Out-of-state truckers see refund for New York decal tax

The Owner-Operator Independent Drivers Association has reached an agreement with the State of New York to refund a registration and decal tax in the amount of $44.4 million to trucking companies.    The Owner-Operator Independent Drivers Association (OOIDA) said it has reached an agreement with the State of New York to refund a registration and decal tax in the amount of $44.4 million to trucking companies.
   OOIDA in January showed in the state’s Supreme Court that the taxes imposed by New York’s Department of Taxation and Finance violated the U.S. Constitution’s Commerce Clause.
   The association said the tax discriminated against out-of-state truckers who drive their trucks mostly in other states in contrast with New York-based truckers who spend most of their time operating in New York.
   “We fought against a number of similar taxes back in the 1980s and 1990s and the states lost in every one of those cases,” said OOIDA President Jim Johnston in a statement. “Given that history, we were shocked that New York even thought they could get away with this blatantly unconstitutional tax. The amount for the New York HUT decal is $19, which may seem insignificant, but if other states were to do the same thing, it would be huge – collectively and in administrative costs.”
   New York did not appeal the court’s rulings, and voluntarily agreed to negotiate with OOIDA in developing a class-wide refund program.
   Under the program, affected truckers will receive a complete tax refund, plus interest, subject to attorneys’ fees, based upon the state’s reapportionment of the taxes in conformity with constitutional criteria, OOIDA said.