OOIDA sues states over fuel taxes

GRAIN VALLEY, Mo. (Feb. 25) — A U.S.-based owner-operator association has filed class action suits against four state governments, seeking refunds of fuel taxes collected for miles driven on the states’ toll roads.

The Owner-Operators Independent Drivers Association, which represents 40,000 members in the U.S. and Canada, said the imposition of fuel tax based upon the number of miles driven on toll roads is double taxation and therefore unconstitutional.

The suits were brought against Illinois, Indiana, Ohio, and New York.

OOIDA president Jim Johnston said government documents show that revenue collected by the toll road authorities in each state is sufficient to pay for the cost of the highway. He said that states cannot tax users of toll roads a second time through a fuel-use tax.

The Commerce Clause in the U.S. Constitution “does not permit states to impose taxes or fees that exceed that which is reasonable and appropriate for the services provided,” Johnston said.

“Our success in these lawsuits is especially critical to all truckers now,” he said referring to a decision by Congress last year which gives states new authority to collect tolls on existing interstate highways.

OOIDA is asking the courts for a permanent injunction against states collecting fuel taxes on toll road miles. OOIDA is also asking that refunds of illegally collected fuel taxes be made going back four years.

Also named as a defendant in each of these suits is the International Fuel Tax Association Inc. (IFTA), a non-profit group formed under the auspices of the National Governors Association to coordinate the collection of fuel use taxes by individual states.

OOIDA is not seeking damages from IFTA, but claims that IFTA’s assistance will be needed in order to coordinate the payment of tax refunds by the defendant.

Ohio turnpike director G. Alan Plain said he has made similar arguments to state lawmakers and the turnpike¹s legislative oversight commission for the three years he has managed the toll road.

“To me, it¹s a matter of equity and we should be fair in what we do,” Plain told the Columbus Dispatch. “They shouldn¹t have to pay the additional cost, since we pay for the road¹s maintenance.”

Plain says the turnpike receives 5 cents of the 22-cents-per-gallon state tax for all fuel purchased at service plazas on the turnpike. The rest goes into the state¹s general highway fund.

Plain says he will watch the court action as an interested observer. The turnpike is not involved in the suit, which was filed against the Ohio Dept. of Transportation and the Dept. of Taxation.