Truckers group urges tax suspension

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Owner-Operator Independent Drivers Association (OOIDA) officials are urging Congress to suspend the Heavy Vehicle Use Tax (HVUT) for one year as a means of providing economic relief to small-business truckers.

“Truckers are still on the front lines, filling store shelves and supplying hospitals,” Todd Spencer, president of OOIDA, said. “Suspending the HVUT is a way that Congress could easily offer fast, direct relief to all motor carriers. And believe me, they need it, much more than just a ‘thank you.’”

The organization said it is seeking the modification in conjunction with the next COVID-19 response package.

The HVUT is an annual fee that typically costs about $550 per truck, per officials. Compared to the federal excise tax (FET), the HVUT is a more immediate and equitable way to provide assistance since suspending the FET would only benefit motor carriers in a position to purchase new equipment.

“Congress and the American public have heaped praise on truckers for their work on the front lines of this crisis,” Spencer said. “This action would provide tangible, meaningful help to carriers of all sizes, not just those large enough to have the resources to afford new equipment in the midst of an historic economic downturn.”

OOIDA forwarded correspondence to lawmakers expressing concerns regarding the manner in which the economic downturn has lowered freight rates, officials said, and created uncertainty for those within the trucking industry.