FAQ - TSNA Frequently Asked Questions

The UCR Agreement is found in 49 United States Code (USC) section 14504a (hereinafter referred to as section 14504a or § 14504a).

The UCR Agreement is established by federal law in the UCR Act, which is part of the federal highway reauthorization bill known as the Safe, Accountable, Flexible, Efficient Transportation Equity Act, A Legacy for Users (“SAFETEA-LU”), Public Law 109-59, enacted August 10, 2005. The UCR Act is sections 4301 through 4308 of SAFETEA-LU. In particular, the structure of the UCR Agreement is set forth in section 4305 of the UCR Act, which enacts §14504a as a new section in 49 USC.

The UCR Agreement has been amended under Section 301 of the SAFETEA-LU Technical Corrections Act of 2008, Public Law 110-244, enacted June 6, 2008, and in the Rail Safety Improvement Act of 2008, Public Law 110-432, enacted October 16, 2008.

No. You are not required to carry any proof of compliance in the vehicle. You can carry the receipt for payment of the fees if you choose.

For for-hire motor carriers transporting property or passengers and motor private carriers transporting property, the UCR fees are based only on the total number of commercial motor vehicles operated. The UCR fees for brokers, freight forwarders (those, that is, that do not operate motor vehicles - the UCR fees of those that do are based on fleet size), and leasing companies are levied at the smallest fee category. UCR fees depend not at all on the extent of a carrier’s operations, only on the fact that it is engaged to some extent in interstate commerce. A carrier may, for example, have operations in just a few States, none of which participate in the UCR Agreement. Its UCR fees will be the same as a carrier that operates the same number of commercial motor vehicles but whose operations extend to all participating States. Neither will it matter under the UCR Agreement, which State is acting as a carrier’s Base State - the level of UCR fees for a fleet of a given size will stay the same.

No. UCR fees will be set through a graduated structure of rates according to the number of commercial motor vehicles operated by a motor carrier, or motor private carrier of property, during the preceding year. Changes during the UCR Agreement registration year in the number of vehicles operated will not be reflected until the following year and the carrier will not need to report them currently.

Any motor carrier or other entity that is required to obtain a USDOT, FF, MC or MX number and/or is required to register with FMCSA or should be registered as an interstate or international commerce carrier is subject to the UCR Agreement. Carriers based in Canada and Mexico that operates in the United States is also subject to the UCR Agreement.

Except as noted in Section M below, the UCR Agreement requires all for-hire motor carriers transporting property or passengers and motor private carriers transporting property to register with the United States Department of Transportation (“USDOT”) as well as brokers, freight forwarders, and leasing companies (collectively referred to as UCR registrants) to pay UCR fees.

A registrant is required to register annually for the UCR Agreement and pay UCR fees.

For-hire motor carriers transporting property or passengers, motor private carriers transporting property, freight forwarders, leasing companies, and brokers based in Canada, Mexico, or any other country that operate in interstate or international commerce in the United States, are subject to the UCR Agreement.

The term “freight forwarder” is an individual or company (other than as a pipeline, rail, motor, or water carrier) that receives shipments and combines them for transportation by a pipeline, rail, motor, or water carrier.

The term “broker” is a person, other than a motor carrier or its employee, who acts as agent of the motor carrier for compensation to provide or arrange for motor carrier transportation.

The term ‘leasing company’ means a lessor that is engaged in the business of leasing or renting for compensation motor vehicles without drivers to a motor carrier, motor private carrier, or freight forwarder.

Yes.

If the carrier operates commercial motor vehicles, the answer is yes.

In addition to the other entities listed in this section, there are three types of entities that are not subject to UCR fees:

(1) entities that receive USDOT numbers under the PRISM program as UCR Questions and Answers 17 Revised 5-03-12 “registrants” but have no interstate operating authority;

(2) purely intrastate carriers, that is, those that do not handle interstate freight or make interstate movements, unless the State has elected to apply the provisions of the UCR Agreement to such intrastate carriers, and they are listed as intrastate in MCMIS;

(3) motor private carriers transporting only passengers.

Apportioned vehicles must be registered under IRP.

The Plan defines an apportionable vehicle as: any vehicle that is used or intended for use in two or more member jurisdictions and that is used for the transportation of persons for hire or designed, used, or maintained primarily for the transportation of property, and:

(i) has two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds (11,793.401 kilograms), or

(ii) has three or more axles, regardless of weight, or

(iii) is used in combination, when the gross vehicle weight of such combination exceeds 26,000 pounds (11,793.401 kilograms).

Exceptions: Recreational vehicles, vehicles displaying restricted plates, buses used in the transportation of chartered parties, or government-owned vehicles.

Optional: Trucks or truck tractors, or combinations of vehicles having a gross vehicle weight of 26,000 pounds (11,793.401 kilograms), or less, and buses used in the transportation of chartered parties, may be registered under the Plan at the option of the Registrant.

A fleet means one or more apportionable vehicles designated by a registrant for distance reporting under the Plan.

No, the Plan does not require the apportionment of trailers.

Section 515 of the Plan states "A Trailer, Semi-Trailer, or Auxiliary Axle properly registered in any Jurisdiction shall be granted full and free Reciprocity.”

These changes are accomplished through the submission of appropriate supplemental applications to your base jurisdiction.

Yes. You must file a supplemental application to your base jurisdiction and pay additional fees when the gross weight is to be increased.

An IRP member is a jurisdiction that has been voted into the Plan, pays annual dues and follows the rules and requirements set forth in the Plan. An IRP, Inc. affiliate member is a company or organization that purchased IRP, Inc. affiliate membership.

The 2290 is a form that is filed with the IRS on a yearly basis to report, figure and pay taxes due (if applicable) on vehicles used during the tax year with a taxable gross weight of 55,000 pounds or more..

In many states this is located on the vehicle owner’s registration card. This is the total weight of the vehicle and the load it is capable of hauling. For example, most 18 wheelers have a taxable gross weight of 80,000 pounds which includes the tractor, trailer and load it is capable of carrying.

The tax amount due is calculated based on the weight of the vehicle and the ‘first used month’ during the tax period. There are different weight categories specified by the IRS that range from the letters ‘A through V’ and range from 55,000 pounds to over 75,000 pounds. Please see page 2 of the 2290 form itself for the calculation table.

The tax year for the 2290 is July through June of the next year. For example, the current tax year is July 1, 2011 through June 30, 2012. The next tax year will be July 1, 2012 through June 30, 2013.

The 2290 HVUT return is due on the last day of the month following the first month used within the current tax year.

Example 1: If the vehicle has been on the road since 2009 then the ‘first used month’ for the current tax period would be ‘July 2011’ because this is the first month the vehicle was used within the current tax period. Please note that the due date for the 2011-2012 tax year was November 30, 2011 (this was changed due to legislation within the IRS for this tax year only).

Example 2: During the next tax year if the vehicle has been in service since 2009 the ‘first used month’ would be ‘July 2012’ and the due date is August 31, 2012. This will be in the case of filing for the new tax year of 2012-2013. Filing for the next tax year is not available until July 1, 2012.

Example 3: If the vehicle was originally put into service in April 2012 then the ‘first used month’ will be ‘April 2012’ and the 2290 due date is May 31, 2012.

Example 4: If the vehicle was originally put into service in February 2012 then the ‘first used month’ will be ‘February 2012’ and the 2290 due date is March 31, 2012.

A tax suspended vehicle is one that has a taxable gross weight over 55,000 pounds but is driven less than 5,000 miles per year (or 7,500 miles per year if agricultural). In this case the tax is considered ‘suspended’ and there is no tax ($0) due but the owner must still file a 2290 HVUT return. The due dates for returns filed with tax suspended vehicles are the same as those with taxable vehicles.

The Stamped Schedule 1 is the document that results from filing a 2290 HVUT Return. This document serves as the proof of payment/filing of the tax and is the main piece that clients need in order to obtain their tags/registration and for record keeping purposes. If a client goes into an IRS office to file the 2290 return they will receive this document back with an actual ‘stamp’ on it stating that it is paid and the date in which this was completed. When e-filing the client receives the same document back, however it includes an e-file watermark and received date. Either document/stamp combination is an official IRS document and can be used for all intended purposes.

IFTA is the International Fuel Tax Agreement. This is an agreement between the 48 contiguous US states and 10 Canadian provinces in place to report and maintain fuel taxes.

You will need to file an IFTA fuel tax return if you travel in two or more member jurisdictions and your vehicle weighs more than 26,000 pounds or if the vehicle has three or more axles regardless of the weight.

If you qualify for IFTA but do not choose to register, you must obtain fuel trip permits to travel into or through each member jurisdiction. You will be required to purchase a California Fuel Trip Permit every time you reenter California after traveling outside the state. Carriers traveling in non-IFTA jurisdictions must continue to comply with the fuel tax reporting requirements of those jurisdictions.

A vehicle used or designed to transport people or property is a qualified motor vehicle if it:Has three or more axles; or Has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms; or Is used in a combination that has a combined or registered gross vehicle weight of more than 26,000 pounds or 11,797 kilograms. A recreational vehicle such as a motor home or a pickup with a camper is not considered a qualified motor vehicle when an individual uses it exclusively for personal pleasure. Vehicles used in connection with a business operation are not considered recreational.

Your IFTA return is due the last day of the month following the end of the quarter you’re filing for:

Q1: January - March, due date of April 30
Q2: April - June, due date of July 31
Q3: July - September, due date of August 31
Q4: October - December, due date of January 31

You will need all of your miles driven and fuel purchases by state during the quarter.

Blanket of Coverage for all 50 states. The BOC-3 is a list of Process Agents upon whom court papers may be served if a legal proceeding is brought against you, the Carrier/Broker/Freight Forwarder. They will accept legal papers on your behalf and forward them on to you in a timely manner.

A process agent is a legal representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder. Every motor carrier (of property or passengers) shall make a designation for each State in which it is authorized to operate and for each State traversed during such operations. Brokers are required to list process agents in each state in which they have an office and in which they write contracts. Many commercial firms will arrange process agents in any State for a fee.

Private and Exempt For-Hire motor carriers with vehicles with a GVWR of 10,001 pounds or more must submit:
The Motor Carrier Identification Report (MCS-150)
Authorized For-Hire motor carriers must submit:
The Motor Carrier Identification Report (MCS-150)
Proper application for Motor Carrier Operating Authority, (OP-1 series):
In addition to the OP-1 Application, you must also submit the following to complete the application process before Operating Authority will be granted:
BOC-3 (Process Agents)
Proof of Liability and/or Cargo Insurance
Certain Hazardous Material motor carriers must submit:
The Combined Motor Carrier Identification Report and HM Permit Application (MCS-150B)

Interstate commerce is trade, traffic, or transportation involving the crossing of a State boundary. Either the vehicle, its passengers, or cargo must cross a State boundary, or there must be the intent to cross a State boundary to be considered an interstate carrier. Intrastate commerce is trade, traffic, or transportation within a single State.

If your operations include interstate commerce, you must comply with the applicable Federal safety regulations and Operating Authority rules, in addition to State and local requirements. You must notify the State in which you plan to register your vehicle(s) of your intentions to operate in interstate commerce to ensure that the vehicle is properly registered for purposes of the International Registration Plan (IRP), and International Fuel Tax Agreement (IFTA). The base State will help you by collecting the appropriate fees and distributing a portion of those fees to the other States in which you operate commercial motor vehicles.

If you operate exclusively in intrastate commerce , you must comply with applicable State and local regulations. The only Federal regulations that are applicable to intrastate operations are: the commercial driver's license (CDL) requirement, for drivers operating commercial motor vehicles as defined in 49 CFR 383.5; controlled substances and alcohol testing for all persons required to possess a CDL; and minimum levels of financial responsibility for the intrastate transportation of certain quantities of hazardous materials and substances.

The definition of an "authorized for-hire " carrier is a person or company that provides transportation of cargo or passengers for compensation. If you are a for-hire carrier, in addition to the USDOT Number you will also need to obtain Operating Authority (MC Number).

Common carriers provide for-hire truck transportation to the general public. Common carriers must file liability (BI&PD) insurance but are not required to file cargo insurance.

Contract carriers provide for-hire truck transportation to specific, individual shippers based on contracts. Contract carriers must file liability (BI&PD) insurance but are not required to file cargo insurance.

Both common and contract motor carriers of household goods are required to file liability (BI&PD) insurance and cargo insurance.

Brokers arrange for the transportation of property by authorized motor carriers. Brokers are required to file either a surety bond or trust fund agreement.

Once you have your USDOT Number you will be able to operate as a Private motor carrier. You will not be able to operate as a For-hire motor carrier until you have Operating Authority (an active MC Number)

If you operate any of the following types of commercial motor vehicles in interstate commerce you must comply with the applicable U.S. Department of Transportation (DOT) safety regulations concerning: CDL: controlled substances and alcohol testing for all persons required to possess a CDL: driver qualifications (including medical exams); driving of commercial motor vehicles; parts and accessories necessary for safe operations; hours of service; and inspection, repair and maintenance.

(1) A vehicle with a gross vehicle weight rating or gross combination weight rating (whichever is greater) of 4,537 kg (10,001 lb) or more;

(2) A vehicle designed or used to transport between 9 and 15 passengers (including the driver) for compensation;

(3) A vehicle designed or used to transport 16 or more passengers; or

(4) Any size vehicle used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act (49 U.S.C. 5101 et seq.) and which require the motor vehicle to be placarded under the Hazardous Materials Regulations (49 CFR chapter I, subchapter C)

An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN.