truckers will face higher IRP fees and could face an increase
every single year from now on because of new rules signed into
law recently by the governor.
General Assembly recently passed the Senate version of a bill
that would increase weight-based IRP fees in the state starting
in 2004. The new law, which started as Senate Bill 1055, will
increase the fees 21 percent in the first year.
if the new law does not bring in as much revenue as the state
expects, then the fees could go up within a year to 34 percent
higher than their current level in 2005. And the law contains
a clause that would increase the fee along with California’s rate
Assembly version of the bill, AB1767, passed the lower chamber
earlier this year, but stalled on the Senate floor. Meanwhile,
the Senate version, which had stalled since late May, was amended
and passed by the Assembly Sept. 10. The Senate agreed with the
amendments and sent it to the governor Sept. 11. He signed it
standard 18-wheelers, the fee, which according to OOIDA’s Business
Services division is now $1,700, would increase initially under
the bill to $2,064. If that did not raise the expected level of
income, it could go as high as $2,271 the next year.
new law states that afterward, “The department [of Motor Vehicles]
would be required to adjust the fees by increasing each fee in
an amount equal to the increase in the California Consumer Price
Index for the current year, as calculated by the Department of
higher fees would be triggered if the state receives less than
who run all their miles in California would pay the entire fee;
those who run part of their miles there would pay based on what
percentage of their total miles they run in California.
Mark H. Reddig, associate editor
Reddig can be reached at email@example.com.