OTA Dispatch Issue 4 2017

28 Oregon Trucking Associations, Inc. Oregon Truck Dispatch inspections, highway permits issued, other observations) to compare to the information submitted by the motor carrier on the tax report. In the event an auditor finds underpaid weight mile tax obligation an audit report and billing including tax, late payment, penalty and interest is created. Advantages and Disadvantages of the Current System Advantages would include the fact that it is extremely accurate in discriminating costs between all classes of users. There is no question that it represents the most accurate and fairest assignment of costs. In other words, it most accurately provides for the notion of “use what you want, and pay for what you use.” This equity, inherent in the weight mile tax system, is impossible to achieve with a fuel tax because fuel consumption does not go up proportionately as vehicle weight increases. For example, an 80,000-pound truck burns only 15–20 percent more fuel than a 50,000-pound truck, yet the 80,000-pound truck does more than two times as much road damage. The real question here is, “How much is too great a price for equity?” Without a doubt, weight mile tax as a form of highway use taxation imposes greater administration costs on government and industry alike. Therein lies a distinct disadvantage of weight mile taxation. In summary, think of a spectrum in which one end represents administrative simplicity with less tax equity, and the other represents administrative complexity along with greater tax equity. Where do you want to fall within the spectrum? Other States Tax Systems Most states impose only a registration fee and a fuel tax. Step back and think a moment about registration fees based on age and weight. Such a tax is equitable in the sense that equal tax is applied to dissimilar vehicles that travel the same or similar annual miles. However, a registration fee is inequitable in that it does not adjust upwards or downwards in relation to dissimilar annual miles. A fuel tax is more equitable that a registration fee, but less discriminating than a weight mile tax. Other weight mile tax states have a system in place in which registration and fuels tax are uniformly applicable, and weight mile tax applies at weights of 60,000 pounds and above. Such an Highway Use Taxation, cont.