Why Large Motor Carrier Fleets May Change Their IRP Bases

1
Why Large Motor CarrierFleets May Change
Their IRP Bases

• Bob Pitcher
• Vice President, State Laws
• ATA

2
A Controversial Issue

• Basing is governed by IRP 210
• Base jurisdiction means, for purposes of fleet
  registration, the jurisdiction where the
  registrant has an established place of business,
  where distance is accrued by the fleet and where
  operational records are maintained or can be made
  available.
• not substantially changed in the Rewrite

3
Controversy, contd.

• Original drafters debated
• established vs. principal
• Came down on side of carrier flexibility

4
So Why Move??

• Level of Registration Fees?
• NOT under IRP
• Sales or Property Taxes?
• NO large fleets are already in exempt
• jurisdictions
• Moving a Large Fleet is Expensive

5
Why Move??

• CUSTOMER SERVICE
• INCIDENTAL JURISDICTIONAL FEES REQUIREMENTS

6
A Little Cost Can Make A Big Difference

• Trucking is a low-margin business
• Motor carrier revenue/mile declined from
  1980 to 2003 by 38 (adjusted for inflation)
• Average carrier profit, 1993-2002 1.9
• Per truck, thats 3400/year or 0.03/mile

7
Increasing Costs

• 2004-05 very good years for business, but
• Industry will pay 85B more for fuel this year
  and probably next
• Were short 11,000 drivers counting
• Trucks started to cost 20,000 more in 2004 it
  will happen again 2007 2010
• Pressure from competitors and customers never
  lets up

8
Incentives

• Jurisdictions fight over other industries with
  tax incentives but not trucking
• Successful fleets have learned to be as efficient
  as possible
• No shame in going where its easiest and most
  efficient to do business

9
Customer Service

• POSITIVES
• Can-Do attitude
• Accessibility of expert assistance
• Fleets assigned specific agency reps
• One-stop shops
• Electronic application/processing/payment
• Support of management

10
Customer Service

• NEGATIVES
• Waiting in line
• Limits on time or transactions
• Dealing at local levels
• Delays in paperwork
• Poorly trained, unhelpful staff

11
Requirements

• POSITIVES
• Electronic titles
• Self-issuance of (all) credentials
• Reciprocity for equipment inspections
• Permanent plates
• Single plate required on tractor
• Carrier-specific plates

12
Requirements

• NEGATIVES
• Expensive title transaction fees
• VIN inspection requirements
• Environmental requirements
• Dolly registration
• Lien fees and paperwork

13
Requirements

• NEGATIVES, contd
• Annual stickers for plates
• Special licenses required of carrier personnel
• Proliferating jurisdiction fees

14
Why Move?

• No advantages in registration fees or major taxes
• No advantage in going to a place that doesnt
  want you
• Benefits come in increased customer service
  effiencies

15
Efficiency Can Make A Big DifferenceTo
Everybody

• TRUCKING ACCOUNTS
• FOR 5 OF GDP