The Owner-Operator Independent Drivers Association won a $44 million class-action lawsuit against New York’s Department of Taxation and Finance.
The lawsuit, begun in 2013, was closed on April 19, 2017, with OOIDA emerging as the clear victor.
Aimed at the $15 fee for registration and $4 decal fee, the lawsuit claimed the fees instated by New York were unconstitutional, particularly for out of state truckers. The taxes, required for both in-state and out-of-state truck drivers, violate the Commerce Clause by causing an unfair tax-per-mile ratio for out-of-state truckers, whose miles are mostly driven in states other than New York.
“We were shocked that New York even thought they could get away with this. The amount for the New York HUT decal is $19, which may seem insignificant, but if other states were to do the same thing, it would be huge – collectively and in administrative costs.” President Jim Johnston said, as recounted by the OOIDA press release.
“We fought against a number of similar taxes back in the 1980s and 1990s and the states lost in every one of those cases [too].”
“If there are other states that think tacking on flat fees to their state truck taxes won’t be noticed as an economic burden to interstate commerce, they need to understand this is not a good idea. We will take them to court in a heartbeat,” said Johnston.
New York is set to pay $44,429,473 for the unconstitutional burden it placed on interstate commerce.