Kendra Hems is the president of the Trucking Association of New York, based in Albany.
New Yorkers thrive on an efficient economy where goods are readily available, shelves are stocked and delivery is near instantaneous. In fact, our dependence on this infrastructure is so absolute — and its reliability so certain — that it often slides into the background of our lives. Consider the trucking industry, which is often overlooked in policy discussions despite its foundational role in this ecosystem: Nearly 90% of communities in New York depend exclusively on trucks to move their goods.
But the hundreds of thousands of New Yorkers who comprise this industry are struggling under high costs imposed by Albany — costs that handicap small businesses that make up the trucking industry — and pose a real threat to Onondaga County’s business community, which is uniquely freight-intensive.
Lifting the burden on the industry will be a complex task, but a reasonable place to start would be for lawmakers in Albany to consider a phase out of the Highway Use Tax (HUT), a tax imposed only on commercial vehicles, and replace it with a more equitable system that will raise more money for New York while reducing burdens on New York’s carriers.
Of course, this may seem like a difficult ask in a state like New York — but the HUT is a unique case that deserves special attention from lawmakers. The Empire State is one of just five states nationwide with a similar tax, which puts us at a massive competitive disadvantage and raises the cost of entry for entrepreneurs interested in logistics.
There is good reason for our isolation: the tax is calculated through a complex combination of the truck mileage tax, highway use permit fees and the fuel use tax. The HUT is complicated to calculate, and a typical motor carrier could be subject to more than 50 different tax rates, making compliance extraordinarily burdensome for both operators and the state.
To make matters worse, it is also…
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