OTA Dispatch Issue 1, 2023

12 Oregon Trucking Association, Inc. Oregon Truck Dispatch Oregon Tops List of Most Expensive States for Trucking WHEREVER YOU TURN, the costs of everyday items have increased, and businesses have not been spared from these inflation-driven price increases. However, new research has shown that the trucking industry in Oregon bears a significantly higher burden, and pays more in taxes and fees, than operators in other states. Based on a recent American Transportation Research Institute (ATRI) study, Oregon is the most expensive state to operate a commercial heavy vehicle when it comes to truckingspecific taxes out of the 50 states and Washington, D.C. These trucking-specific taxes are in addition to regular business taxes that trucking companies also pay. In 2023, Oregon trucking companies pay $33,064 in state and federal highway user taxes each year ($22,508 in state taxes and $10,556 in federal taxes). To put that into perspective, here are the other states that round out the top five: ` #2—Connecticut: $30,014 ` #3—Pennsylvania: $25,533 ` #4—California: $25,458 ` #5—Illinois: $23,497 The least expensive state to operate a commercial heavy vehicle in terms of trucking-specific taxes is Alaska at $12,339 (State–$1,783; Federal–$10,556). Our neighbors to the north also pay less that Oregon operators. Washington comes in at number eight, with $20,633 in trucking-specific taxes. Even while trucking in Oregon faces a disproportionately higher tax burden than our colleagues in other states, the cost of trucking has increased exponentially in recent years all across the country. New research from ATRI found that the total marginal cost of trucking grew by 12.7% in 2021 (the most recent data available) to $1.855 per mile, the highest on record. Leading contributors to this increase were fuel (35.4% higher than in 2020), repair and maintenance (18.2% higher than in 2020), and driver wages (10.8% higher than in 2020). On a costper-hour basis, costs increased to $74.65. Our team at OTA recognizes that the constantly increasing cost of trucking in Oregon is not sustainable, which is why we continue to advocate for reasonable policies and legislation to alleviate the burdens on our operators. If you’re interested in lending your voice to our advocacy activities, please contact our team at [email protected]. Together, we can help raise awareness about the increased cost of trucking and advocate for reasonable fee structures for trucking operators in Oregon. Did You Know? Oregon is the #1 state for state and federal highway user taxes. Oregon trucking companies pay $33,064 in state and federal highway user taxes each year. Oregon trucking companies pay $3,050 more than the next highest taxing state. State Ranking by $ Total State Total Annual State Highway User Fees ($) Federal Fuel Heavy Vehicle Use and Excise Taxes Total State and Federal Highway User Fees 1 Oregon $22,508 $10,556 $33,064 2 Connecticut $19,458 $10,556 $30,014 3 Pennsylvania $14,977 $10,556 $25,533 4 California $14,902 $10,556 $25,458 5 Illinois $12,941 $10,556 $23,497 Top Five States with the Highest Highway User Taxes

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