Trucking is a highly regulated and taxed industry. There are a few different permits that a trucker will need to travel from state to state legally. According to Simplex Group, you will face heavy fines if you do not get the necessary permits.
If you are in the trucking industry, you already know that if you cross state lines, you must have an International Fuel Tax Agreement permit to make paying fuel taxes easier. You will also need permits based on the truck’s weight and distance traveled. You should familiarize yourself with the permits so you will always stay compliant.
The International Registration Plan
When a truck travels from state to state, it will cause more wear and tear on the road than an ordinary vehicle would. Hence, a trucking company must pay fees to the states that they travel through.
It used to be that a trucking company would have to get a permit from each state, file a weight and distance report with each state, and pay fees. The IRP creates local offices in each state that issues a weight and distance permit to trucking companies. Instead of filing a report with each state, a trucking company will file a quarterly report with their local office. The local office will receive payments and distribute the appropriate fees to each state.
Additional State Weight-Distance Fees
If you take very few interstate hauls, you can buy individual trip permits from each state. Although all of the lower 48 states participate in the IRP, some states have additional fees for distance and weight. Therefore they will require separate permits.
New Mexico Weight Distance Tax
The Land of Tomorrow taxes trucks with a gross vehicle weight of 26,000 pounds. Truckers must pay the New Mexico Weight Distant Tax quarterly. They can also get a temporary permit that will last for three days. The amount of money paid is based on the weight of each vehicle.
Kentucky Highway Use Tax
A vehicle that weighs 50,999 pounds or more must register for a Kentucky Highway Use Tax. You can register online, and it is recommended that you register at least two weeks in advance. You are allowed to get a single-trip permit, which you can use for up to 10 days.
Oregon Weight-Mile Tax
Oregon is one of the most expensive states through which you can drive a truck. If you drive a rig with a combined weight of 26,000 pounds or more, you must pay the Oregon weight mile tax. The state requires you to get an Oregon Weight Receipt and Tax Identifier application, and you must send in the application via the mail.
Additionally, you must file a Highway Use Tax Bond with the state’s Department of Transportation. This tax alone is $2,000 for every truck. You must report taxes monthly. Oregon does supply temporary passes to those planning to haul within Oregon sporadically but will only allow a maximum of five temporary passes in a 12-month period. Fees vary.
New York Highway Use Tax
New York charges a Highway Use Tax to motor carriers operating vehicles over 18,000 pounds that travel the state’s highways. The carriers must register in advance of their trip and get a New York HUT certificate and decal. If you do not travel through the state that often, you can get a three-day certificate for $25.
What Happens if You Do Not Pay a Fee?
If you are caught driving through a state without paying the appropriate fees, you face extra fines. Late or unpaid taxes can result in the suspension of your permit to operate a truck in that state. In some cases, failure to pay the weight distance tax might be considered criminal.
Your clients rely on you to get their cargo from one place to another. If your permit is suspended, you will not be able to do your job. As expensive as these permits are, it is very important to get them. Hiring a trucking compliance company is always advisable because they will ensure you have all the necessary permits.