IFTA Suspension/Revocation Terminology. Pamela Marshall KYTC Motor Carriers and Mark Bell Kentucky Transportation Center
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1 IFTA Suspension/Revocation Terminology Pamela Marshall KYTC Motor Carriers and Mark Bell Kentucky Transportation Center
2 R130 PURPOSE It is the purpose of this Agreement to promote and encourage the fullest and most efficient possible use of the highway system by making uniform the administration of motor fuels use taxation laws with respect to motor vehicles operated in multiple member jurisdictions..100 To effect this purpose, the Agreement implements three core provisions that, as between states of the United States, constitute an interstate compact approved by Congress in the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). These core provisions, incorporated by ISTEA, are:
3 R130 PURPOSE.005 The base jurisdiction concept, which allows a licensee to report and to pay motor fuel use taxes to a base jurisdiction for distribution to other member jurisdictions in which the licensee traveled and incurred motor fuel use tax liability..010 Retention of each jurisdiction s sovereign authority to determine tax rates, exemptions and exercise other substantive tax authority.
4 R410 LICENSE CANCELLATION.100 A base jurisdiction may, at the request of a licensee or on its own initiative, cancel a license if the licensee has complied with all applicable provisions of this Agreement, including the satisfaction of all motor fuel use tax obligations for the license period. The base jurisdiction shall instruct its licensees that, upon cancellation, the original IFTA license, all license copies, and all decals shall be destroyed..200 Licenses shall be canceled in accordance with the administrative procedure laws of the base jurisdiction..300 The base jurisdiction shall notify all member jurisdictions quarterly of all canceled accounts.
5 R420 LICENSE SUSPENSION AND REVOCATION.100 Failure to comply with all applicable provisions of this Agreement shall be grounds for suspension or revocation of the license issued under this Agreement..200 Licenses shall be suspended or revoked in accordance with the administrative procedure laws of the base jurisdiction..300 The base jurisdiction shall notify all member jurisdictions within 10 days of all suspensions and revocations
6 Cancellation, Revocation, Suspension R215 Cancellation means the termination of a license by the licensing jurisdiction pursuant to Section R410. R257 Revocation means withdrawal of license and privileges by the licensing jurisdiction. R260 Suspension means temporary removal of privileges granted to the licensee by the licensing jurisdiction.
7 Terminology When two jurisdictions exchange data for their licensees, and are using different definitions for status codes, the results can be detrimental to enforcement.
8 Jurisdictions Submitting Revocations
9 License Revocation Many jurisdictions do not revoke any licenses due to verbiage in their jurisdictional statutes. Likewise, many jurisdictions will only revoke a license after a very lengthy legal process. Instead, they will suspend the licensee, and that suspension may last for years.
10 License Cancellation Some jurisdictions rarely or never suspend/revoke licenses but cancel the license at various times in the year, or wait until the end of the year and cancel the license prior to any renewal. Such action prevents enforcement of the tax violations at roadside or desk side in other jurisdictions.
11 IFTA Clearinghouse Currently, the IFTA Clearinghouse and IFTA Revoked files are for enforcement at roadside. Suspensions are not included because they are theoretically a short-term inactivation of the license and would be handled by the base jurisdiction.
12 License Revocation While these suspensions will forbid operations in the base jurisdiction, all other jurisdictions receive no notification because the record does not show up in the IFTA Revoked file. Long-term suspensions (30-45 days) should be subject to roadside enforcement by other jurisdictions at some point.
13 License Revocation We propose using an IFTA Suspended File for licenses that have been suspended for an extended period of time (30-45 days). This will allow a jurisdiction to act on revoked licenses and long-term suspended licenses.
14 License Revocation This approach will enhance enforcement and unbind jurisdictions currently unable to enforce their own statutes. The new approach would only apply to long-term suspensions, and not to short-term suspensions due to late filings.
15 Cancellation? If the licensee fails to comply with tax filing procedures and the base jurisdiction chooses to cancel (C) the license as opposed to revocation/suspension, other jurisdictions will assume that all filings and payments have been made per the cancellation definition in R215.
16 Discussion What steps should be taken? Need to standardize jurisdictional practices concerning: Revocation Suspension Cancellation
17
18 140.0% Suspended & Revoked as % of Active Licenses, by Jurisdiction 120.0% % Suspended and Revoked/Active 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Jurisdiction (sorted from smallest to largest %)
19 600.0% Canceled as a % of Active Licenses, by Jurisdiction 500.0% % Canceled/Active 400.0% 300.0% 200.0% 100.0% 0.0% Jurisdiction (sorted from smallest to largest %)
20 5-Year Comparison Looked at how the number of suspended/revoked and canceled compare to number of active licenses Range of suspended/revoked as a % of active licenses: % Range of canceled as a % of active licenses: %
21 Feb-09 Jun-09 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Jul Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Number of Suspensions Month/Year IFTA Suspensions ( )
22 KY Motor Carriers Division
23 KY Motor Carriers Division Contact Information: * PamelaL.Marshall@ky.gov * markbell@twc.com
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