Measuring the rates of weight-mile tax evasion in Oregon

In this report, three methods were selected to estimate WMT evasion rates for 2016-2018: 1) comparison of commercial truck screening data to WMT tax returns, 2) comparison of IRP registration filings to WMT tax returns, and 3) comparison of IFTA filings to WMT tax returns. Comparison of taxable miles calculated using commercial truck screening data to WMT tax returns for motor carriers resulted in average annual WMT evasion estimates ranging from 8.63 percent to 11.33 percent of total revenue collected from 2016 to 2018. Another approach adopted to estimate WMT evasion was comparison of WMT tax returns to 2018 IRP registration records. This estimation method showed potential WMT revenue evasion rates ranging from 8.13 to 10.66 percent. When we compared the mileage reported in WMT returns to trip distances in Oregon as reported in IFTA returns listing Oregon as a travel jurisdiction, the minimum average annual revenue evasion rate was estimated to be 5.09 percent, and the maximum average annual revenue evasion rate was 7.15 percent throughout the study period. Estimation using ODOT screening data offers several advantages: 1) these data are collected by ODOT rather than data self-reported by carriers; 2) they are much easier to match with WMT returns than IRP or IFTA data; 3) they provide information on interstate and intrastate vehicle mileage; 4) they make it easier to determine whether a particular vehicle is subject to the WMT tax compared to IRP or IFTA., by Andrew Martin, Ph.D., Research Scientist, Jeeyen Koo, M.S., Research Associate, Jennifer Walton, P.E., Program Manager, Chris Van Dyke, Ph.D., Research Scientist, Mark Bell, Research Associate, & Jeff Tipton, Research Associate for Oregon Department of Transportation, Research Section., Title from PDF title page (viewed on November 1, 2021)., "OR-RD-22-08"--Technical report documentation page., This archived document is maintained by the State Library of Oregon as part of the Oregon Documents Depository Program. It is for informational purposes and may not be suitable for legal purposes., Includes bibliographical references (pages 125-130)., Sponsored by Oregon Dept. of Transportation, Research Section., Mode of access: Internet from the Oregon Government Publications Collection., Text in English., Final Report.
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This archived document is maintained by the State Library of Oregon as part of the Oregon Documents Depository Program. It is for informational purposes and may not be suitable for legal purposes.
Abstract/Description: In this report, three methods were selected to estimate WMT evasion rates for 2016-2018: 1) comparison of commercial truck screening data to WMT tax returns, 2) comparison of IRP registration filings to WMT tax returns, and 3) comparison of IFTA filings to WMT tax returns. Comparison of taxable miles calculated using commercial truck screening data to WMT tax returns for motor carriers resulted in average annual WMT evasion estimates ranging from 8.63 percent to 11.33 percent of total revenue collected from 2016 to 2018. Another approach adopted to estimate WMT evasion was comparison of WMT tax returns to 2018 IRP registration records. This estimation method showed potential WMT revenue evasion rates ranging from 8.13 to 10.66 percent. When we compared the mileage reported in WMT returns to trip distances in Oregon as reported in IFTA returns listing Oregon as a travel jurisdiction, the minimum average annual revenue evasion rate was estimated to be 5.09 percent, and the maximum average annual revenue evasion rate was 7.15 percent throughout the study period. Estimation using ODOT screening data offers several advantages: 1) these data are collected by ODOT rather than data self-reported by carriers; 2) they are much easier to match with WMT returns than IRP or IFTA data; 3) they provide information on interstate and intrastate vehicle mileage; 4) they make it easier to determine whether a particular vehicle is subject to the WMT tax compared to IRP or IFTA.
Subject(s): n-us-or
Trucks -- Taxation -- Oregon -- Evaluation
Tax evasion -- Oregon -- Evaluation
Trucks -- Taxation -- Oregon
Trucks -- Taxation -- United States
Date Issued: October 2021.