Idaho Lawmakers Vote to Kill Ton-Mile Tax

Repeal of Idaho's weight-distance tax received legislative approval from the state House of Representatives on March 31.

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The 61-5 vote means trucking needs only the signature of Gov. Dirk Kempthorne, who has pledged his support for the measure, to knock down another state's weight-distance tax.

The legislation would increase registration fees for vehicles in replacing the tax, which brought in $40 million a year. The new fees would be based on maximum registered vehicle weight and three mileage ranges: under 7,500 miles, 7,501 to 50,000 miles and above 50,000 miles.

In general, the switch from the weight-distance tax to flat registration fees would mean lower tax payments for long-haul interstate carriers and higher taxes for lower-mileage intrastate truckers.

Idaho legislators were prompted to get rid of the weight-distance tax when a federal judge sided with American Trucking Associations in a lawsuit that claimed the two-tiered tax discriminated against interstate carriers. Another outcome of the decision is a $27 million damage payment still pending in the state Legislature that would go to those who overpaid the tax.

Weight-distance taxes have long been a target for trucking. Industry representatives say the tax system is easily evaded and its paperwork-intensive filing requirements are an unnecessary burden when registration fees and fuel taxes can do the same job.

When Kempthorne signs the bill, it will leave Kentucky, New Mexico, New York and Oregon as the remaining states with a weight-distance tax on their books.