Truck-only VMT tax places unfair burden on truckers, OOIDA says

Truckers refuse to be singled out. That’s the message from OOIDA President Todd Spencer about any proposals that would create a truck-only vehicle-miles-traveled tax as a way to make the Highway Trust Fund solvent.

OOIDA sent a letter on Tuesday, March 16, to the leaders of Senate Committee on Finance in opposition of a truck-only VMT. The Association also informed lawmakers that inclusion of a truck-only VMT in the next highway bill would likely lead to the legislation’s “ruin.”

“We are disappointed that this controversial and discriminatory proposal has resurfaced, as our industry has consistently supported increasing Highway Trust Fund revenue through equitable increases to existing user fees,” Spencer wrote. “The inclusion of such a divisive policy in the next surface transportation reauthorization would instantly eliminate our support for the bill and likely destroy any hope for its passage.”

OOIDA said that truckers are already paying more than their fair share into the Highway Trust Fund and that the decreases in funding from the fuel tax are coming from passenger vehicles, not commercial motor vehicles.

“Proponents of a truck-only VMT have insinuated that truckers don’t pay their fair share into the Highway Trust Fund,” Spencer wrote. “This is preposterous. Not only is the trucking industry currently paying more than its fair share, a report by the Congressional Budget Office found Highway Trust Fund revenues derived from motor carriers through the heavy-vehicle and tire taxes will increase over the next decade.”

OOIDA also noted that truckers are on the hook for supplemental taxes that other highway users do not pay.

“Clearly, our industry is not the problem,” Spencer wrote. “If Congress would like to properly address diminishing Highway Trust Fund returns, it must be honest about the driving force behind them. Rather than singling out trucks, you should start by ensuring passenger vehicles are also providing stable and reliable revenue for our highway infrastructure.”

OOIDA also reminds lawmakers that trucks’ requirement to have electronic logging devices doesn’t mean a quick transition to using ELDs to track a truck’s mileage for use in a VMT tax. Current law prohibits ELDS from being used for anything other than monitoring hours of service.

Hitting truckers, who have been lauded as heroes for providing Americans essential goods during a pandemic, with a truck-only VMT tax would be devastating, OOIDA said.

“Many lawmakers in Washington have been rightfully commending professional drivers for their tireless working keeping the nation healthy and safe during COVID,” Spencer wrote. “Saddling them with discriminatory, disproportionate and unproven new tax system is a terrible way to demonstrate your support and appreciation.”

OOIDA said that lawmakers’ lack of courage to raise necessary revenue on all users means some want to place the burden on the trucking industry.

“Truckers have always been willing to pay more into the system, but they refuse to be singled out,” Spencer wrote. “Make no mistake, the Senate’s embrace of a truck-only VMT in the next highway bill will be the legislation’s ruin.” LL