May 21, 2008
New Mexico Agrees to TRALA Proposal for Plate-Based Tax Checks
WASHINGTON
– Lessors and their customers are applauding New Mexico’s new policy of using license
plate numbers to conduct tax compliance queries at Ports of Entry (POE) into
the state. The new policy was announced in a May 9 directive to all of the
state’s Motor Transportation Division (MTD) personnel.
The directive stated that “effective immediately” it was the
policy of the MTD that all queries of the Taxation and Revenue Department’s “E-permitting”
system must be conducted using a vehicle’s license plate number instead of the
U.S. DOT number displayed on the truck cab. TRALA had requested this policy
change earlier this year.
Prior to this change in policy, New Mexico MTD personnel
would use the motor carrier DOT number displayed on the truck cab to check for
compliance with the state’s weight-distance tax. This posed a significant
problem for carriers operating leased vehicles when the lessor was responsible
for tax compliance. Regardless of which entity is responsible for tax
compliance, Federal law requires that a carrier operating a vehicle under a
lease agreement of more than 30 days must display its DOT number on the truck
cab. As a result, many leased vehicles suffered long delays at POEs in order to
prove tax compliance, according to TRALA.
Some drivers were required to
purchase trip permits even though the lessor had already paid the
weight-distance tax. Using the license plate number for such compliance checks
will eliminate the problem.