South Dakota House approves IFTA fees

By Keith Goble, Land Line state legislative editor | Monday, January 30, 2012

An effort is underway at the South Dakota statehouse to boost funding for the electronic system used to run the state’s IFTA program.

The House voted 49-17 to advance a bill that would establish a license fee and a renewal fee for motor carriers licensing under the International Fuel Tax Agreement. Fees would also be setup for decals and mailing.

The bill – HB1031 – now moves to the Senate for further consideration. If approved there, it would head to the governor’s desk.

Department of Motor Vehicles Director Debra Hillmer recently told lawmakers the fees are needed to help cover the cost of setting up an electronic filing system for collecting IFTA fees.

Hillmer said the previous program cost the state about $90,000 a year to operate. The expense to keep the new electronic system running is $120,000 annually.

Administrative funds now are used to operate the program.

To help cover the increased costs for the state the bill would require truck drivers to pay $10 to setup an account. Renewals would also cost $10.

Each set of decals would be $1.50, with a $1 fee charged to mail the decals.

The state DMV has never charged an issuance fee. Decals cost 50 cents.

Hillmer told the House Transportation Committee the fees would make registration costs more consistent with what motorists pay when registering their vehicles.

“We think it is a fair and equitable system,” she said during testimony on the bill.

The IFTA fees would also more closely reflect costs in neighboring states.

North Dakota charges $20 for licenses while Iowa and Nebraska charge $10. Decals in neighboring states run between 50 cents and $2.50.

HB1031 is awaiting consideration in the Senate Transportation Committee.

To view other legislative activities of interest for South Dakota, click here.

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