An attempt by the IRP to fix an inequity in base plates and fees has turned into a war between the states where truckers and trucking companies are the only real casualties.

Established place of business rules

The International Registration Plan (IRP), which governs the multistate reciprocity system, has adopted a final rule covering established place of business for motor carriers.

The rule will take effect Oct. 1, 2003.

The new language calls for an established place of business to be "open during normal business hours" and to have a permanent employee of the carrier conducting trucking-related business. No post office boxes will do.

The IRP says the new rule, however, will not affect owner-operators. As it has in the past, the Plan requires owner-operators simply have a "physical address" in the state.

Sgt. Tim Adams, Kentucky Transportation Cabinet, is the chairman of the IRP's Dispute Resolution Committee. Adams says owner-operators must prove their base by either their CDL number or place where their income tax is filed. He says the Plan makes owner-operators exempt from the new rules because the group understands "it's not feasible" for one-man one-truck operations to be open during business hours and to have someone answering the phone.

The change will determine a carrier's choice of his or her IRP base state after that time, likely creating problems for smaller carriers.

The new language in IRP will apply in all states and provinces. The changes were made in the wake of recent turmoil in Oklahoma over basing rules.

Oklahoma in trouble with IRP, again

The IRP has decided that Oklahoma is still not following the new registration rules. The IRP has told Oklahoma that if the state can't prove compliance, other states and provinces will stop sending fees Feb. 7, an amount that could exceed $1 million a month.

Back in April, the IRP's Dispute Resolution Committee ruled that Oklahoma cheated Illinois out of trucker fees by looking the other way when agents hired by truckers filed false mileage projections to get their clients cheaper tags. The two states were given until November to try to reach a settlement. According to the IRP, Oklahoma failed to reach an agreement with Illinois by that date.

Also, at the Nov. 7 meeting of the Dispute Resolution Committee, Oklahoma was ordered to develop a new estimated distance chart using actual miles. The new chart needs to be in effect within 90 days of Nov. 7, 2002.

The DRC repealed its April 16, 2002, motion and determined that with the failure of Oklahoma to reach an agreement with Illinois, the jurisdictions are ordered to suspend transmittal of fees. The state of Illinois is seeking $15.5 million in lost revenue.

Oklahoma also must come up with a plan by Feb. 7 that outlines how the state will deal will owner-operators using service agents in Oklahoma. Oklahoma must also provide evidence that they have implemented the owner-operator requirement and report monthly thereafter until the state is determined to be in compliance.

Illinois isn't the only state complaining about fiscal losses to the Sooner state. A number of financially strapped states are unhappy over losing money to Oklahoma. They're particularly peeved over Oklahoma's bogus mileages and the scandal within the Oklahoma Tax Commission. Already, reports have come in that some states are citing Oklahoma base-plated trucks, calling them illegally tagged. Alabama is reportedly ticketing trucks that officials there think are improperly registered in Oklahoma.

Sgt. Adams says the IRP has no authority in this area, but the Plan encourages states to recognize Oklahoma registrants during the 90-day period as long as Oklahoma continues to pay those states money.

Base plating in the state where your operational records are may be the answer, but going home may not be that easy. Arkansas is requiring all Oklahoma-licensed vehicles returning to Arkansas for IRP plates to pay back property tax before plates can be issued. About 90 percent of Arkansas-based trucks are estimated to be registered outside the state.

Lawmaker introduces bill to help Arkansas truckers

If successful, a brand-new bill proposed in the Arkansas General Assembly may grant a seven-year amnesty to homebound truckers who would otherwise have to pay back taxes, penalties and interest for base-plating out of state.

On Nov. 25, state Rep. Don House (D-Walnut Ridge) proposed legislation that would cap the sales tax at $1,000 for a truck and $500 for a trailer. The bill is co-sponsored by Johnnie Bolin (D-Crossett). The two lawmakers call the bill a compromise that will help hundreds of Arkansas truckers come home.

House discussed his bill Monday in an ad hoc subcommittee meeting of the House and Senate Committees on Public Transportation. He hopes to introduce it in a special or regular legislative session. The Arkansas General Assembly's regular session convenes Jan. 13.

Lane Kidd, executive director of the Arkansas Trucking Association, told legislators Monday that the bill would give relief to hundreds of small-business owners, although he did not know how many trucking-company owners from his state were registered in Oklahoma.

In September, Kidd said a trucking company owner could register a truck and trailer in Arkansas and pay $6,380 in sales tax, or they could register in a state like Oklahoma and pay a $51 charge for excise tax, title and lien fees. Kidd says he is advising Arkansas truckers to leave the state instead of paying back sales tax or being forced to go out of business by Dec. 31.

Officials at the state's Department of Finance and Administration said it was illegal to go to Oklahoma in the first place, citing a law that says if you are a resident of Arkansas, you must register in Arkansas. Rep. House says he will consult the attorney general on this.

House plans to propose his bill to the full Committee for Public Transportation this week and file a final draft after Thanksgiving.

-- By Sandi Soendker, Managing Editor