Truckers in trouble: Oregon sues state over excessive taxes while New Jersey raises minimum insurance

Sue against the state of Oregon over excessive taxes and new Legislation for minimum insurance increase in New Jersey.

Legislation for minimum insurance increase in New Jersey

On January 16th, the New Jersey State Legislature enacted a law requiring heavy trucks to maintain liability insurance of at least $1.5 million, doubling the current federal minimum of $750,000. This new legislation applies to commercial vehicles weighing over 26,000 pounds and covers bodily injury, death, and property damage.

The current Federal Motor Carrier Safety Administration (FMCSA) regulation, setting the amount at $75,000, has been in effect since 1985. In a 2022 report, the FMCSA concluded there was no justification for increasing this amount.

It has not yet been specified whether the law will apply only to New Jersey carriers or to all interstate carriers. Potential legal challenges have been warned if interstate carriers passing through or doing business in the state are subject to it. The law has faced strong opposition from commercial groups like the American Trucking Associations and the New Jersey Motor Truck Association.

Tracy Denora, Executive Director of the New Jersey Warehouse and Movers Association, anticipates the new law will likely result in a significant increase in insurance premiums. Representing an increase of $20,000 to $40,000 or more annually, equivalent to 20%, she warned this could lead to higher verdicts and settlements, particularly impacting small carriers.

The Truck Renting and Leasing Association expressed in a letter to Democrat Scutari last month that the FMCSA has set national standards based on studies showing that over 99% of accidents are covered by the $750,000 limit.

Oregon Trucking Association sues state over excessive taxes

Three trucking companies, along with the Oregon Trucking Association, have sued the state of Oregon for imposing state taxes per mile that exceed nearly a million dollars in total.

Filed in the Douglas County Circuit Court, the lawsuit accuses the state of violating the state constitution by imposing a collective payment of $528,000 in additional taxes daily. The lawsuit seeks fair tax payment, as since 2022 they’ve paid over $292,000 in excess according to the state’s Highway Cost Allocation Study.

Trucks in Oregon are paying more than their fair share of road taxes due to inadequate road improvements and maintenance. Despite trucks representing only 15% of miles traveled in the state, trucking companies have been paying over a third of all taxes owed by motorists, violating the state constitution.

The lawsuit seeks a court order to stop unconstitutional taxes and demands an immediate review and adjustment of revenue sources to ensure fair and proportional taxes on motor vehicles. The legislative and state government are accused of failing to rectify excessive taxes.