Kansas and Arkansas have an archiac property tax formula based on the value of your equipment and the number of miles you run in those states. They don't differentiate between "estimated" miles and "actual" miles. I started receiving late notices even though I didn't travel a single mile in either state! When I dropped them from my IRP three years ago, the notices stopped. So if you add them, be ready for those additional taxes.

 

Kansas tried to get me to pay their property tax even though I don't base any equipment out of the state. Several years ago, I had to threaten a lawsuit against them to stop the letters. I see no need why I should pay property tax in my home state and again in another state. All they should be entitled is fuel tax for those miles I run in their state. I just sent them a no miles run in their state this year. I will just start routing around Kansas rather than dealing with the additional paperwork. I don't see how it could be constitutional for them to be able to levy a tax on property not based in their state. I spoke with some large carriers and have been told that they don't pay property tax to Kansas. They may just be targeting smaller carriers and independents in hopes that we will just pay the tax rather than fighting it. New Jersey tries to collect a tax on carriers who either pick up or deliver in that state. In talking to some larger carriers, I heard the same story. They seem to target independents and small carriers. I was told the minimum tax is $500/year. I was informed that it is called a rolling warehouse tax. According to an official at their tax office, if the broker pays the tax the carrier doesn't need to pay it. However, if you do business with a shipper direct, you are responsible for the tax. Frankly, I think it is ridiculous. These states can charge all the tax they want. I just avoid them. If more carriers stopped going to those states, perhaps things would change. About the only way I go to New Jersey is traveling through. And I don't even do that much. The problem all these states have is greed. They refuse to manage their budget. I think there is probably a lot of graft going on in those states. It is like the mafia shaking down local businesses. These states are shaking down small out of state carriers who can least afford to pay these taxes.

 

You should be able to contact the IRP offices in the state you are in and get the information- in Ohio, if you have zero miles, they require you to use their mileage estimates if you want to be apportioned for that state. They use a formula to figure up the price- of course, they can't show you the formula. I think the little green men behind the counter use their dart board...

I did see somewhere an actual IRP formula. If I find it I'll post it- I can't remember if I found it online or if it's on a paper hidden in this huge pile spread about my kitchen table... this could take some digging (literally!).

 

My husband (who is the driver) and I (dispatcher) are debating this issue. Example: pickup a load in VA going to OH but must pass thru PA and MD but PA and MD are not on IRP. Can he travel thru (no pickup or delivery) without having to register those states. Thanks

 

Do you mean they are not on your irp?
If that's what you mean,yes you must get a trip permit(usually 72 hrs.) or have them added to your registration.

 

I agree with Mike.....if you're burning fuel while in that state, you need a cab card or a trip permit.