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The sooner, the better: Court says states must send Oklahoma truck tag money

Some of the money states have been withholding from Oklahoma over the truck tag brouhaha will begin flowing back to the Sooner State.

The federal District Court in Oklahoma City issued an order April 30 granting Oklahoma part of the preliminary relief the state requested in the case between the International Registration Plan Inc. and the Oklahoma State Tax Commission.

IRP is an agreement among states and certain Canadian provinces that allows proportional registration of commercial vehicles, with that registration being recognized in all of the jurisdictions. Vehicles are registered on the principle of apportioned registration, which is a means of registering vehicles concurrently for more than one jurisdiction, based on the laden weight and miles traveled within each jurisdiction.

The litigation grew out of Oklahoma’s administration of its IRP program, which allowed to out-of-state truckers to base plate in Oklahoma. In 2002, IRP’s Dispute Resolution Committee (DRC) found Oklahoma’s practices non-compliant and, in the fall, ordered Oklahoma to change its ways.

Oklahoma was also ordered to settle a dispute with one state that claimed it suffered as a result of Oklahoma’s past non-compliance. Illinois is complaining it lost at least $15.5 million in fees. It claims it was cheated because the Oklahoma Tax Commission (OTC) lured truckers from their home states and allowed them to pay cheaper fees based on bogus mileage projections.

Earlier this year, OTC spokeswoman Paula Ross said the state had taken the appropriate steps to meet compliance. At a meeting April 10, the dispute committee reviewed Oklahoma’s compliance efforts and lifted the sanction, but left in place the sanction on the Illinois issue.

In December, when The Daily Oklahoman reported the OTC had gone to the courts for relief, the newspaper reported that the loss of truck tag fees or potential large judgments against Oklahoma would devastate the state, which the newspaper said was already experiencing teacher and employee layoffs because of budget shortfalls.

At last week’s order of the court, IRP Inc. has directed its jurisdictions to resume sending funds to Oklahoma that are due on and after April 29, 2003.

Meanwhile, the IRP has told each jurisdiction, except Illinois, to report the amount of funds each has withheld from Oklahoma prior to April 29 and currently suspended under the IRP’s sanction imposed Jan. 1, 2003. The IRP and Oklahoma have been ordered by the court to submit briefs by June 10 regarding the disposition of the funds in suspense. The court also wants a new report on the dispute between Oklahoma and Illinois.

--by Sandi Soendker, managing editor

Sandi Soendker can be reached at ooida@aol.com.

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