Independant O/O IRP renewal question on 2nd yr estimates

I didn't read all the post but thought I could explain how 2nd year estimates work for an IRP application. All jurisdictions with actual miles in the mileage-reporting period are totaled to equal 100%. Each jurisdiction's miles are divided by the total to arrive at each jurisdictional percentage. That jurisdictional percentage is multiplied by the full plate fee for that state. All of those fees are added together for the plate fee before estimates. To get the second year estimates fees for each jurisdictions with no actual miles, the estimated miles from the jurisdictional mileage chart are totaled and added to the actual total miles to arrive at a total. The estimated miles are then divided by that total to arrive that the estimated jurisdictional miles percentage which is then multiplied by the full jurisdictional plate fee. The fees from the estimated miles will be over the original 100%. The idea is that the jurisdictions with actual miles deserve a full percentage of the plate fee with possible jurisdictions getting their money outside of the actual.

Example: I didn't take the time look up the actual plate fees and MI estimate but it will give you an idea of the setup
Indiana Actual Miles 30,000 75% x $1600 plate fee = $1200
Illinois Actual Miles- 10,000 25% x $2400 plate fee = $ 600
Total Actual------- 40,000 100%------------------- $1800 What the plate would cost without estimates
Michigan Estimated 10,000 20% X $1500 plate fee= $ 300
Total --------------50,000 120%--------------------$2100 Fee with estimates paying 120%

I used to work for Indiana which would determine the estimated mileage charts from the reported average number of miles traveled in each jurisdiction from a previous period divided by the number of registered vehicle. The estimated miles on the chart where times the number of trucks. Certain states had very high estimates such as IL, OH, PA. The farther you moved away from Indiana the lower the estimate, usually. If your truck had a low number of actual miles, the estimated miles would be considerable. A driver could easily double his plate fees. Indiana had a very good system for adding jurisdictions so we usually advised people to only add what they knew they would be using. I don't know how easy it is to add in other jurisdictions or how high their estimated miles are.

 

That actually tracks with what I'm seeing on my renewal that's due this month. First plates were all estimated miles for 48 states and were about $1600 each. First renewal came two months later, but I dropped to 26 states in my region. Although still all estimated miles since we had only operated for a short period. Renewals were about the same, maybe a small amount less. This year I have 30 states, including four distant ones with estimated but the rest actual. Plates will be about $1150 each this time around.

 

I ran into the same issue in MN. I was told by the irp office to use my actual mileage for states I had driven in, and the estimates for the states I hadn't. My plates were roughly the same as the year I used only estimates.

 

My actual miles were high in MN and WI. Very low in MI, IL, and IA. And estimates for about 7 other states. It seemed to all work out just fine.

 

In our case, the four estimated states are small values being remote for us in GA (IA, SD, MN, and NE). Only a few hundred miles each against 200k fleet miles actual on two trucks. Our actual miles are on the low side for two OTR trucks, a combination of repair downtimes and running for profit not miles.

Although what the auditor posts suggests that my lower cost is due to listing and having the majority of miles in states with cheaper base rates. Largely from excluding NY and beyond, along with that big heel shaped state along the west coast.