WEIGHT DISTANCE TAX
IFTA is not the only tax you are required to pay when you cross into other jurisdictions. In addition to IFTA, there is the HVUT 2290 Tax (we will go over this in another blog post) and the four states that require a weight distance tax as well (Oregon, New Mexico, Kentucky and New York).
Weight distance tax is typically dependent on your truck’s weight and how many miles you traveled within a period of time. As a rule, taxes are due on the last day of the month following the end of the quarter. However, in Oregon until you have succeeded at meeting a 12 consecutive month filing history along with other factors, you must file monthly.
- Q1 (January-March): April 30
- Q2 (April-June): July 31
- Q3 (July-September): October 31
- Q4 (October-December): January 31
Although the title for the name of this tax may not be exactly the same in these states, here are the states that require a weight distance tax filing:
KENTUCKY HIGHWAY USE TAX
A carrier with a vehicle weight equal to or greater than 59,999 pounds is required to register and pay for the Kentucky Highway Use Tax (KYU) at a rate of $0.0285 cents per mile. A registration can be completed online or by mail at drive.ky.gov. Online registration is the only way to get an immediate KYU Number upon completion, whereas mailing the application can take 2-3 weeks for processing. Similar to an IFTA filing, the quarterly tax filings will be completed online by registering with a Kentucky Application.
For carriers who make infrequent trips into the state, Kentucky does allow carriers to purchase a one-time temporary permit for irregular trips through the state. However, depending on how many times a permit is requested, they may require you to set up an account for future use.
NEW MEXICO WEIGHT DISTANCE TAX
If you’re hauling a vehicle with a gross vehicle weight that exceeds 26,000-80,000 pounds in the state of New Mexico, you will need to register and pay the New Mexico Weight Distance Tax. Every quarter you’ll need to file and pay the appropriate taxes to the New Mexico Motor Vehicle Division, which can be done electronically at tap.state.nm.us. Even if you have quarters that no miles have been traveled. A filing still must be made showing the zero miles.
New Mexico also provides the ability to purchase temporary permits for those who need to haul within or through the state. Their trip permit must be obtained at a port of entry either before or when you cross state lines. The temporary trip permit is valid for only 72 hours and the fee will be determined by your mileage and vehicle weight.
NEW YORK HIGHWAY USE TAX
New York imposes a Highway Use Tax (HUT) on any motor carrier using New York highways with a gross vehicle weight over 18,000 pounds. Carriers traveling in the state of New York are required to register and obtain a New York HUT certificate and decal. To register, fill out Form TMT-1 or use their online registration system.
Highway use tax returns may be filed either by mail or online.
If you only travel occasionally through New York, you can get a trip certificate of registration for a $25 fee. This trip permit allows you to operate in New York State for three days after the date it was issued. The permit will expire at midnight of the third day.
OREGON WEIGHT-MILE TAX
An Oregon Weight-Mile Tax will be required of commercial vehicles having a combined weight of 26,000 pounds or more, and traveling in Oregon. A completed Oregon Weight Receipt and Tax Identifier (OWRATI) application will need to be mailed to the Oregon Department of Transportation, Motor Carrier Transportation Division. You will also be required to file a Highway Use Tax Bond with the Oregon Department of Transportation starting at $2,000 for one vehicle. Most motor carriers are required to report mileage tax on a monthly basis, by the last day of the following month. You can access online services at https://www.oregontruckingonline.com/. If you meet the eligibility criteria, you can file quarterly. Eligibility factors are:
- 12 consecutive month filing history that includes:
- No suspensions relating to payments of taxes or fees.
- No revocations of your IFTA tax license.
- Less than 25% of late tax filings
- No repayment plans.
- No delinquencies in payments for over-dimensional permit fees or road use assessment fees.
- No audits in the last 36 months resulting in assessments that exceeded reported fees by 15%.
If you travel in any of these states, FR8 Solutions is here to help!