You do realize that we haven’t raised our gas taxes in forever, right? And, most (OK, 30+%) of the Highway Trust Fund comes from the fees truckers pay. If we add in all the fees truckers pay (state and federal), the total approaches the halfway point, for sure.
All big trucks (those capable of 55,000 pounds gross weight or more) are required to register with the Federal government (and pay a highway tax, via Form 2290, to the IRS) when a new truck is added to the road. But, that’s a one and done deal.
It’s the IFTA (International Fuel Tax Agreement- it’s international because it covers the Continental US and Canada) taxes are filed quarterly for all trucks with 3 or more axles- or are capable of gross vehicle weights of 26,001 pounds or more. (By the way, that GCWR- gross combined weight rating- is the cutoff between requiring a Commercial Driver’s License [CDL] or not.) Unless that truck is based in Virginia, Kentucky, or Indiana. (Maybe now is a good time to remind drivers that the Worker’s Compensation rates for truck drivers should be considered when you decide the primary registration of that truck.)
The IFTA taxes are paid quarterly. And, the basis is not uniform. (Of course not- that would make things logical and easy!) The choices states use are weight-distance, highway use, or ton-mile- and a few states have a sweetener (one that make you retch, not smile) – an annual “property valuation” tax that is added to the truckers’ bills.
The taxes are paid as a fleet- or by each individual truck. (By the way, most carriers have begun to pay these taxes for their contracted drivers, because if the owner-operator under contract fails to pay the taxes, the carrier is stuck with the bill- plus penalties and interest. Independent truck drivers with their own carrier authority pay the bills themselves, of course.)
Back when we started our trucking firm, a fair number of states had their own registrations, forms, and fuel tax decals- even surety bonds. So, the sides of our trucks were plastered with all these different fuel tax “decals”.
That’s all history now. We now just have to amass the mileage and fuel purchases by state by quarter. And, back when those decals applied, our drivers were provided routes for their deliveries- and for where they bought their fuel. Because if we bought enough fuel in each state (basically matching the tax collected via fuel taxes to the tax due because we used its roads), then no additional funds had to be spent each quarter.
Most truckers no longer do such balancing- because so many states have special surcharges to boot. (The surcharge combines a pump rate with a surcharge [11 cents per gallon in Indiana, for example; Kentucky uses a weight-distance tax of 2.85 cents per mile driven in the state] to total their desired “tax rate“.)
You know the rule about taxes? Nothing is certain in life- but death and taxes. With truckers, it’s pay now or pay later. There’s no way around it.
And, you thought filing your quarterly employer tax forms was overwhelming.
By the way, given the impending introduction of electric trucks and with the precipitous drop in fuel taxes, many states are seeking out new programs. Road-use taxes that will charge a per-mile fee; there’s even a new pilot program (which won’t be collecting taxes, just data) in Washington. Oregon and California are also considering similar programs.
Interesting – I had no idea that the States had programs which tax truckers for road use. I’ve been reading different bits and pieces on your blog about the future introduction of electric trucks so it will be interesting to see how States adapt with new programs.
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Not only for the electric trucks- but for the electric cars, and the better gas mileage.
For years, the Feds and the states relied on highway taxes for all their infrastructure. Then, they added mass transit costs into the mix- just as gas mileage increased, decreasing the cash collected from the taxes- and then add the electric vehicles and you can see how this problem escalates.