The New York Supreme Court has ruled that certain highway fees on out-of-state truckers are unconstitutional and discriminatory.
The New York Supreme Court last month ordered the state to stop collecting certain highway fees on out-of-state trucking companies, saying they were unconstitutional and discriminatory.
The Owner-Operator Independent Drivers Association, which filed a class action lawsuit against the Department of Taxation and Finance in 2013, says it is asking for refunds and other relief for the plaintiffs. Total damages could exceed $20 million, the truck driver advocacy group said.
The suit challenged whether New York had the right to impose a $15 fee for a certificate of registration and a $4 decal charge on all trucks using New York state highways. OOIDA argued that the fees constituted an undue burden on interstate commerce in violation of the Commerce Clause. It said it was unfair to tax trucks based outside of New York because they are mostly driven in other states and therefore paid a much higher per mile tax rate than in-state trucks.
The state said a flat tax was necessary for administrative reasons and cost, but the court rejected that argument, noting that each carrier is already required to report annual mileage traveled in New York and that the government could easily apportion the amount each carrier owes for the highway use tax based on miles traveled.
OOIDA rolls back N.Y. highway fee on truckers
