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Bureau of Municipal Services

Liquid Fuels

Counties: The Commonwealth allocates one-half cent of the tax collected on each gallon of liquid fuels to a special fund known as the Liquid Fuels Tax Fund for distribution to counties. The amount a county receives is based on a formula established in the Act. It is based on the ratio of a county's average gas consumption in the years 1927, 1928, and 1929 to the total statewide consumption in those years. The allocations are calculated semi-annually based on actual revenues as certified by the Department of Revenue and distributed by the Bureau of Municipal Services to the counties in June and December. Municipalities: The allocation of these funds to municipalities is based on the ratios of mileage and population of the municipality to the state totals, and the revenues must be used on the roads and streets for which the municipalities are legally responsible. That is, 50% of the funds are distributed based on a municipality’s proportion of local road mileage to the total local road mileage in the state, and 50% on the proportion of a municipality's population to the total population of the state. A municipality's local road mileage is verified by periodic road surveys conducted by the Bureau of Municipal Services of the Department of Transportation. Municipalities should report mileage changes (Form MS-990) to the district Municipal Services office by Sep-tember 1st of each year, so that mileage changes can be reviewed and credited to the municipality for the following year. Counties can file their MS-991, MS-991, MS-993 and MS-340 forms and Municipalities can file their MS-965 forms electronically via the website.


A portion of the fines and penalties collected by State Police are disbursed to each municipality based on the Liquid Fuels formula (population and road mileage). There are no forms to file for this payment. The payment is calculated automatically and disbursed to the municipalities. Payments are made in June and December of every year.


The Highway Transfer “Turnback” Program allows the transfer of functionally-local state-owned roads, serving a local traffic purpose, from state government to local government ownership. Roads that are candidates for transfer are those that have low average daily traffic, or would benefit the municipality both socially and economically. After the road is turned back to the municipality, PennDOT provides money to the municipality each year to cover the costs associated with maintaining the roadway at a rate of $4,000 per mile. PennDOT releases annual maintenance payments on April 1, two years after the year of transfer

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