Intrastate permits

They started on the gross sales that picked up in the state. They are always going to go for a higher amount.

 

RC remind me never ever to sit near you at a truck stop counter LOL. You really know how to get them going.

A lot of mis-information posted in this thread that could get you fined or impounded. Even the stuff copied/pasted from other sources. Either out of date, inaccurate, or just wrong.

The only advice that's right is: look it up yourself, based on your operation and what you intend to do. OOIDA used to be a good source, until they started selling the service. In my opinion, making them less credible for information you aren't willing to pay extra for.

Google is your friend. The phrase "motor carrier" and the state name is a good start. You really can't even depend on word of mouth from someone that already has the authority you are seeking. The requirements or app process may have changed, they might have a different business form than you, and so on. I can honestly say that every time I have had a question about intrastate authority somewhere, that the government workers manning the phones have been very helpful and informative every time. Don't be afraid to ask the source.

Also a lot of confusion between intrastate authority and state taxes. Relationships or dependencies may exist between the two, but they are unique issues in and of themselves. Here's two examples.

In MO, there is no charge for intrastate authority. Just fill out the application and send. However, you do need to have your insurance company post a certificate with them. And your insurance company must be on the Mo Insurance Commission's approved list of companies. Additionally, if you are incorporated you must register with the Mo Secretary of State as a foreign corp, along with any d.b.a as a fictitious name. That part isn't free and can put you on their radar for additional tax grab opportunities. In my own case, so far so good with the "show me" state. Jeff City has generally been a pleasure to deal with when I've had a question.

In NJ, the revenue officers sitting at terminals punching DOT numbers into their laptops are tax collectors, not motor carrier enforcement. If you are a corporation, and have paid the $500/yr tax, it doesn't give you any intrastate authority. So you're running that load from Newark to Trenton, taxes all paid thinking you're all good, and get popped for a roadside. You know they will ask to see your bills, and you'll probably be there a while without NJ authority.

 

LOL, been there done that.

 

Just checking to see if there is any new information or clarity you have found out, or ran into any issues? I've been digging around to weigh the cons of electing as a Common Carrier and ran across this issue. Since I know I will be doing a certain amount of intrastate in PA, I will also have to register and permit with PUC (I'm pretty sure they will steal (tax) 1% of intrastate proceeds).

Since intrastate loads can and will pop up in neighboring states, I'm still a little confused as to if I would need to register my corp (LLC) with every state that I may do intrastate with in the future or if ignorance is truly bliss? I already know about NJ, and have decided that I will never set foot in that state again (ok, I can't say never, but I need $25 a mile to even consider it). Filing corporate returns in PA was bad enough, I can't imagine having to register and jump through hoops for other states as well.

 

Nothing has really changed in the last two years. You are correct, to do intrastate in Pennsylvania you will need PA PUC authority, easy to get while you are getting your Federal authority. PA PUC will conduct a new entrant audit, same as the US DOT, and if you are applying for both at or near the same time they can combine your US DOT and PA PUC audits. I have had that done for several of my clients.

NJ will want a corporate proceeds tax paid if your LLC has a tax structure like a corp, if it is a disregarded entity (sole prop based) then they will not collect the tax. New York has intrastate authority although I have never seen them enforce it, ran almost 20 years in NY without an issue. The UCR was supposed to fix all this, the main reason for intrastate authority was to verify insurance and safety status.

To be completely legal, I would investigate each state you think you may do intrastate work in, and apply for authority in the states that require it. PA is a big one, they have a PUC enforcement division that sets up in the scale houses and does road patrols, so it is most likely you would get caught in PA if you tried to do intrastate without displaying a valid PUC number, Ohio is another one that is tight on enforcement.

 

Wasn't sure about displaying the PUC # after reading:

"Marking of Vehicles As a PUC certificated carrier, you are required to mark your vehicles with the name or registered insignia of the carrier and the PUC‐A#. The vehicle must be marked in letters no less than 2 inches high by ½ inch in width. Vehicles operated in limousine service and vehicles registered under the UCRA that are marked with a US DOT number are exempt from this requirement."

I'll have to take a look at what's actually on the sides of some company trucks, but it's not like the lettering is a hang up.

The more I dig, the more insane the thought of being a one man independent o/o looks. As much as I don't like to pay for services, if I go down this road, I may have to, at the least, hire a CPA. Requirements individually aren't too bad, like IFTA, but combine that with filing corporate returns in 12 states, staying on top of intrastate permits, IRP, UCR, ad valorem, weight distance, etc. It really makes my existing small business look like a walk in the park.

 

What state are you going to be based out of? If you are not PA based then you can use the UCR registration, if you are PA based then you need a distinct PA PUC number and it must be displayed.

 

Technically, I cannot take an intrastate freight without a permit even in my own state. I once asked about OH and TX....seems like an accounting headache. I don't know how much they enforce the permits, but I don't want to try it on myself.

 

Both OH and TX are known to do enforcement. I had one load checked in TX. I never needed intrastate in OH, but TX is easy. Online and a one time payment, post an insurance certificate and you're good as fast as your insurance company gets it done.