Trucking: New Comapny, international fuel tax, commercial trucking

Question
QUESTION: I have a furniture company that has grown over the years and I have been making Deliveries in my own Van / 14' trailer.  There is a tax issue when making deliveries in my own truck/van.  The problem with using a regular commercial trucking company is that we offer services such as assembly/repairs.  I like to open my own Commercial delivery service that would be considered a "Commercial Carrier".. And offer our services to other companies (Small deliveries only under bulbs)  I do not own or operate a large Rig.. We just have 2 small Cargo bans and a 14' trailer - We make around 100 Deliveries a year. (PA/NJ/NY/MD/CT/MA)

thank you for your help
ANSWER: Hi Mark.

I tell people this a lot, but contact your state's Department of Transportation.  Tell them of your vans and 14' trailer.  See what they want to do.  You may need a DOT/MC number and IFTA tax stickers.  With equipment that small, I'm unsure.  You can bet that they'll want their road tax, one way or another.  Your state's DOT can guide you in the right direction.  It may be to your benefit to buy temporary 'trip permits' when traveling in other states.  Also, You may find it to your benefit to buy a box truck and many more loads will become available to you.

Good luck!

Bob Stephens

---------- FOLLOW-UP ----------

QUESTION: Thanks -

I'm a Pa company - Do I need to anything about my deliveries in (NJ/NY/MD/CT/MA)

What are Temp trip permts (what are the benifits?) and where do I get them..  I make deliveries in these states around 4-6 months out of the year...

Thanks again

ANSWER: Mark,

Temp. permits are for a single trip in that state for a "For Hire" carrier, which you would be.  If you don't have an IFTA (International Fuel Tax Agreement) sticker, you would need these temp. permits.  You can look into the pricing on both.  You don't run a lot of states, so an IFTA would be overkill.  You may choose (sure, it's a pain) to contact each state's DOT that you run in and get their fuel tax/trip permit.  The benefits are, you won't get a ticket if you are a "For Hire" commercial carrier.  If you haul your own products, non of this will apply with a vehicle that small.

Here is a link of a company that can help you get permits.

http://www.fleetonepermits.com/

There are many companies that can help, so shop around.  Many times, you just call that state's DOT office, or the scalehouse that you'll first see at the state line and they'll help you out.  DON'T cross state lines until you have that permit in your hand OR you've gotten an "OK" from that states DOT.

Good luck!

Bob Stephens

---------- FOLLOW-UP ----------

QUESTION: I cant use a truck from my own company - because then I will be taxable in the states we travel to. I need to start a new Shipping company "ABC" make that a legal commercial trucking company. Then "XYZ" company will contract "ABC" to deliver "XYZ" products.

Can I start a commercial shipping company with only a small Econloine Van?

Is the IFTA expensive - Or just a lot of work (Vs getting permits for each state?)

Basicly I am trying to avoid having to collect sales tax from states where 90% of my orders are shipped UPS or Common carrier - The fact that I make even 1 delivery in NJ with my own truck that makes me 100% taxable for ALL of my shipments to NJ when in fact only 10% of my orders need special care.  

Answer
Mark,

You won't need an IFTA because your not over 26,000 lbs.  Honestly, I don't think you need anything now, because your under 26,000.  I would still check about the DOT # with your state.  I think you'll be fine.

Let me know if you need more help.

Bob Stephens