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May 13, 2022

Weight Distance Tax – Additional Requirements You Must Fulfill With FMCSA Authority

Yes, there is another requirement that you have to fulfill while you are applying for the FMCSA authority and that is the weight distance tax.

The moment you get your FMCSA authority, you may consider a job that takes you to one of the weight distance tax states.

This is when you decide to go to New York, New Mexico, Oregon, or Kentucky. If you want to travel to or across these states, you will have to take care of the following:

New York State 

After obtaining your FMCSA authority, you will be required to pre-register with the state of New York if you want to enter into it with a vehicle that has a weight of more than 18,000 LBS.

The registration fee is $12 per power unit. You must register for the New York Highway Use Tax and you need to keep accurate records of your miles traveled within the state as well.

They will be useful when you file your quarterly weight distance tax reports.

New Mexico

After you have obtained your FMCSA authority and if you want to travel to New Mexico you can either pay at the port of entry or you can register for an account number.

The latter means that you will be paying a quarterly amount which turns out to be very affordable in the long run. This means that you don’t have to pay every time at the port of entry to enter New Mexico.

If you are plated at 80,000 LBS and want to cross onI-40, you will have to pay at least $60 at the port of entry. If you pre-register for a New Mexico account number, this amount is going to come down to only $16.75 for each trip. This amount is the one that you have to pay at the end of each quarter.

Oregon

Oregon is not going to levy any fuel tax on you. Once you have obtained your FMCSA authority, you can register with a $2,000 bond with the state of Oregon.

You can find your monthly weight distance tax report very easily. You can simply pay at the port of entry when you are about to enter Oregon as well once you have received your FMCSA authority.

Kentucky

So you want to enter Kentucky and you already have your FMCSA authority with you. You will have to register for a Kentucky KYU number if you have a plate of 60,000 LBS or more on your vehicle.

You must have your IRP cab card for your KYU registration. Other than this, if you register for a KYU number before you enter and keep an accurate record of your mileage, it is going to make your quarterly weight distance tax filing very easy.

Understanding Personal Injury And Other Financial Assurances

You must have a personal injury or property damage liability insurance cover when you are applying for your FMCSA authority.

  • If the weight of your loaded vehicle or any of the combined apparatuses that are attached to your vehicles such as a power unit or the trailer is 10,000 LBS or less than that, and if you intend to haul any non-hazardous loads on a for-hire basis, and if you want to cross state lines with that load, you must have at least $300,000 worth of personal injury or property damage liability insurance. 
  • When you are applying for your FMCSA authority and if you have a truck with a GVWR of more than 10,000 LBS or if the power unit or the trailer that is combined with your automobile has a CGVWR of more than 10,000 LBS, and you are hauling non-hazardous materials, you must carry at least $750,000 in personal injury or property damage liability insurance.
  • If you have your FMCSA authority and you are hauling hazardous loads regardless of the weight, you must carry at least $1 million worth of liability insurance and this amount can go up to $5 million as well.

Cargo Insurance And Your FMCSA Authority

When applying for your FMCSA authority, you must have at least $5,000 cargo insurance on you. The point is that you must have sufficient cargo insurance that is able to cover the value of your cargo at the time when you are making the application for your FMCSA authority.

Your FMCSA authority or contract authority does not require you to show proof of cargo insurance. If you want to haul products such as gravel, stone, and sand across state lines, you do not need enough cargo insurance coverage.

If you have a contract with your shipper and if he is in a position to provide you with cargo insurance on its loads, you can apply for contract authority. In any other situation when you are applying for your FMCSA authority, you will need common authority along with it.

In the end, you must remember that when you are trying to obtain your FMCSA authority to haul any kind of loads across state lines, you will need intrastate trucking authority as well. If you want to pick up and deliver loads inside or within the home state, this is a requirement you must fulfill.

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