Highway Use Tax Recordkeeping Requirements

Tax rates shown in this presentation are effective as of December 2009, and are for illustration only. Check rate schedules at the following link for the most current tax rates. The purpose of this presentation is to help you understand record-keeping requirements for Oregon Highway Use Tax and to provide examples of how you can meet those requirements. Links will be provided for additional IRP and IFTA records requirements. As we move through the presentation we’ll answer these questions and others. Use the navigation buttons at the bottom of the screen to play, pause or rewind. Move your mouse over each button for assistance. Links to additional information will be underlined and are provided throughout the video. A list of all links is provided at the end. Clicking on the link will open another window. Close the window when you’re ready to return to the video. First, why do you need to keep records? Oregon law requires that you keep certain records to track your operations. Also, you need to have complete and accurate information when it’s time to file your mileage report All carriers need to keep records even if you operate only on temporary passes Now, what records do you need to keep? Use this link to see a complete list of requirements for highway use tax reporting. Here’s a checklist of the elements. We’ll talk about all of these requirements. How will you collect and record all of this information? Many carriers maintain logbooks and while they can be a good source of some information they don’t include all of the information you are required to keep A long-form log, or a combination of a trip envelope and a short form log will provide more information. If you use log books for part of your information for tax reporting, you’ll need to keep your log books longer than the six months required by the Federal Motor Carrier Safety Administration. An ODOT Trip Record provides for all required information Whatever forms you use, they must be filled out correctly and consistently Include all requirements and support what you report to ODOT for each of your vehicles. Okay let’s look at how to record information for a trip from Portland, Oregon to Yakima, Washington Your driver is using a trip envelope that looks something like this: He fills in the beginning date, the origin and destination of the trip, and the beginning odometer reading before the trip begins. In the office, you may have used mileage software to route the trip and estimate the mileage. Notice that the software routes the first leg of the trip directly from the middle of Portland out at U 97 on the way to Yakima, and calculates 105 Oregon miles However, your drivers actual route is more complicated. He starts from his home in southeast Portland, fuels at a truck stop in north Portland, and stops at the terminal in Northwest Portland – all before getting on Interstate 5 and heading south, then east on Interstate 84, and exiting into Washington on US 97. He records the first part of the trip, including the Oregon highways used. His exit point from Oregon is highway 97. He noted his odometer reading when he crossed into Washington, and records it as his ending Oregon odometer reading. He calculates the actual mileage, and we find that he traveled 127 miles in Oregon, 22 miles more than the software estimated. Mileage software is just a tool, and depending on how that tool is used, may not always reflect the actual operations of your vehicle. Oregon requires you to report actual miles on your tax report, and to record daily beginning and ending readings from an odometer or other mileage recording device. If your odometer breaks get it fixed right away and continue to account for all operations on your trip records Here are links to view additional information on record-keeping if you operate interstate, in more than one configuration, or over-and-under 80,000 pounds in one configuration. Or, you may click the forward button to skip these options and continue the presentation. If you choose to view one of these links, you will be returned to this screen when finished. You may then select another option. When you file your tax report you must show each vehicle’s monthly beginning and ending odometer readings The ending odometer reading from your driver’s last trip sheet from December should be the beginning odometer reading

for his first trip in January – and the beginning odometer reading on your January 2010 tax report. Your driver made several trips in January and kept records for each trip. You will enter the ending odometer reading for this vehicle on your January 2010 report, and calculate the total miles traveled. You will add the miles traveled by the vehicle in Oregon using all of your drivers trip records from January You will enter them on your report as Oregon taxable miles. When your driver completes this and other information on his trip record, it provides you with the information you need to fill out your tax report completely and accurately. If you operate in Oregon on temporary passes and trip permits, record all of the required information we’ve talked about on your trip records, and pay for all the miles you travel in Oregon during the 10-day period that your temporary pass is valid. If you have more miles or weight than you expected and paint for on your temporary pass, contact ODOT to pay for the additional miles or weight. Keep copies of your temporary passes and trip permits with your trip records. There are some operations where recording the commodity you’re hauling is important. For example, whether you haul logs, sand and gravel, or chips on a flat monthly-fee basis, or if you have farm vehicles with some taxable operations – you need to keep track of what each vehicle is hauling on every trip. Here are links to view detailed information on record-keeping. If you have private road or off-road operations and some of your operations are exempt, or you have flat-fee operations, or farm operations or heavy haul operations, or you may click the forward button to skip these options and continue the presentation. If you choose to view one of these links you will be returned to this screen when finished. You may then select another option Some carriers use various electronic tracking devices. Keep in mind that regardless of what you use to record your operations, all elements are still required. Records kept by electronic devices must be provided in printed format upon request. If you pay Oregon Fuel Tax at the pump, keep your receipts to submit with your tax report in order to receive credit. Receipt requirements are strict as explained at this link. If you have operations outside of Oregon keep your fuel receipts for filing your IFTA tax returns. How long do you need to keep your records. Records you use to support the information in your tax reports need to be kept for three years from the date your report is filed Retention requirements for IRP and IFTA records are longer. Your records should be stored at your principal office or place of business. If you use a third-party such as an agent or a reporting service to prepare and/or file your reports, you are still responsible for the accuracy of reports and availability of records when requested Who will be looking at your records? Oregon law requires the department to review a motor carrier’s account periodically. If you are contacted by an auditor, you must provide your records upon request. Will you be ready? You’ve provided a way for your drivers to record all of the required information; you’ve made sure they’ve followed through to provide you with accurate information; you’ve used the recorded information to calculate the tax due on your reports; you’ve kept all of those records. You should have everything you need to support the mileage you’ve reported and paid for. Good records are your best support in an audit. We hope we’ve answered your record-keeping questions. If you have a type of operation not covered by this presentation, please contact us with your questions. Motor Carrier staff are available to help with questions on tax reports or declared weights, as well as record-keeping requirements. And as always, you can find a wealth of information on our website, including information on record-keeping Let’s continue the interstate trip your driver made from Portland, Oregon to Yakima, Washington. Your driver’s destination is Denver, Colorado. The truck

loads in Yakima, where the driver is issued a bill of lading which is retained with his trip records. As he crosses back into Oregon, he notes the odometer reading – and again when he exits into Idaho. He then calculates the mileage for each state. Note that out-of-state miles are exempt from Oregon Highway Use Tax. Your driver records the same type of information for the rest of his trip to Colorado Why record this information for operations outside of Oregon? Although out-of-state operations are exempt from Oregon Highway Use Tax, the exempt mileage must be documented You also need this information when you apply for apportioned registration and when you file your IFTA tax returns Here’s an example of a trip from Los Angeles to Seattle where your vehicle operates in different combinations with a different declared weight for each configuration. Your driver starts in Los Angeles with doubles, enters Oregon on Interstate 5, and travels to Medford She records the information we’ve already discussed. In addition, she records her vehicle configuration: doubles. She records the number of axles and the weight in Oregon because you will need that information when you file your tax report She has also recorded beginning and ending odometer readings for each leg of the trip, so that the mileage in each configuration can be calculated at the correct weight. Mileage in other jurisdictions, California for example, is exempt from Oregon Highway Use Tax, but exempt miles must still be documented and are also required for IRP and IFTA In Medford she picks up a third trailer to deliver in Portland. Note that she will need an oversize-overweight permit for operations over 80,000 pounds. Again, she records the number of axles and the weight of the vehicle combination. She drops the triples in Portland, than bobtails to Clackamas. She records the number of axles and bobtail as her configuration. In Clackamas she picks up one trailer, then exits Oregon on Interstate 205 in-route to Seattle Your driver records the number of axles with the single trailer for her miles in Oregon She has also kept all of her bills of lading. You have all of the information you need for calculating the mileage for this vehicle, for this trip, and reporting it at the correct tax rates. After you file your report, keep these records to support your tax reporting. One of your vehicles operates at loaded weights both over and under 80,000 pounds in one configuration. An oversize, overweight permit is required for operations over 80,000 pounds. On this trip, your driver starts out with a loaded weight of 990,900 pounds in Portland. She delivers the load in Albany, and returns empty. She records the number of axles, her loaded weight, and the empty return. She keeps the weight slip with the trip records to confirm the weight. She has recorded required information for each leg of the trip The next day your driver picks up in Portland, and the vehicle’s loaded weight is 104,000 pounds. She delivers part of the load in Salem, and her loaded weight is now under 80,000 pounds. She drops the remainder of the load in Albany and returns to Portland empty Again, she needs to keep her weight tickets for you to back up what you enter on your tax report. Tax rates for operations over 80,000 and under 80,000 pounds are on two separate tax tables, Table A and Table B. In this case, operations over 80,000 pounds including empty return miles are reported at the declared weight of 105,500 pounds. Operations at or below 80,000 pounds, including empty return miles, are reported at the 80,000 pound declared weight. You can find instructions for calculating and reporting these operations at this link Your driver has kept complete records Using her records, you’ll be able to file

an accurate tax report, and you’ll be able to back up the information you report. Now let’s look at some intrastate operations with exempt mileage Your driver begins his day with the trip from Grants Pass to a gravel pit in Cave Junction, and returned to Grants Pass Here’s how he records the first trip he makes to this site. He records the beginning and ending odometer readings from Grants Pass to the pit; beginning and ending odometer readings for his off-road mileage; and again from the pit back to Grants Pass. He calculates the mileage of each leg and enters it. If he makes trips to this site in the future, he can use these mileage figures Your driver makes three trips from Grants Pass to a Murphy pit, and back to Grants Pass The off-road mileage at the pit is exempt. Last year when he made this trip for the first time, he recorded the beginning and ending odometer readings for the exempt portion of the trip. As long as the exempt route hasn’t changed, he records only the beginning and ending odometer reading for the day, and enters the number of trips he makes that day – calculating total miles, exempt miles, and taxable miles. If you’ve elected flat fee reporting for an eligible commodity, you’ll file a flat fee report each month for hauling those commodities. However, if the vehicle hauls a commodity that is not eligible for flat fees, for example a piece of machinery, mileage tax must be paid for those operations on a monthly mileage report that you file in addition to the flat fee report for that month Your driver must record both the mileage and the commodity so that you can file the correct reports and to support the accuracy of your reporting. For additional information about flat fee reporting, use this link Here’s an example of a farm operation with taxable and exempt miles. Farm operations exempt from mileage tax, pay fuel tax instead. Use these links for more information about farm operations and fuel tax liability. Carriers hauling non-divisible loads over 98,000 pounds must obtain an oversize, overweight single trip permit from the Over-dimension Permit Unit. These loads should be clearly accounted for in your records and include: loaded miles, loaded weight, permit number, and empty miles Fees for heavy-haul loads over 98,000 pounds are paid in advance on the oversize, overweight single trip permit, or reported after the trip to the Over-dimension Permit Unit on road use assessment fee RUAF mileage report forms. If the empty weight is more than 98,000 pounds, you will need a separate oversize, overweight single trip permit for the empty return. Do not pay RUAF miles on your monthly mileage tax report. However, if the empty weight of the configuration following a heavy haul load is 80,000 pounds or less, report the empty miles on the Monthly Mileage Tax Report at 80,000 pounds. If you change configuration when empty, report empty miles at the declared weight for the configuration. For example, report a bobtail tractor-only return at your declared solo weight If the empty weight is more than 80,000 pounds but less than 98,000 pounds report empty miles at the table be wait you have declared for the empty configuration. Be sure to keep accurate trip records of these operations and save copies of your oversize, overweight single trip permits