OTA Dispatch Issue 4 2019

Issue 4 | 2019 www.ortrucking.org 9 1773; amended Pub. L. 110–244, title III, §301(q), June 6, 2008, 122 Stat. 1617.) The AMENDED federal law in 2012 therefore allowed for the requirement for the Oregon OWRATI to continue. However , in a 2016 class action lawsuit, an Albany County trial court held that flat highway use registration and decal fees charged to heavy motor vehicles operating on New York public highways discriminate against non-New York based businesses in violation of the Commerce Clause of the U.S. Constitution. Owner Operator Indep. Drivers Ass’n et al. v. N.Y.S. Dep’t of Taxation and Fin., No. 5551-13 (N.Y. Sup. Ct., Albany Cnty. Jan. 22, 2016). The trial court declared the registration and decal fees unconstitutional even though they amount to only $15.00 and $4.00, respectively, and are charged once every three years. The plaintiffs filed a complaint in New York Supreme Court (a trial court) seeking injunctive and declaratory relief and a refund of registration and decal fees. The complaint alleged, among other things, that the registration and decal fees constituted an undue burden on interstate commerce in violation of the Commerce Clause because they imposed a higher per mile tax rate on out-of-state trucks. Prior to the outcome of the class action lawsuit in New York, the highway use tax was based on the gross weight of a vehicle and the number of miles such vehicle was operated on New York highways in a manner not too different than how weight mile tax in Oregon operates. The highway use tax itself was not at issue in the class action lawsuit. Carriers with vehicles subject to the New York highway use tax were required to apply for a certificate of registration and pay a $15.00 fee (Tax Law § 502(1)(a)). The New York State Department of Taxation and Finance (the “Department”) was also authorized to “require the use of decals as evidence that a carrier has a valid certificate of registration,” and charge $4.00 for each decal (Tax Law § 502(6)(a)). These requirements were struck down by the court. Of note, the court said the related fee was unconstitutional (greater cost per mile on out of state trucks than on New York trucks = commerce clause violation), not the credential itself. The Oregon Trucking Association took note of these legal precedents and could not help but recognize the nexus to the weight mile tax system and associated weight receipt requirements in Oregon. A discussion was then initiated with the Oregon Department of Transportation to review these circumstances. If challenged, ODOT could have simply asked the legislature to reduce the statutorily prescribed fee for the credential to zero. The state would realize a revenue loss (approximately $5M per biennium) but could still require the OWRATI credential be displayed. OTA members suggested that they did not want to have to put a paper credential in every truck wherever they may be arguing that today roadside inspectors do not look at the paper and rely on computer database. To its credit, the Motor Carrier Transportation Division of ODOT was receptive to this line of reasoning from OTA and opted to act in accordance with their mission statement, i.e. “The mission of the Motor Carrier Transportation Division is to promote a safe, efficient, and responsible commercial transportation industry by simplifying compliance, reducing regulatory requirements, wherever appropriate, preserving the infrastructure, enhancing the private/public partnership, fostering effective two-way communication, and delivering superior customer service while recognizing the vital economic interests of the commercial transportation industry.” House Bill 2592 eliminated the paper weight mile tax receipt and the associated $8 fee. How will business be conducted going forward? The September edition of the internal MCTD newsletter had this to say: “HB 2592 was this session’s transportation bill that includes several technical corrections to HB 2017 (the Keep Oregon Moving bill of 2017) and other programmatic changes. The bill incorporates a concept that came directly from MCTD— eliminating the weight receipt—intended to save the industry millions of dollars a year in fees and administrative expenses. With its passage, beginning September 26, 2019, motor vehicles 26,001 pounds or greater will enroll in the Weight-Mile Tax Program and will no longer purchase or be issued a weight receipt. Instead, we will issue Oregon-based motor carriers renewing their Oregon vehicle registration, cab cards and stickers for the next calendar year, and their weight-mile tax enrollment will roll over for the next calendar year. Out-of-state motor carriers with an established account will enroll their vehicle(s) by mail, phone, or via Oregon Trucking Online (TOL). Both Oregon based and out-of-state carriers that enroll vehicles will receive a weekly list as confirmation for these additions. A vehicle remains enrolled until the motor carrier cancels the vehicle’s enrollment. Vehicles under established accounts without a permanent base plate will be receive a Temporary Enrollment Document (TED), which will replace the Temporary Oregon Weight Receipt and Tax Identifier (TOWRATI). All TEDs expire at the end of each calendar year. Motor carriers without an established account will be able to purchase a temporary pass prior to operation, per usual. Motor carriers operating in Oregon are still required to file and pay their weight-mile tax, monthly or quarterly, until they cancel the vehicle’s enrollment. Motor carriers can cancel a vehicle’s enrollment from the Weight-Mile Tax Program by calling or visiting MCTD, or logging onto trucking online. In addition to eliminating the weight receipt, MCTD is working to enhance the public database currently available through TOL, a concept brought forward during stakeholder engagement. This will allow fuel sellers and enforcement officers to verify motor carrier’s enrollment in the Weight-Mile Tax Program.” OTA is appreciative of the collaborative approach that ODOT took to addressing this issue of concern to OTA members. And, now you know the “Rrrrrest of the story.”