7 www.ortrucking.org Issue 2 | 2024 ADVOCATING, EDUCATING, AND PROMOTING THE TRUCKING INDUSTRY EVENTS UPCOMING EVENTS best in the country. We have an expensive system of taxation that factors collection costs and evasion into the equation. On the positive side for trucking, Oregon passed a constitutional amendment over twenty years ago that requires the state to ensure that cars and trucks are each paying their fair share of the cost of Oregon’s roadways. I can assure you that this requirement has resulted in a complicated review process that takes place every two years and is based on a number of assumptions, but it has historically resulted in nearly perfect equity ratios of less than a 1% imbalance. Over the past three biennia however, these equity ratios began to show a larger imbalance. For the 2019–2021 period it showed that trucks were overpaying some 3.5%, and for the 2021–2023 period, the imbalance grew to 16%. The last report which was shared with the Legislature in 2023 showed a much larger imbalance of 32.4% for the 2023–2025 period which equates to trucking overpaying some $193 million per year! It also reflected that cars are underpaying 12%—so the dollar amount of the imbalance is even larger than $193 million. The constitutional requirement is for the Legislature to make an adjustment when there is an imbalance. However, with ODOT stating that they can’t afford to plow the snow from the roads during the recent winter storms, it has been virtually impossible to get leadership to make the necessary corrections to our costs. With this imbalance continuing to grow and legislative leadership unwilling to address this for several years, the OTA Board of Directors made the decision late last year to file a lawsuit. Prior to filing, several legislators took it upon themselves to propose a variety of solutions. They called for a special session to address this inequity and during the session they proposed legislation to reduce our tax rates. We chose to file our lawsuit just prior to the 2024 Legislative Session and we are moving forward with legal action. Lawsuits are complicated and lengthy. They limit clear communication and updates to OTA membership. But I want you to know that there are a number of ways that OTA is working to protect and improve your ability to do business in Oregon. We are involved in many policy battles on your behalf. Please help us by volunteering to serve on committees, write checks to TruckPAC, donate to our Legal Fund, and attend our training and events. We are all in. I hope you are too!
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