After the Owner-Operator Independent Drivers Association emerged victorious in a class action suit, the New York Department of Taxation and Finance has agreed to pay out over $44 million to truckers affected by a highway use tax deemed unconstitutional.
The complaint was initially filed by OOIDA in the New York State Supreme Court in 2013. The lawsuit challenged New York’s use of highway taxes on out of state truck drivers. From OOIDA: “The class action lawsuit challenged the constitutionality of taxes that impose $15 for a certificate of registration and a $4 decal charge on all trucks using New York state highways. The taxes are imposed not only on New York-based trucks, which are driven proportionately higher miles in New York, but also on trucks based outside of New York, which are driven mostly in states other than New York.”
The court sided with OOIDA in early 2016, ruling that the taxes cost out of state truck drivers more per mile, therefore violating the Federal Commerce Clause, which restricts states from passing laws that put an undue burden on interstate commerce.
It wasn’t until April 19, 2017 that the class action suit was wrapped up. The New York State Supreme Court ordered the Department of Taxation and Finance to pay out $44,429,473 to the class action members. The court ordered the Department of Taxation and Finance to begin distributing checks to class action members within 120 days. Class action members should receive their checks within 90 days after the checks are mailed.
You can take a look at the class action suit in the document below.
[su_document url=”https://www.ooida.com/CourtActions/NYHwyUseTax/doc20140422094846.pdf” width=”700″]Trucker’s Letter To Paul Ryan In Washington[/su_document]