18 Oregon Trucking Association, Inc. Oregon Truck Dispatch OTA, Oregon Trucking Businesses Sue State of Oregon Over Unconstitutional Overpayment of Weight Mile Taxes IN JANUARY, THE Oregon Trucking Association (OTA), along with three Oregon trucking companies, filed a lawsuit against the state of Oregon following many years of trucks paying far more than their fair share of highway taxes. OTA member companies Combined Transport, A&M Transport, and Sherman Bros. Trucking joined the lawsuit which was filed against Gov. Tina Kotek, Senate President Rob Wagner, and House Speaker Dan Rayfield in their official capacities and against the state of Oregon and the Oregon Department of Transportation (ODOT). “For far too long, Oregon trucking companies, the vast majority of which are small, family-owned businesses, have paid far more than their fair share of transportation taxes,” said Jana Jarvis, OTA President & CEO. “By 2025, the trucking industry is expected to have overpaid by half a billion dollars. Trucking companies in Oregon simply cannot sustain paying the highest transportation taxes of any state in the country any longer.” Oregon’s constitution requires that the tax rate paid by trucks “is fair and proportionate to the costs incurred for the highway system because of each class of vehicle,” yet for years, trucking has paid more than a third of all taxes owed by Oregon motorists, despite trucks representing only 15 percent of vehicle miles traveled in the state. The lawsuit highlights the findings of the Oregon Department of Administrative Services’ bi-annual Highway Cost Allocation Study, which determines whether or not light vehicles (less than 10,000 pounds) and heavy vehicles (more than 10,000 pounds) are paying their fair share. The study has shown that for the last three consecutive two-year budget cycles, truckers have paid more than their fair share. The most recent Highway Cost Allocation Study showed that heavy vehicles were overpaying by more than 32 percent. “The extra burden on heavy vehicles is significant, immediate, and ongoing,” the lawsuit says. “ODOT has estimated that for the 2023–2025 HCAS, heavy vehicles will overpay by approximately $193 million per year. This amounts to an overpayment of more than $528,000 every single day.” The three trucking companies named in the lawsuit have collectively overpaid their weight-mile taxes by $925,000 since January 2022. The lawsuit is requesting that the court rule the overpayment of truck taxes in violation of the Oregon Constitution and that the state conduct an immediate review and adjustment of revenue sources, and have the state pay back the $925,000 to the three plaintiff companies. “Oregonians deserve safe roads, and our members are more than willing to pay their fair share—as required by Oregon’s constitution—as long as ODOT keeps up its side of the agreement,” said Jarvis. “But, to date, major road improvements have not been completed, road maintenance has been delayed, and our roads are less safe for passenger vehicles and trucks. Meanwhile, trucking companies—most of which own fewer than five trucks—are forced to pass astronomical tax rates on to consumers, who end up paying more for household goods.” When trucking taxes continue to increase, small, family-owned trucking businesses are forced to increase their prices, which forces stores and those selling goods to increase their prices, meaning consumers pay more. Alongside the lawsuit, the OTA and its advocacy team in Salem are continuing to engage with legislators about potential fixes to the overpayment issue. With ODOT claiming they lack sufficient funds—even with the astronomical overpayment by trucks—the solution to this issue will be complicated. If you’re interested in learning more about the lawsuit or getting involved, please reach out to the OTA at info@ortrucking.org. By Jennifer Sitton
RkJQdWJsaXNoZXIy MTY1NDIzOQ==