newbie to the forum and the auto hauling industry....

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by michaelaland, May 24, 2015.

  1. michaelaland

    michaelaland Bobtail Member

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    First of my name is Michael and I thank you all in advance for your help.
    I recently bought a take 3 wedge and have a 2014 ram 3500 6.7L Dually
    I live in california and have an address in arizona as well. Will be selling home in AZ in the near future though.
    Getting ready to register truck and trailer in AZ to avoid sales tax in CA. since i just bought them in AZ anyway.
    My new auto hauling business is going to be out of san diego california.
    I am going to start out hauling local for the auction companies here in san diego.
    I would like to eventually use central dispatch to haul a few cars to az and then come back with some
    cargo trailers, I have a contact with cargo trailers in kingman and phoenix arizona.
    My questions are in regard to:
    1 plating my truck
    2 IFTA

    My truck and trailer together weigh about 15,300 lbs. I was planning on plating truck for 34k ( I would
    like to haul 4 cars when available and know I will be at 30k plus)
    As far as IFTA, Im pretty sure I have to go with IFTA if I am plated over 26k. What about crossing state lines with regard to permits etc.....

    My plans again are to move auction cars locally at first but then do the arizona loads and possibly nevada, those are the only three states i see myself working in.

    I do have a class A CDL as california requires that if GVWR of trailer is over 10k which mine is.

    Any light you can shed will be greatly appreciated.
     
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  3. SLANT6

    SLANT6 Road Train Member

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    #1-If you bought the truck and trailer in AZ, and register in AZ, what makes you think there is no sales tax?
    #2-If you are giving up the AZ residence, how do you maintain AZ registration?
    #3-Is this a real business? Or just a hobby? You are already trying to play games with registration.
    #4-I cannot remember the reason, but when I was a TM with Hadley Auto Transport in AZ, my trucks (real trucks like 75' stingers) were plated California with the main office in Santa Ana address. Like I said, I cannot remember why we did that, but I am sure it had to do with money.
    #5-There is a search function that should tell you all you need, as the subject of a dually and a 3 car has been beaten to death.
     
  4. michaelaland

    michaelaland Bobtail Member

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    #1 my residence is in Chino Valley, no sales tax and no smog, california there is both
    #2 once I sell the AZ residence, I just do a transfer to CA, no sales tax because already purchased, just transfer fee
    #3 Its a REAL business, not playing any games just taking advantage of my dual residence and avoiding the ridiculous CA taxes
    #4 sorry i dont have a real truck like yours slant, I dont have the money to purchase one right now
    #5 I did a search, couldnt find the two questions I was looking for with regard to IFTA and permitting crossing state lines
     
    Last edited: May 25, 2015
  5. brian991219

    brian991219 Road Train Member

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    Short answer to your questions, yes if your registered gross combined weight is over 26,001 pounds you will need IFTA, IRP plates, UCR, a US DOT number, MC authority, and maybe even a CA DOT number for your in-state moves (although I am not positive on that one, I don't practice in California). In my experience on the east coast, most guys with a wedge and dually register their combination at 26,000 then they stay under the apportioned plates, fuel tax, etc, but again I am not positive how it works in CA and AZ since AZ has apportioned registration on even small trucks (over 10,000 pounds). As for sales tax, does California exempt interstate motor carriers from sales tax on equipment purchases? I know many east coast states do, so you could just skip the AZ registration and transfer to CA by using your MC status?

    Another word of advice regarding the pickup truck and wedge trailer, look into the length laws in the areas you plan on running, you may not be able to legally fit 4 cars on your trailer as not all areas allow the extension ramps to be out, again I am east coast but for example New York will cite you for over length if you have your flip out ramps out and they make your trailer over 53', or even if the overhang of the cars make your trailer over 53', not sure about CA or AZ, it has been almost 10 years since I have been in CA and 3 since I have been to AZ. My point on the length is, if you can't legally fit 4 units on your trailer thern why incur all the expense and paperwork hassle for IRP/IFTA and the higher base plate costs associated with the higher weight class, unless AZ will require it to enter their state. The last time I was in AZ it was in a non-cdl flatbed tow truck (25,950 gvwr) and I was surprised to have to pay at the port of entry for a trip permit allowing me to go to Scottsdale and back out to New Mexico, again being from the east coast trucks under 26k don't have to have IRP plates or weight distance permits in any state except New York HUT.

    Sorry I couldn't give you state specific advice but hopefully you get something to think about out of this post, good luck and don't let the nay sayers get you down, we ( it is a loose partnership between myself and a good friend) started our company 12 years ago with one pickup and Kaufman wedge, now we have 3 Miller 7 cars trailers, a Chevron 4 car carrier, two 2 car flatbeds, a dually for moving campers, and a F-250 with a 2 car trailer for residential p&d in New York City. I am just about to take the plunge on a brand new 9 car Pete/Cotrell combination and another 4 car carrier. With patience and solid business practices you can make it, just don't be one of the guys that cuts corners on safety, compliance, or rates to get ahead, that never works in the long run.
     
    TN_Chief, michaelaland and Hammer166 Thank this.
  6. michaelaland

    michaelaland Bobtail Member

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    Brian, thank you so much for all your advice !!!!! I have heard bits and pieces of it all from various drivers over the past few months that I have been doing my research and I have to tell you, its a lot of stuff to think about and get right. Even some of the DMV people I have talked to dont know their right hand from their left. Its frustrating trying to figure it all out on my own because of course I want to run legal and not take any chances. So I appreciate all you have given me. I realize I have a little more research to do before I register next week. I was starting to think I might scratch the 4 car idea and just stick to 3 under 26k when I am running to AZ because the cargo trailers will be under the 26k so to avoid the IFTA and IRP will be a lot less for me to deal with for now. Then once I have figured it all out, do like you and eventually step up to a single axle dually big rig and larger trailer. Thanks again Brian for your help, much appreciated. God bless my brother....
     
  7. michaelaland

    michaelaland Bobtail Member

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    Terry270 Thanks this.
  8. brian991219

    brian991219 Road Train Member

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    Maintaining a business presence in AZ might be the way to go for you then, it also would help with the AZ weight/distance or other type of taxes if you have a AZ base plate on your truck. You may also find the business income or property taxes to be cheaper, these are things to discuss with a tax adviser, but at least you are thinking ahead, these are all good steps leading to success.
     
    Terry270 and michaelaland Thank this.
  9. Terry270

    Terry270 Road Train Member

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    You will be shooting yourself in the foot staying under 26k. The most I have ever paid in a quarter for IFTA in 3 years in business was still less than what 1 car pays!

    So unless there is some reason you just can't get a class A cdl, its a no brainer
     
    michaelaland Thanks this.
  10. michaelaland

    michaelaland Bobtail Member

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    Terry270, I have the CDL I was just thinking the IFTA, IRP and all that was just a bunch of extra hassle for now while im getting started. So your saying just do it? The small cargo trailers I will be hauling out of Arizona to California will be very light, way under 26k and if I only hauled 2-3 cars to Arizona through central dispatch, you dont think that would work? Like I said, there is a lot of stuff here involved, kind of confusing. I recently found a broker type of person that can do all of this stuff(help me with my USDOT, MC number etc...) for me for a yearly membership fee. It is
    Western Trucking Alliance
    An interstate conference of the California Construction
    Trucking Association – Helping Build the State Since 1941

    What do you guys think of that? Anyone belong to such an organization?
     
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