As Congress works toward a long-term solution to make the Highway Trust Fund sustainable, a Congressman asked for truckers to be treated fairly.
“Truckers have paid enough into the tax system,” Rep. Mike Collins, R-Ga., said during a House Highways and Transit Subcommittee hearing on Tuesday, April 29.
Collins, who owns a trucking company, relayed some of the taxes that truckers have to pay.
“I just want to take a few minutes and speak from the perspective of a trucker because I’m in the trucking business … The first thing I want to start out with is just a list of taxes we pay in the trucking industry,” Collins said.
“First of all, we pay for IRP tags, which is supposed to be the International Registration Plan for every truck and every tag every year. Then we’ve got (Federal Excise Tax) taxes on new purchases, which is based on the purchase price. When I bought my first truck in the early ’90s that was fully loaded and decked out, it was $81,000. Now, it’s pushing over $200,000 per truck. Trailers are the same way.
“We pay FET tax on every tire we buy – and by the way, there are 18 tires on an 18-wheeler, and we use a lot of them. We pay fuel tax based on fuel mileage in every state across this country no matter whether you buy fuel in that state, and the tax rate is based on the tax rate for that state. We also pay the federal Highway Use Tax, which has gone up over years. We used to pay it based on how many trucks you had over the past year. Now you pay it up front on how many trucks you have today in one lump sum. There is no refund if you wreck or sell the truck … That’s what we have to pay to stay on the road.”
Collins then criticized the government for using taxpayer funds to create bike paths and support electric vehicles rather than investing in traditional infrastructure.
“We had to watch as our taxpayer dollars were spent on something that was unnecessary when we’re out there sitting in congested roads, can’t move … Roads with potholes that need fixed … Bridges that need replaced,” Collins said.
Watch Rep. Collins’ complete remarks
Highway Trust Fund
The Highway Trust Fund, which is the main funding source for highway and bridge projects, generates revenue through fuel taxes.
Rep. David Rouzer, R-N.C., said that Congress must take steps to address shortfalls in the current system. For instance, electric vehicles – despite having heavier batteries – do not contribute to the fund.
“Obviously, gas tax revenue will continue to decline as cars become more fuel efficient,” Rouzer said. “Electric vehicles obviously require no fuel and therefore are not paying into the Highway Trust Fund. (Congressional Budget Office) estimates gas tax revenues, the majority of Trust Fund receipts, will decline by nearly 40 percent over the next decade.”
Rep. Sam Graves, R-Mo., said the House Transportation and Infrastructure Committee will vote Wednesday, April 30 on a measure that would charge electric vehicle users.
“We will vote on a proposal to leverage existing state vehicle registration systems and assess a new fee of $200 on electric vehicles, $100 on hybrid vehicles and a $20 fee on most other passenger vehicles,” Graves said. “If successful, these new user fees would represent the first new funding streams into the Highway Trust Fund in more than 30 years.”
The Owner-Operator Independent Drivers Association said that electric vehicles should contribute.
“America’s truckers are the backbone of our supply chain and make significant contributions to maintaining our roads and bridges by paying several taxes that support the Highway Trust Fund,” OOIDA President Todd Spencer wrote. “However, truckers remain frustrated that electric vehicles currently pay nothing to the Highway Trust Fund despite having equal access to the roads and highways maintained by taxpayers.” LL
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