The Motor Vehicle Highway Distribution Formula
The Motor Vehicle Highway Distribution is the largest source of state aid for road construction and maintenance for Indiana counties, cities and towns. In the state's fiscal year 2000 (July 1999 to June 2000) $269 million in road funds were distributed to counties, cities and towns using the "MVH" formula.
The table shows the sources and uses of the money. Revenue comes from a number of sources, but mostly from motor fuel taxes on gasoline and diesel fuel (special fuels and the motor carrier surtax). About two-thirds of the MVH revenue comes from motor fuel taxes. Most of the rest comes from the license fees paid on motor vehicles, collected by the Bureau of Motor Vehicles, and from "IRP" revenue. IRP stands for "International Registration Plan." Trucks pay registration fees to their home states, and this revenue is divided up among all the states through which the trucks travel, based on the share of road miles traveled in each state. Refunds for overpaid special fuel taxes are paid from the MVH account. Net revenue in fiscal 2000 was $692 million.
Of this money, about $118 million (17%) is paid to the State Police, Bureau of Motor Vehicles and several other agencies to cover operating costs. The remainder, $574 million, is divided among the State Department of Transportation, and the counties, cities and towns, for road construction and maintenance.
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| Revenues | ||
| Gasoline Tax | 311,419,622 | |
| Special Fuel Tax | 143,040,406 | |
| Motor Carrier Surtax | 41,115,852 | |
| License Fees | 119,623,953 | |
| IRP Revenue | 91,665,638 | |
| Other Revenues | 19,711,944 | |
| Refunds | (34,585,977) | |
| TOTAL REVENUE | 691,991,438 | |
| Expenditures | ||
| State Police | 56,830,778 | |
| Bureau of Motor Vehicles | 40,286,144 | |
| Other | 20,947,631 | |
| TOTAL ADMINISTRATION | 118,064,553 | |
| State Dept. of Transportation | 305,112,271 | |
| Counties | 182,721,278 | |
| Cities and Towns | 86,093,337 | |
| TOTAL DISTRIBUTION | 573,926,886 | |
The pie charts represent the MVH formula. The revenue for distribution is the motor fuel, license and IRP revenue, less refunds and administrative costs: $574 million in fiscal 2000. 53% of the revenue is distributed to the State Department of Transportation, which was $305 million in fiscal 2000.
The remainder goes to local governments. 15% is divided among all the cities and towns in the state, based on each units' share in total city and town population. If, for example, Smallville has 0.5% of state city and town population, it's road and street department receives 0.5% of 15% of the $574 million total distribution. This would be about $431,000. In fiscal 2000, cities and towns received $86 million from the MVH distribution.
The remaining 32% of the total distribution goes to counties, about $183 million in fiscal 2000. The formula for dividing this revenue among the 92 counties is more complex. 5% of the county share is divided in 92 equal parts. 65% is based on each county's share in total county road miles. 30% is based on each county's share of total state motor vehicle registrations (all registrations).
If, for example, Wobblyraft County has 1% of all county road miles, and 2% of all state motor vehicle registrations, its MVH distribution would be:
| MVH Distribution to "Wobblyraft County" | $183 mil. | County Shares | County Revenue | |
| Equal | 5% | $9 mil. | 1/92 | $98,000 |
| Road Miles | 65% | $119 mil. | 1% | $1,200,000 |
| Vehicle Registrations | 30% | $55 mil. | 2% | $1,100,000 |
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Total MVH Revenue |
$2,398,000 |
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In the MVH formula, $9 million would be distributed equally, so Wobblyraft would get 1/92, about $98,000. $119 would be distributed based on road mileage, so the county would get 1%, $1.2 million. And $55 million would be distributed based on vehicle registrations, so the county would get 2%, $1.1 million. The total is about $2,398,000.