Right Side of the Law

It’s important to stay atop the regulation game when running your business

By Max Kvidera

Whether you lease on with a larger carrier or remain independent, you’ll need to stay on top of and understand all of the legal requirements. If you have your own authority or are seeking it, you’ll have to deal with three areas — the authority itself, apportioned license plate and your tax account. To run on your own, you’ll need authority, whether it’s hauling exempt products such as fresh produce or seafood that aren’t regulated by the Federal Motor Carrier Safety Administration and doesn’t require a Motor Carrier number or as a for-hire motor carrier, with an active U.S. Department of Transportation number and Unified Carrier Registration, says Carol Pense of The Permit Connection. Once you get the authority, you can run legally in all 48 continental states.

Depending on where you want to operate, the states covered on the tag for the apportioned license plate will designate where you can run legally.

On the tax side is IFTA, the International Fuel Tax Agreement, that covers fuel tax collection for most states. Three states — Kentucky, New Mexico and New York — supplement IFTA with an extra weight-distance tax based on the number of miles you run in those states. Oregon doesn’t participate in IFTA, imposing instead a tax per trip in the state or issuing a permit to collect taxes later based on mileage over a period of time.

“I have noticed a trend in the last couple of years in increased audits,” says Bernadette Schein, owner of Professional Truckers Consultants. “I’m seeing much bigger emphasis on the trip reports having odometer readings and city and state. Fines have been significant lately.”