OTA Dispatch Issue 4 2017

27 www.ortrucking.org Issue 4 | 2017 pounds operating under highway variance permit. A truck weighing 90,000 pounds with six axles creates more wear and tear than a truck weighing 90,000 pounds with eight axles, so weight mile tax Table “B” rates change depending upon the number of axles. Tax rates on both tables include empty and loaded-at-less-than-declared miles. Non-divisible loads over 98,000 pounds are not eligible for Table “B” rates; rather, they are subject to the Road Use Assessment Fee. Enforcement of the weight mile tax in Oregon actually begins with the vehicle registration process. A motor carrier must establish a declared weight for every configuration in which a vehicle will operate at the time of registration. A declared weight is the highest loaded weight that a given truck configuration will haul during a reporting period. Only one declared weight can be established for each truck configuration per reporting period. For example, the same power unit (truck tractor) may be registered with three different declared weights to reflect its operation pulling a single trailer, a set of triple trailers, or as a solo unit. The declared weights that are established at the time of registration become the basis for the computing and reporting weight mile tax due by the motor carrier. ODOT Motor Carrier Enforcement Officers monitor the accuracy of declared weights across the state. Understated declared weights are brought to the attention of registration and audit staff. The weight mile tax is a self-reported tax. A weight mile tax report is due monthly, quarterly or annually depending on the size of the annual tax liability. A motor carrier reports the total miles operated in the reporting period for each registered vehicle, and then determines the miles operated by that vehicle in a given configuration at each declared weight for that vehicle and applies the appropriate tax rate to calculate the total tax due for that vehicle. All weight mile tax reports submitted to the State are subject to audit. All motor carriers are “audited” by the Motor Carrier Transportation Division of ODOT every three years. The form such an audit may take, however, does vary. In a “Review” an analyst looks at a carrier file maintained by ODOT and either determines that no adjustments are needed or the file is referred on for deeper review. No carrier contact is usually required in such a review and the file is put away. In a “Desk” or “Office Audit” an audit is completed in our office with no face-to-face carrier contact. Such an audit may involve additional records requested from the motor carrier. In a full-blown “Field Audit” an audit is completed with face-to-face contact with the motor carrier in ODOT’s office or theirs and additional carrier records are generally received and reviewed. There are various kinds of audits. A “Month to Month” audit is completed by analyzing activity in every month of the audit period. In a “Sample” audit an analysis is made of randomly selected months in the audit period. The results are applied to all other like months. “Stratification” audits group similar business periods based on factors such as seasons, tax years, etc. A “1-in-X-Sample” randomly selects vehicles in randomly selected months and applies the results to all vehicles in all like periods. There are many adjustments that can be made to a carrier weight mile tax return such as mileage adjustments due to arithmetic error or an unreported trip; weight adjustments resulting from an understated declared weight; and use of an inappropriate tax rate. In essence, an auditor is utilizing the wealth of information that is maintained by ODOT (scale crossings, fuel purchases, safety Enforcement of the weight mile tax in Oregon actually begins with the vehicle registration process. A motor carrier must establish a declared weight for every configuration in which a vehicle will operate at the time of registration.