New York lawmakers have lost sight of this key industry that makes Rochester thrive

Rochester’s festival season is in full swing. Crews are building up and breaking down events, supplies are flowing in, and people are flocking to the Flower City in droves to attend.

The crowds are an economic boom to our city. But, behind the scenes of our vibrant celebrations, there’s a fleet of silent heroes facing an ever-increasing uphill battle to ensure our celebrations are successful: professional truck drivers.

Most people have no idea that approximately 90% of New York communities depend exclusively on trucks to move goods. Without professional drivers and their support staff, significant shortages in food, clean drinking water supplies, medicine, fuel, and other necessities will occur in as little as three days. And, after the COVID19 toilet paper crisis back in 2020, we know that consumer fear and panic would inevitably exacerbate these shortages.

Our regional professional drivers navigate over and across the river, from Lake Ontario to the 19th Ward and everywhere in between, completing complicated checklists with advanced skills to ensure their freight arrives on time and in perfect condition. I know this well, having grown up surrounded by trucking and now owning and operating Leonard’s Express, a nationwide trucking company based in Farmington, New York.

Professional truck drivers and the people operating, maintaining, and dispatching them fuel our economy. Sadly, the public isn’t aware of this industry’s essential role in making things work, day in and day out, and our state lawmakers have lost sight of that, too.

Given our vital role in the economic ecosystem, it’s unsettling that the thousands of New Yorkers employed by the trucking industry are struggling under an outdated state tax. It is far past time to right this wrong and replace the Highway Use Tax with a more efficient taxation system.

The Highway Use Tax, or HUT is only imposed on commercial vehicles and is levied based on a complicated combination of the truck mileage tax, the fuel tax and highway use permit fees. Every time trucking businesses like Leonard’s Express drive on a New York highway, the dollars add up, thanks to this arduous and frankly poorly constructed tax.

Not only are there monetary disadvantages but competitive disadvantages. New York is one of just five states in the nation that impose taxes like this. An average motor carrier could be subject to more than 50 different tax rates under the HUT, which can burden both trucking companies and the state agents responsible for calculating the tax.

Somehow, just a third of all revenue generated from this burdensome tax goes to fund necessary infrastructure improvements that benefit all motorists. This is a clear missed opportunity.

Out-of-state carriers passing through New York are less likely to pay the tax. The collection is self-reported, and the state has limited enforcement tools to hold companies accountable. The most recent data shows a 45% to 53% rate of evasion, resulting in a loss of more than $120 million in revenue to the state, which is largely driven by delinquent out-of-state carriers and at the expense of New York’s own companies.

While the funding the HUT generates is important, there’s a better way to support our state’s economy and the New York professional truck drivers who sustain it. 

Lawmakers should consider alterations in other fees or taxes related to the trucking industry, such as the registration and/or fuel tax, to replace the revenue generated from the HUT. As these taxes apply to all motor carriers, no matter where they live or are based, this would make sure all commercial operators are paying the tax and not just those operating out of New York. It will also guarantee that more resources go toward improving state infrastructure.

Professional truck drivers are New Yorkers too. We have roots here. We are part of the community. At a time when the cost of nearly everything is up — from food to gas to clothing — no one wants to see our families, friends, or neighbors pay even more for the things they need. Yet, the reality is that when the price to produce or deliver goods rises, the cost of those goods goes up, too. Ultimately, it’s small businesses and consumers who bear the brunt of these increases.

Lawmakers have an obligation to support — not systematically undercut — an industry critical to our regional and national supply chains. By replacing the HUT with a more efficient system, we can protect the local truck industry, which plays a vital and irreplaceable role in supporting the economy on which our city thrives.

Ken Johnson is the executive chairman of Leonard’s Express Inc., a nationwide trucking company based in Farmington, New York.