. Total fiscal year-to-date collections are approximately $1.6 billion, which is $24.8 million, or 1.6%, below estimates.

Last fiscal year’s budget estimate for the Motor License Fund was $2.73 billion and collections for the year were only $2.55 billion, thereby falling short of estimates by $175.8 million. The FY 2009-10 estimate is $2.63 billion. To provide perspective, PennDOT estimates that for every 1 cent of gasoline tax approximately $62 million in revenue in generated. Therefore, with the MLF falling short by $175 million last year, approximately 3 cents of the fuel tax was eroded by decreased revenues.

*The MLF is the constitutionally protected account that is used to fund the commonwealth’s highway program. MLF revenues consist of fuel taxes, license and registration fees, fines and penalties, and misc. sales.

Sorry, Comments are closed.

Comments

>