Actually, the heavy use tax is a fee which is assessed annually on heavy vehicles operating on public highways.
Henceforth, the gross taxable weight is determined by:
- Unloaded weight of any trailers or semitrailers fully equipped for service customarily used in combination with the vehicle;
- The actual unloaded weight of the vehicle fully equipped for the service;
- The weight of the maximum load customarily carried on the vehicle and on any trailers or semitrailers used in combination with the vehicle;
Trucking Permits and Licenses Tip No.6: Obtain An International Fuel Tax Agreement IFTA Decal
You can obtain an International Fuel Tax Agreement IFTA Decal, that is to say you are qualifiable if you are operating your qualified motor vehicle in California or any other U.S. State or Canadian province that is a member of the International Fuel Tax Agreement.
The vehicles qualifiable for International Fuel Tax Agreement IFTA Decal should have:
- Three or more axles;
- Two axles and a gross vehicle or registered gross vehicle or more than 26.000 pounds;
- Is used in a combination that has a combined or registered gross vehicle weight of more than 26.000;
Later on, trucking companies that have obtained all trucking permits and licenses, including the Fuel Tax Agreement IFTA Decal can travel to most Canadian provinces as well US States which are IFTA members.
Primarily the IFTA agreement was established with the aim to simplify the reporting of fuel used by Class 8 trucks which are operating across the 48 U.S. States and some Canadian provinces.
By undergoing these steps your company will be allowed to have a single fuel license and will require you to file quarterly fuel use tax returns with the state where your trucking company is based.
Trucking Permits and Licenses Tip No.7: File a BOC-3 Form
The BOC-3 Form can be filed only by a process agent on behalf of the applicant. Trucking company owners should be well aware about this fact.
Moreover, on the files should be only one completed form.
In addition to the form, it should include all states for which the agency designations are required. Also, one copy should be retained by the carrier or broker, it depends.
Later on, the BOC-3 Form can be filed in the following way:
- It should be addressed to the FMCSA;
- One signed copy should be filed with each state in and through which the operation is being processed;
- If there are any new copies, those should be sent only to the states which are being affected by the change or new filing;
- Individual or blanket designations can be made;
Remember: The BOC-3 form is designating a person in each state where the trucking company is operating to act as a legal process agent.
Trucking Permits and Licenses Tip No.8: Get A Standard Carrier Alpha Code SCAC
The Standard Carrier Alpha Code SCAC is actually the recognized transportation company identification code.
This code is being used in the American National Standards Institute- ANSI- Accredited Standards Committee as well as in the United Nations EDIFACT approved electronic data interchange transaction EDI.
Therefore, the SCAC is mandated by the United States Bureau of Customs and Border Protection (for their Automated Commercial Environment, Automated Manifest as well as for the Pre-Arrival Processing PAPS Systems).
Simply said, the SCAC is a privately controlled code used to identify different transportation companies.
Keep in mind that certain groups of SCACs are reserved for specific purposes. For example:
- Codes ending with the letter “U” are reserved for the identification of freight containers;
- Codes ending with the letter “X” are reserved for the identification of privately owned railroad cars;
- Codes ending with the letter “Z” are reserved for the identification of truck chassis and trailers used in intermodal service;
The Standard Carrier Alpha Codes are published by the National Motor Freight Traffic Association in the Directory of Standard Carrier Alpha Codes SCAC.
Tip: You can learn more about SCAC by visiting the National Motor Freight Traffic Association website.
Trucking Permits and Licenses Tip No.9: Intrastate Licensing
Make sure that you contact the intrastate authorities and you get the intrastate licensing for your trucking company.
The reason behind that is that many states in the USA are requiring a separate authority. For example if you want to pick-up and deliver a load within the borders of one state you might face different rules and regulations than the ones that you have in your state.
So if you want to stay compliant with all trucking permits and licenses you will have to get the Intrastate Authority.
Remember: There are different types of authority that trucking companies will need. It all depends from what type of loads the truck is going to transport. So, make an informed decision before you let your truck drivers deliver or pick-up loads from another state.
Trucking Permits and Licenses Tip No.10: Federal Employer Identification Number EIN
In addition, trucking companies should obtain as well the Federal Employer Identification Number EIN. You can apply for EIN even online.
The most preferred method to apply for the EIN is the online application process. It is available in for all entities.
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The EINs are used by employers, sole proprietors, partnerships, non-profit organizations, corporations, certain individuals as well as other business entities.
Trucking Permits and Licenses Tip No.11: Quarterly Fuel Tax Reporting
Quarterly Fuel Tax Reporting is a must. It is including a completion of the IFTA report, altogether with the reports from New Mexico, New York, Oregon and Kentucky.
Every here and then trucking companies thanks to this quarterly fuel tax reporting can allocate the cost on a per truck basis. Believe it or not it is helping trucking companies to gain more profit.
Trucking Permits and Licenses Tip No.12: Overweight permits
Heavy haul permits differ in regards of their validation. That is due to the large loads that oversize/overload trucks are transporting.