Trucking Industry Operating Taxes State and federal taxes imposed on the trucking industry add to the cost of doing business in the state. Trucks represent approximately 12% of vehicles in Georgia, but pay up to 38% of total highway user fees and taxes. This equates to $826 million in state and federal taxes annually, or slightly more than $2.26 million a day. Of this, 35% ($256 million) is paid directly to the state.
State Diesel Fuel Tax Georgia collects a fuel tax of 12 cents on every gallon of fuel sold in the state. For the average five-axle truck, this totals $2,665 each year. Over $145,179,000 is collected annually, with most of the funds dedicated to highway construction and maintenance.
Annual State Registration and Weight Fees The Georgia Department of Motor Vehicles collects license plate and weight-based registration fees as high as $737 annually on trucks operating in the state. On an average annual basis, the state collects $97,849,000 from truck owners.
Trailer Registration Fees Revenue from trailer registration fees is over $10.2 million a year.
Other State Fees In addition to the taxes and fees collected from truck owners, Georgia also collects an additional $13.2 million annually in other related fees such as permit fees, certificate fees, fines, etc.
THE COST OF TRUCKING IN THE STATE OF GEORGIA:
Total Annual State Taxes: $3,402
Total Annual Federal Taxes: $8,959
$12,361 per vehicle
Total Annual Federal Taxes Each Georgia truck owner pays an estimated $8,959 annually in federal taxes and fees for a typical five-axle tractor-semi-trailer combination, totaling more than $569 million a year.
Federal Heavy Vehicle Use Tax The Heavy Vehicle Use Tax (HVUT), collected by the IRS, is a federal tax imposed on all vehicles with a gross weight of more than 55,000 pounds. Truck owners in Georgia pay up to $550 annually for each truck, for a total of more than $38 million.
Federal Excise Fuel Tax The cost of gasoline and diesel fuel includes a federal excise tax of 18.4 and 24.4 cents per gallon, respectively. For the average five-axle truck, this can total up to $5,092 annually. The federal government collects $438,627,000 in total fuel tax from Georgia truck owners yearly.
Federal Excise Tax on Tractors & Trailers Both new tractor and trailer purchases are subject to a 12% federal excise tax. The revenue is collected by the Georgia Department of Revenue. Georgia truck owners pay more than $74 million in excise taxes on trucks and trailers yearly.
Federal Excise Tax on Tires Federal excise taxes are levied on the sale of commercial motor vehicle tires. On average, truck owners pay $77 per five-axle truck. This equates to more than $18,082,000 collected from Georgia truck owners annually.
Federal Highway Trust Fund All federal trucking industry operating taxes are earmarked for the Federal Highway Trust Fund (HTF). The HTF was designed as a user-supported fund and it’s the primary source of revenue for the interstate highway system and various other federal-aid highway programs. The federal-aid program operates on a reimbursement basis. Georgia is reimbursed only for the federal share of costs it incurs. In 2005, Georgia’s rate of return from the HTF was 90.5%, making it a donor state -- paying more into the fund than it received for highway programs. |
Economic Facts Georgia’s motor carriers are a key link in the state’s supply chain — delivering materials from suppliers to companies and individuals.
Key Industries Georgia’s leading industries – textiles and apparels, transportation equipment, food processing, paper products, chemical products, electronic equipment, and tourism — are all dependent on the trucking industry. Additionally, trucking is the primary mode of transportation for Georgia’s top agricultural products including poultry and eggs, peanuts, cattle, hogs, dairy products, and vegetables.
Size of the Industry More than 43,938 interstate, and several thousand intrastate, motor carriers list Georgia as their base of operation. Utilizing more than 81,000 medium and heavy-duty trucks in their daily operations, these fleets include not only for-hire motor carriers, but utilities, manufacturing, and retail as well.
Safety Facts The trucking industry in Georgia continues to grow in size and roadway use while at the same time improving safety for all motorists.
Roadway Extent and Use In 2004, Georgia had 116,916 miles of public roads. Trucking use of these roads was 13 billion miles in 2004, representing 12% of all roadway traffic in the state.
Safety The Georgia Motor Trucking Association and its member companies are committed to safety, and the numbers certainly reflect this. From 2001 to 2004, the number of truck-involved fatalities decreased by 3%, while the number of vehicle miles driven by trucks increased by 36%.
Trucking and the Environment Since the 1970’s, trucks have reduced emissions by over 80%
Freight Movement No other mode of transportation moves Georgia’s economy like trucking. Over 87.43% of all manufactured freight tonnage in the state is moved by trucks, averaging more than 306 million tons a year. On average, trucks in Georgia move 3.9 million tons of inbound freight and 2 million tons of outbound freight each week.
Total tonnage of freight shipped in Georgia increased by 2.37% from 2002 to 2003; trucking’s share of that increase was 2.43%.
Truck transportation is critical to Georgia’s communities, two-thirds of which depend solely on trucking for delivery of goods and commodities.
Employment The trucking industry keeps Georgia working. The industry was responsible for employing 279,097 individuals in 2004, or 7% of the state’s employment, and growth is expected to continue. There are currently 446,440 drivers holding a Georgia commercial drivers license (CDL), which ranks GA as 9th nationally in terms of the number of CDL holders in each state.
Wages Those who enter the industry are earning wages well above other industries. Annually, the industry pays more than $11 billion in total wages to Georgians. The industry’s average wage, $42,241, is a full 40% higher than the state’s per capita income.
Source: American Transportation Research Instituite, 2006 |
