Trucking 101 IFTA/IRP 2006 Audit Workshop Bob Pitcher Page - - PDF document
Trucking 101 IFTA/IRP 2006 Audit Workshop Bob Pitcher Page Dunnegan DeAnn Williams Donna Burch Size & Scope (U.S.) $585 Billion gross freight revenue (02) 86.5% of the Nations freight bill 67.8% of US-Canada trade by
$585 Billion gross freight revenue (’02)
86.5% of the Nation’s freight bill 67.8% of US-Canada trade by value (’01)
67.9% of all freight tonnage moved (’02) 2.6 million heavy commercial trucks (’01) 585,677 companies on file with USDOT
92.9% operate 20 or fewer trucks
10.1 million trucking-related jobs (’00)
New Styles of Manufacturing & Retailing New Logistics Demands
Just-in-Time Plus Supply-Chain Management Rolling Warehouses
Economic Regulation & Categories Gone:
Industry Now Must Be Flexible, Agile
Common Carriers Contract Carriers Exempt Carriers Regular-route Carriers Irregular-route Carriers
Private Carriers For-Hire Carriers
LTL TL Movers Package Carriers Other, by equipment, freight, operation
Truck Leasing Companies
“Household Goods Carrier” means a carrier handling: (a) personal effects and property used or to be used in a dwelling; (b) furniture, fixtures, equipment, and the property of stores
establishments, when a part of the stock, equipment, or supply of such stores, offices, museums, institutions, including objects of art, displays and exhibits, which, because of their unusual nature or value, require the specialized handling and equipment usually employed in moving household goods.
Agent Vehicle Either Agent owns vehicle
leases from 3rd party
service representatives, under intermittent leases, the party liable for motor fuel tax shall be: a. The lessee (carrier) when the qualified motor vehicle is being operated under the lessee’s jurisdictional operating authority. b. The lessor (agent, IOO or service representative) when the qualified motor vehicle is being operated under the lessor’s (agent’s) jurisdictional operating
regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes.
HHG Agent
HHG Carrier’s IFTA Return to Carrier’s base jurisdiction HHG Agent’s IFTA Return to agent’s base jurisdiction
IFTA ARTICLES OF AGREEMENT ARTICLE VI. MOTOR VEHICLE IDENTIFICATION
licensee during the calendar year may display IFTA decals for each active licensee concurrently.
HHG CARRIER’S DECAL HHG AGENT’S DECAL
Driver submits paper/electronic trip record to either HHG carrier or agent HHG Agent’s computer system- electronically or manually HHG Carrier’s computer system- electronically or manually HHG Carrier’s reports HHG Agent’s reports
OVER THE ROAD PURCHASES Fuel receipt attached to trip record BULK FUELING AT AGENT’S LOCATION Bulk fueling statement forwarded to HHG carrier by agent CARD LOCK FUELING AT AGENT’S LOCATION Card lock statement forwarded to HHG carrier by agent
State IRP Apportioned Cab Card
USDOT # - HHG CARRIER Registrant – HHG Carrier Lessee/Lessor – HHG Agent (Service Representative)
State IRP Apportioned Cab Card
USDOT # - HHG CARRIER Registrant – HHG Carrier Lessee/Lessor – HHG Agent (Service Representative)
254 SERVICE REPRESENTATIVE
"Service Representative" means a person who furnishes facilities and services, including sales, warehousing, motorized equipment, and drivers under contract or other arrangement to a motor carrier for the transportation of household goods.
273 HOUSEHOLD GOODS CARRIER
“Household Goods Carrier” means a motor carrier handling: (a) personal effects and property used or to be used in a dwelling; or (b) furniture, fixtures, equipment, and the property of stores, offices, museums, institutions, hospitals, or other establishments, when a part of the stock, equipment, or supply of such stores, offices, museums, or institutions, including
value, require the specialized handling and equipment usually employed in moving household goods.
1200 EQUIPMENT LEASED FROM SERVICE REPRESENTATIVES
A household goods carrier using a vehicle leased from a service representative may elect to base the vehicle in the base jurisdiction of the service representative or in that of the carrier.
1204 REGISTRATION IN BASE OF SERVICE REPRESENTATIVE
When under section 1200 a household goods carrier elects to base a vehicle in the base jurisdiction of the service representative, the vehicle shall be registered in the name of the service representative, with the carrier shown as lessee, and the fees for the vehicle shall be apportioned according to the combined records of the service representative and the carrier. Such records must be kept or made available in the base jurisdiction of the service representative. A vehicle registered under this section shall be fully registered for operations under the authority of the service representative as well as that
(Continued)
1206 REGISTRATION IN BASE OF CARRIER
When under section 1200 a household goods carrier elects to base a vehicle in the carrier’s base jurisdiction, the vehicle shall be registered in the carrier’s name, with the service representative shown as lessor, and the fees for the vehicle shall be apportioned according to the combined records of the service representative and the carrier. Such records shall be kept or made available in the base jurisdiction of the carrier. A vehicle registered under this section shall be fully registered for operations under the authority of the service representative as well as that of the carrier.
[The names of both the carrier as lessee and the service representative as lessor must be shown, since the vehicle is
U.S. Department of Transportation, and the service representative's local or intrajurisdictional operating authority pursuant to regulations of a state or province. Intrajurisdictional distance records are to be maintained by the service representative and interjurisdictional distance records are to be maintained by the carrier and furnished to the service representative as may be necessary.]
Many are owner/operators. Many will use a broker
In the Midwest we have many small carriers that will
Fuel and mileage reporting information is taken from
Many of the companies of this size will have
Some will have regionalized vehicles, but the
More of the computerized equipment is used in this
Fuel purchases are made by “Purchase Cards” (P-
Computer, computer, computer is the name of the game for
carriers of this size. Approved computer mileage programs are utilized, as well as computerized fuel pricing/mileage routing
Large carriers usually have two different divisions – linehaul
(over the road) and city operations.
The line haul trucks use a mileage program and base all miles for
reporting purposes on this. Vehicles fuel before leaving terminal and use the “P card” for over the road purchases.
City operations – Vehicles in this group make local deliveries
bulk fuel method. Daily trip reports are turned in at the end of the day and are completed manually. This information is entered into the company’s computer and this information is used for reporting
Truck Rental and Full Service Leasing
Long Term Short Term
Consumer Rental Finance Leasing – Maintenance Support
Tax Advantage Leases Traditional Financing
Long-term Full Service Lease (FSL) as the name implies
provides customers with more than just financing and equipment. A Full Service Lease includes all the administration and maintenance needed to support truck transportation activities. Under a FSL, the LC purchases the equipment to conform to the customer’s specific needs. The customer enjoys the exclusive use of the vehicle under a long-term contract usually for four or more years. The vehicle is painted with the customer’s colors and logo. The LC provides services such as maintenance, safety, licensing, permitting and tax reporting, fuel, insurance, emergency road service and repairs and washing.
Short-term Rental vehicles are available to
One-Way Consumer Rentals are the move-it-
Finance Leased or Maintenance Only vehicles
ARTICLE V R500 LESSORS/LESSEES AND HOUSEHOLD GOODS CARRIERS R510 RENTAL/LEASING .100 Short-Term Leases.
In the case of a short-term motor vehicle rental, by a lessor regularly engaged in the business of leasing, or renting motor vehicles without drivers, for compensation to licensees or other lessees of 29 days or less, the lessor will report and pay the fuel use tax unless the following two conditions are met:
.005 The lessor has a written rental contract which designates the lessee as the party responsible for reporting and paying the fuel use tax; and .010 The lessor has a copy of the lessee’s IFTA fuel tax license which is valid for the term of the rental.
ARTICLE XI REGISTRATION OF RENTAL VEHICLES
persons or firms engaged in the business of renting and/or leasing fleets of vehicles with or without drivers. A "rental fleet" must be designated as such by the "rental owner. "The intention of the IRP drafters in the adoption of this article was to allow, but not require, the
fleet vehicles whether rented or leased. The minutes (Page 6) of the IRP Signatories Meeting held in St. Louis, Missouri, October 15-16, 1983, indicate as follows: The next subject discussed concerned the apportioned registration of rental fleets. In general, all vehicles that are leased by a registrant shall be apportioned in the name of the carrier. However, it was agreed that in the case of vehicles that are part of a rental fleet, such vehicles may be apportioned in the name of the rental company as part of the rental fleet even though such vehicles may be under long-term lease to an individual apportioned carrier.
1111 RENTAL VEHICLE: BASE JURISDICTION
Eliminates special requirements for Leasing
Special article for Rental Passenger Cars
Leasing Companies do not have control over the
Fuel may be purchased by the Lessor or Lessee
Lessor or Lessee Bulk Fuel On Site Wet Fueling Third Party Credit Card Programs Cash Purchases Card-Lock Station Purchases
Mileage Documentation may be in the
Driver Trip Records – Lessor provided forms Driver Trip Records – Lessee provided forms On Board Recording Devices GPS based Systems
Validate individual vehicle MPG against
Check for contiguous travel between
System check for vehicle liability ( intra vs
Automate the capture of Lessor Bulk Fuel Record Imaging