Congressman says truckers pay enough into Highway Trust Fund

Congress wants to look for ways to generate more revenue for the Highway Trust Fund, it shouldn’t look in the direction of truck drivers.

That was the message from Rep. Mike Collins to fellow lawmakers during a House Highways and Transit Subcommittee hearing on April 29. The Republican from Georgia, who owns a trucking company, said that truckers need to be treated fairly.

“Truckers have paid enough into the tax system,” Collins said.

He then relayed some of what truckers have to pay.

“I just want to take a few minutes and speak from the perspective of a trucker because I’m in the trucking business … The first thing I want to start out with is just a list of taxes we pay in the trucking industry,” Collins said.

“First of all, we pay for IRP tags, which is supposed to be the International Registration Plan for every truck and every tag every year. Then we’ve got (Federal Excise Tax) taxes on new purchases, which is based on the purchase price. When I bought my first truck in the early ’90s that was fully loaded and decked out, it was $81,000. Now, it’s pushing over $200,000 per truck. Trailers are the same way.

“We pay FET tax on every tire we buy – and by the way, there are 18 tires on an 18-wheeler, and we use a lot of them. We pay fuel tax based on fuel mileage in every state across this country no matter whether you buy fuel in that state, and the tax rate is based on the tax rate for that state.

We also pay the federal Highway Use Tax, which has gone up over years. We used to pay it based on how many trucks you had over the past year. Now you pay it up front on how many trucks you have today in one lump sum. There is no refund if you wreck or sell the truck … That’s what we have to pay to stay on the road.”

Collins then criticized the government for using taxpayer funds to create bike paths and support electric vehicles rather than investing in traditional infrastructure.

“We had to watch as our taxpayer dollars were spent on something that was unnecessary when we’re out there sitting in congested roads, can’t move … Roads with potholes that need fixed … Bridges that need replaced,” Collins said.

Highway Trust Fund

The Highway Trust Fund, which is the main funding source for highway and bridge projects, generates revenue through fuel taxes.

Rep. David Rouzer, R-N.C., said that Congress must take steps to address shortfalls in the current system. For instance, electric vehicles – despite having heavier batteries – do not contribute to the fund.

“Obviously, gas tax revenue will continue to decline as cars become more fuel efficient,” Rouzer said. “Electric vehicles obviously require no fuel and therefore are not paying into the Highway Trust Fund. (Congressional Budget Office) estimates gas tax revenues, the majority of Trust Fund receipts, will decline by nearly 40% over the next decade.”

House Transportation and Infrastructure Committee Chairman Sam Graves, R-Mo., introduced a proposal to assess new annual fees of $200 on electric vehicles, $100 on hybrid vehicles and $20 on most other passenger vehicles. On April 30, Graves amended the proposal, removing the $20 fee on passenger vehicles and increasing the fee on electric vehicles to $250.

The Owner-Operator Independent Drivers Association supports efforts to make the Highway Trust Fund more equitable.

“America’s truckers are the backbone of our supply chain and make significant contributions to maintaining our roads and bridges by paying several taxes that support the Highway Trust Fund,” OOIDA President Todd Spencer wrote. “However, truckers remain frustrated that electric vehicles currently pay nothing to the Highway Trust Fund despite having equal access to the roads and highways maintained by taxpayers.”

Although OOIDA supports efforts to make sure that all road users pay their fair share into the Highway Trust Fund, the group opposes a provision that would impose a new $100 annual fee on small motor carriers.

OOIDA said the new fee would be used to duplicate freely accessible U.S. Department of Transportation data.

“Motor carriers should not be forced to pay $100 a year to access a website that tells brokers and other industry professionals whether or not they are permitted to operate,” OOIDA President Todd Spencer wrote in a letter to committee leaders sent ahead of the April 30 vote. “If FMCSA has determined that a carrier isn’t fit to operate, then the agency should notify carriers directly and take appropriate action. Furthermore, this system is designed to provide liability protections to brokers. In essence, carriers will be footing the bill to protect brokers from lawsuits.”

OOIDA said that the $100 annual fee would be another way to tax truckers.

“Small-business truckers already pay numerous taxes and fees to the Highway Trust Fund, and as part of this reconciliation process, we believe Congress should eliminate unnecessary fees,” OOIDA wrote. “There is broad agreement that program beneficiaries, such as road users with the Highway Trust Fund, should be the ones paying into it. Instead, motor carriers will view (the provision) as a fee they pay to provide liability protections for brokers. If Congress wants to enact this protection for brokers, it should do so with a well-defined program that isn’t funded on the backs of small-business truckers.”

Despite the opposition, the overall proposal advanced by a party-line vote of 36-30 on April 30. As of press time, the measure had been sent to the House Budget Committee. LL