If you operate a commercial truck that travels across state lines, you’ve probably come across the terms Weight-Distance Taxes or Highway Use Taxes. These are charges based on the miles you drive, and they apply mostly to heavy commercial vehicles that put more wear on public roads. The revenue from these taxes goes back into maintaining highways and bridges - so they’re an important part of keeping our infrastructure safe and strong.
Some states require truck drivers to pay these fees separately, outside of the standard fuel tax agreements like IFTA. Specifically, these states are New Mexico, Oregon, Connecticut, Kentucky, and New York. If you travel through any of them, you’ll need to make sure you have the correct permits and tax accounts set up. Let’s go over each one so you know what to do.
New Mexico Highway Use Tax
New Mexico requires commercial carriers to pay a highway use tax based on the weight of the truck and the miles traveled in the state. Every commercial vehicle with a declared gross weight of 26,001 pounds or more must have a New Mexico Weight Distance Permit (WDT) before operating there.
If you’re new to this process, the weight distance permit is your license to travel. Rates are calculated per mile according to your truck’s weight class, so the heavier the truck, the more you pay per mile. In 2023, there weren’t major rate changes, but it’s always a good idea to check for updates with the New Mexico Taxation and Revenue Department before filing.
To obtain a weight distance permit, you’ll need to register your business with the state and set up an account. You can do this online through the state’s Motor Vehicle Division or by mail. Once registered, you’ll file reports and pay tax on a regular basis - typically quarterly - for all miles driven.
Oregon Weight Distance Permit
Oregon is unique because it doesn’t participate in IFTA. Instead, it requires carriers to pay a weight-mile tax on commercial vehicles weighing over 26,000 pounds. If you’re just passing through Oregon and don’t have a permanent account, you can use a weight-mile temporary tax pass.
That pass comes with a $9 administrative fee, and then you’ll pay tax based on the number of miles you plan to drive. A pass is valid for 10 days or until you use up the mileage you purchased - whichever comes first. Oregon lets you buy up to five passes per vehicle, or up to 35 per account in a 12-month period.
If you plan to do more regular business in Oregon, it’s better to set up a weight-mile tax account with the Oregon Department of Transportation. To do that, register with the Motor Carrier Transportation Division (MCTD), declare your weight class, and obtain a tax account. Once your account is set up, you’ll file mileage reports monthly and pay the tax due. Even if you don’t drive any miles in a given period, you must file a report to stay compliant.
Connecticut Weight Distance Tax
Connecticut recently introduced its weight distance tax, often referred to as the CT weight distance tax. The CT weight-distance tax applies to commercial trucks with a gross weight of 26,000 pounds and up. The rate per mile varies by weight class - heavier vehicles pay a higher rate per mile.
Before you can drive in Connecticut, you must register with the Connecticut Department of Revenue Services (DRS) and obtain a tax account. Once registered, you’ll file tax returns periodically and pay based on the miles driven in the state. Keeping accurate records is critical because Connecticut requires you to file returns on time to avoid penalties. It’s a new tax as of 2023, so make sure you stay up to date with any regulation changes.
Kentucky Weight Distance Tax
In Kentucky if your truck has a gross weight over 60,000 pounds and travels in Kentucky, you’ll need a KYU number. The tax rate is set per mile traveled in the state and applies to both interstate and intrastate carriers.
To register, you’ll need to apply for a KYU account with the Kentucky Transportation Cabinet. Once you have a KYU number, you must file tax reports quarterly. Even if you don’t have any miles traveled for a particular period, you still have to file a return. Kentucky is strict on recordkeeping, so make sure to log all trips carefully. Missing a filing deadline can lead to fines, penalties, and even a suspension of your KYU account.
NY Highway Use Tax
New York’s Highway Use Tax (HUT) is one of the most well-known mileage taxes. Every commercial vehicle with a gross weight of more than 18,000 pounds must display a valid NY HUT sticker and pay tax on mileage traveled on public highways.
Before driving in New York, you’ll need to register for a HUT account with the New York State Department of Taxation and Finance. Once registered, you’ll receive HUT decals for your trucks and file quarterly tax returns. Rates vary by weight class and whether you use unloaded or loaded weight as the basis for tax calculations.
New York is also very strict on compliance. Failing to register or file returns on time can lead to substantial penalties - not to mention your account could be revoked. Be sure to keep good records and submit all required reports every quarter.
How Can We Help?
Navigating weight-distance taxes and obtaining the right permits can feel confusing but you don’t have to do it alone. At IRP Registration Service, we specialize in simplifying compliance for carriers. Whether you need help with IRP or IFTA filings or state-specific weight-distance taxes like those in Oregon, New Mexico, Connecticut, Kentucky, and New York, our experienced team is here to help.
Simply call us at (888) 202-4927 and let us handle the paperwork so you can focus on the road ahead!