Vehicle and fuel tax collections take a dip in October

November 2, 2010

The Commonwealth of Pennsylvania reported slightly lower than expected Motor License Fund (MLF)* collections in October.  The MLF received a total of $222.8 million for the month, which is $2.4 million below expectations.  The State Department of Revenue reported that total fiscal year-to-date collections are approximately $838.6 million and that is approximately 4.1% above estimate.  Overall, the MLF is still yielding far less than needed for an adequate highway program. 

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. 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.