ATA, OOIDA decry Connecticut’s new vehicle miles traveled truck tax

Trucking news and briefings for Wednesday, June 30, 2021:

ATA and OOIDA Condemn New Connecticut VMT Tax Bill

Starting in 2023, all vehicles weighing more than 26,000 pounds will be required to pay a Connecticut vehicle mileage tax for every mile driven.

The fee will range from 2.5 cents per mile for trucks weighing 26,000 to 28,000 pounds to 17.5 cents per mile for vehicles weighing more than 80,000 pounds.

Beginning January 1, 2023, Connecticut will charge truck owners between 2.5 and 17.5 cents per mile for every mile driven in the state.

As expected, the new law is not popular in the trucking industry. In a comment for Greenwich Time, Chris Spear, President and CEO of the American Trucking Association, said the new law “will have devastating consequences for businesses and families across Connecticut.”

“It doesn’t require a Ph.D. in business to understand that when the cost of trucking goes up, so does the price of the cargo, ”he said. “Everyday consumers and the Connecticut working population will feel the sting of [Gov. Ned] Lamont truck tax on every purchase of groceries, gasoline, prescription drugs, building materials, furnishings, housewares, etc.

Spear added that truck taxes like these are “difficult to enforce and easy to circumvent, rewarding bad actors and punishing the good”.

Similarly, the Owner-Operator Independent Drivers Association has challenged the law.

“We are extremely disappointed with the anti-trucking attitude and determination to search the bank accounts of some of the hardest working people in the world,” said OOIDA President Todd Spencer. “Large trucks – especially out-of-state trucks – are easy targets, and unfortunately the governor and elected officials picked it up.”

The infrastructure required for a fair and accurate implementation of a VMT is likely to be both cumbersome and expensive. ATRI found that replacing the national fuel tax with a VMT tax levied on 272 million personal vehicles could result in collection costs in excess of $ 20 billion a year – about 300 times higher than the federal fuel tax. The hardware cost alone (mostly attributable to providing a GPS-enabled device to motorists) could start at $ 13.6 billion and require ongoing replacement. Telecommunications bills would be about $ 13 billion annually, and account management would be an additional $ 4.3 billion annually, ATRI estimated.

As for a truck-only tax, it might not even be legal depending on how those miles are tracked. A driver’s ELD can only be used to keep track of hours of service compliance, which means the state may need to provide every device it needs from drivers to calculate their VMT.

Cummins acquires 50% of Rush’s Nat Gas technology business

Cummins and Rush Enterprises have signed a letter of intent for Cummins to acquire 50% of the shares in Momentum Fuel Technologies from Rush Enterprises. The terms of the transaction were not disclosed and the proposed transaction is expected to close later this year.

The joint venture will manufacture Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America, combining the strengths of Momentum Fuel Technologies ‘compressed natural gas fuel delivery systems, Cummins’ powertrain expertise, and the engineering and support infrastructure of both companies.

“This collaboration shows Cummins ‘continued commitment to natural gas powertrains,” said Srikanth Padmanabhan, president of Cummins’ engine business. “This partnership will improve customer service for both CNG and RNG through an improved support network. We are very pleased to expand our network of clean and reliable energy solutions. ”

The collaboration also provides aftermarket support through Rush Truck Centers dealers and Cummins dealers who can service both the engine and fuel supply system.

Protect your cargo over an extended holiday weekend

Cargo theft record company CargoNet is warning truck drivers, fleets, and others in the trucking industry of increased cargo theft activity during the July 4th holiday season, which runs from July 1st to July 7th.

To help supply chain professionals develop strategies to contain theft, CargoNet reviewed theft data for the past five years between July 1st and July 7th. A total of 127 thefts were reported during this analysis period, which is an average of 25 per year. The average stolen shipment was worth $ 145,699 per event. Independence Day weekend activity in 2020 was at its highest level since 2016, up 123% year over year.

In previous years, household goods and food and beverages were the most frequently addressed goods. This includes items like home appliances, toys, alcoholic beverages, and seafood. The COVID-19 pandemic has left shortages and price inflation in certain goods, and CargoNet believes that the hardest-hit items, such as computer electronics, will be most at risk this year.

Specifically, the company warns that computer electronics coming from warehouses in California are at particularly high risk, with more than 50 thefts of electronics deliveries recorded in the state since September 2020, and 89% more thefts compared to last year. Additionally, CargoNet warns shippers of full truckloads theft in Ohio, Indiana, Tennessee, North Carolina, and Texas as it alerts to one or more cargo theft groups operating along major highways and monitoring warehouses in those states.

California, Texas, Florida, and Illinois recorded the highest number of thefts during this analysis period. Our analysts believe these states will be most at risk this upcoming holiday again, but supply chain experts should step up security in the Midwest and the Southeastern United States in response to recent theft activity.

Mack receives order for seven LR Electric Trucks from the New York plumbing department.

Mack Trucks announced that the New York City Department of Sanitation (DSNY) plans to purchase seven Mack LR Electric garbage models to be used in each of the city’s seven boroughs.

The New York Department of Sanitation ordered seven Mack LR Electric garbage trucks to accompany the demo it received last year.DSNY received its first all-electric garbage truck, a Mack LR Electric demonstrator, in September 2020 when it began rigorous field testing in Brooklyn. Since then, DSNY has assessed payload capacity, regenerative braking, overall vehicle performance in its demanding missions, range and charging requirements.

“The DSNY order for an additional seven Mack LR Electric Trucks indicates the performance of the current LR Electric demonstrator model collection in Brooklyn meets and exceeds expectations,” said Jonathan Randall, Mack Trucks senior vice president of sales and operations. “Mack has long been the first choice for waste customers and we are now well positioned as the industry leader in e-mobility. The Mack LR Electric is equipped with Mack’s integrated electric powertrain and will help New York City and DSNY achieve their zero emissions goals. “