Any one else get a bill for escrow account money for Oregon permit?

It was 500.00 years ago. Didn't need it if you were buying permits,only if you were getting annual registration. Costs 8.00 per year/per unit.

 

Not too sure where i said that.

 

No,No, You didnt actually Say it...Id just had the impression that it was 'Standard' operation in your eyes,Thats all.

So,i Guess my question is....Is the $4,000 for a Fleet of Trucks? How about just 1 truck that goes there maybe only 2-3 times a year?

Maybe Im Missing something here because I Just dont See $4,000 per Truck

 

lol Sort Of I Guess.........

Thanks Stan

 

Isn't it easier to just register all of them and then pay quarterly? Even with the reefers(the ones with spreads)it only costs 8.00/year to run 86K. The open decks are all licensed @ 92K.(86K divisible/92K non-divisible)The RGN @ 116K. Just load and go. Lot easier than buying OW permits.

 

I think I agree with Kansas Transit, in that this is at best an advance payment or withholding scam. They get away with it because the IRS has been doing so for decades, and they can hold your Oregon business hostage if you disagree. You are presumed to be a deadbeat before having a chance to be late on the first penny due.

I can only imagine other states have not done this as they recognize that it would tend to reduce the number of competing motor carriers serving their state, resulting in less tax revenue and higher transport costs for their consumers. The residents of Oregon probably do like their Cali neighbors and proudly think about how their state is sticking it to the evil, polluting trucking companies, while smugly buying their merchandise at a price artificially inflated because of it and none the wiser.

It would be fascinating to see a study of what would happen to west coast transport rates, along with the costs of products and services inflated by them, if stuff like this OR Bond and/or CARB were to vanish tomorrow.

This OR cash deposit thing seemed a little mysterious to me (my cab cards end two states away from OR), so curiosity got the best of me and I looked it up. Following is a copy/paste out of the OR registration and tax manual. Of course what's written and reality probably differ a little, since a lot of "public servants" don't read so well and usually look to the law as a suggestion.

For my two trucks, if I decided I wanted to run in OR, I'd either have to post $2,375 bond (per the rate table at the end), or apply for a waiver if I had a D&B rating >3A2. If I did post cash bond, I could apply to have it waived/returned after at least one year of good behavior, timely filings and payments.

In the case I could not qualify or get a waiver, I'd carry that cash bond as an asset on my books. Once the bond was waived/returned, that would liquidate the asset back to cash.

So I'd be tying up $2,375 cash for at least a year, before (assuming no faults) that gets refunded with interest (probably less than 1% in line with a passbook savings account) and it turns into a regular w/d tax like NM or KY. Just presumably higher because it includes what the other states add on with IFTA, either collecting at the pumps in their states or via distribution when I file. Unless you screw up and miss a due date or something, then the bond requirement gets reinstated.

If I had compelling business that required an OR route, I'd just get over my dislike of this and sign up. Of course passing through the cost in my rates. Since it's a deposit and not an outright fee, I'd probably treat it like I do operating in PA where I have a few hundred dollars sitting on an EZpass account. Anything going to or thru there would get boosted at least 25¢ a mile, if I didn't use the toll road. The toll road there costs about 50¢/mi so I add that too if I run it. Customers would either pay my quoted price (I don't break that out by the way) or not, and I would either run it profitably or not run it. For what it's worth, we do haul many loads to PA, so I'm not out of line with my quotes.

Interesting side note: the fee for the OR intrastate carrier authority application is $300. I did not look to see if there were further requirements to register a foreign corp and pay more fees to the OR SOS.
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Bond Requirements
When a carrier obtains permanent weight-mile tax credentials, Oregon state law requires
that the carrier file a Highway Use Tax Bond with MCTD as a guarantee of payment of
fees and taxes. MCTD will send notification of the bond requirement giving instructions
for posting the bond. The bond may be in the form of:
 Money (cash deposit),
 Savings Assignment, or
 Surety Bond.
Surety Bonds – The Surety bond is the most common type of bond, and can be
obtained from most insurance companies. When a cash deposit is posted with the
agency, interest will be paid. The full amount of the bond must be deposited in order
to avoid suspension. MCTD may waive the deposit required of a new carrier with a
Dun & Bradstreet rating of 3A2 or higher, or of an established carrier when the
scheduled annual review by MCTD finds that in the previous 12 months that the motor
carrier has been required to file weight-mile tax reports and has had:
 No suspensions with MCTD;
 No revocation of IFTA tax license;
 No weight-mile tax reports filed late;
 Fees timely paid;
 No more than two estimated weight-mile tax reports filed;
 No more than one estimated weight-mile tax report filed without an actual report
filed within a 30-day period;
 No non-sufficient fund checks or returned Automated Clearing House (ACH)
transactions; and
 No outstanding billings for over-dimensional variance permits.

Bond Adjustments – A carrier may not qualify for a waiver of the Bond or Bond Deposit, if within the previous 36 months, the carrier has had a weight-mile tax audit, resulting in an assessment exceeds by more than 15% of the amount of the weight-mile taxes and fees reported and paid during the audit period or has an outstanding balance with the Department’s Collection Unit for fees owed.
When a motor carrier no longer meets the above criteria, the bond requirement may be increased, or a previously waived bond may be required.


Bonds for a New Carrier – For a new motor carrier who is hauling For- Hire and has not previously had an established account with MCTD, the security deposit schedule is as follows:
ﰀ One vehicle – $2,000;
ﰀ Plus $375 for each additional vehicle from 2-5 vehicles;
ﰀ Plus $250 for each additional vehicle from 6-10 vehicles;
ﰀ Plus $125 for each additional vehicle above 10 vehicles;
ﰀ Maximum deposit required – $10,000.
Different requirements exist for private carriers, farmers, and vehicles using gasoline for which Oregon state fuel tax is paid. For more information about bond requirements, contact the Bond Unit at 503-378-4823.

 

Buying trip permits cost more than registering the trucks and paying quarterly. You need an Oregon account(either good credit or post bond) then it costs 8.00 per vehicle(don't have to do all of them)and then pay the ton/mile each quarter. It's not the same as having them on your IRP.