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.