Mobilizing the Region

Issue 218 April 30, 1999



Booming Truck Industry Wants Tax Relief


A truckers' organization, the Owner-Operator/Independent Drivers' Association has sued New York, Ohio, Indiana and Illinois for fuel tax rebates for mileage driven on toll roads, according to the Journal of Commerce. The group argues that because the NY State Thruway and other toll roads are self-financing via toll collections, gas tax collection from trucks that use those roads constitutes "unfair double taxation and a burden on interstate commerce. Commercial truck owners must annually reconcile fuel-tax payments with mileage driven in each state, filing returns with the International Fuel Tax Association. Each year, the association transfers tax receipts between states depending on truck-miles driven on each state's roads.

It is unclear whether the truckers' suit estimates overall social expenditure in the four states to keep trucks moving. Heavy vehicles cause the majority of road damage, and use non-toll roads extensively. A 1994 report issued by the Tri-State Transportation Campaign found that overall roadway transportation in NY State cost roughly $2 billion more per year than the state received in all forms of road user fees like fuel taxes, road tolls and registration fees. Meanwhile, economic reports suggest that the freight-hauling industry, especially the trucking sector, is enjoying exceptionally prosperous times.



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