BTW, it's not so much about the size of the carrier, that I look for, but the experience of the carrier. Recent start ups, those with less then a few years, are more likey to get caught up by things they don't know.
A number of years back I leased to Keystone Lines, and they had been in business less than a year. However, they were the "Special Commodites" division of Trans Con Lines, so the experience and expertise were there, in the background.
States That Require Out Of State Carriers To File Returns/Reports?
Discussion in 'Ask An Owner Operator' started by rsconsulting, Jun 25, 2012.
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IL wants a foreign registration also. They sent us a letter in 1999,nominal charge each year. Of course we do a lot between WI/IL. I don't think they have any actual enforcement of it,just safer for us to register.
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I don't understand the AR deal, what do they need this special tax for? just for passing through their state? does it matter that we don't own or title any vehicles in their state? or are we talking about IRP/IFTA here? could someone clarify this please
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so does OH, IA and PA. IA taught me this with a $400 ticket
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You have to look at two things - specific laws target motor carriers/CMV and corporate registration. It is my understanding that NJ is enforcing foreign corporation fees and has nothing specific to do with trucking. Just Trucking is an easy target. As far as I am aware most states have these laws in place they are just ignored by most people (not just trucking) unless they have a physical presence in that state.
KS is a tax (that is going away in 2014 - hmmm, my tiny start-up carrier knew about this. How could that be?) on CMV - not the carrier - and it is the responsibility of the owner of the vehicle to pay this. First time I ever saw this was when I paid it.
This is correct. Just passing through requires paying the tax on the vehicle that passes through.
Rick, only a few around here take cheap shots. We can all see right through that. Not taken that way at all. It is a good example. NJ is a very real concern for any business. And it is a well known issue. KS and AR are less known and equally ignored by big and small carriers.
And why I don't take it as a cheap shot is because I don't think a lot of O/O's think like business people. As a business person you should question the fact that I am a new carrier. Have me explain why I believe my compensation plan is fair to my O/O's? Am I financially stable. Do my crazy ideas of disrupting the status quo have a chance of succeeding?
And in the same respect a business owner needs to question others statements made as facts. Could they be missing changes that are happening today because they are stuck on experienced gained in the past. They maybe 100% correct. Experience can be a persons most valuable assets or their biggest anchor. But you need to be the person asking the questions to determine if that experience has relevance to your operation and to todays business environment.
Last thought and I will get off my soap box.
Do you think Apple would have the products they have today if Steve Jobs allowed a computer veteran to shoot down a crazy idea with the justification of "I have been doing this for 20 years and let me tell you how it is done"? No, he fired (it only had to happen twice) people that didn't look to innovate. How many people will spend all their time and energy telling you how CSA is going to kill our industry? And how many are looking for ways to profit from it? Fire the first group and hire the second.rsconsulting and rollin coal Thank this. -
Because all of us not based in AR do not vote in AR. Few in AR are going to protest this tax. So it is an easy tax to get implemented.
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A number of states have requirements for "intrastate" (load/drop in the same state) - these are pretty well documented in other threads here.
The thing I just became aware of myself (and still find it kind of SHOCKING) - is that asset-type declarations or even documents considered to be "tax returns" that get "assessments" - occur in a number of states - some it seems, strictly "corporate" (like NJ apparently) and some specifically targeted at Motor Carrier (both good & passengers) - even if no vehicles or offices are registered or domiciled in that state.
Which is kinda why I started this thread - to see if we could compile a list (at least for the folks that are trying to decide whether to go O/O with their own MC, versus leasing onto a carrier), so that folks could become educated on these requirements that aren't discussed (and well documented) as frequently as IRP/IFTA and the "more commonly known weight/mileage states".
If I decide to go my own MC - I want to go into it with as many "ducks in a row" (QUACK QUACK) as possible, so I'm using my time, "pre-jump-off-decision-date" to do as much due diligence as possible on the regulatory/taxation issues involved.
In doing a business plan of fixed/variable costs - some of this "extra taxation burden" has to be figured in also.
Rick
But the issue is (and was brought up in that HR from the '09 congress that I read), one of state's interference in Interstate Commerce. Another "blessing" of de-regulation". -
What I don't understand is for example the Kansas form of taxing you....Isn't this taxation without representation? But the small guy can't take on the states like that, I have wondered why the ATA hasn't taken these states to task for this, every one has a hand washing a hand it seems.
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You don't have to do business in any state. You want to drive through KS, you pay their tax. Just like every fuel tax by state is different, you have that choice.
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But if you drive through on an interstate highway, shouldn't you be exempt since it's a federal easement?
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