State Mileage Permits: Essential Compliance Guide for Motor Carriers

Several U.S. jurisdictions assess a weight-mile tax or highway use tax on motor vehicles. State mileage permit credentials are required by these states for motor carriers operating vehicles above specific weight thresholds. The permits authorize carriers to travel within a state and ensure that carriers pay taxes based on the miles driven in that jurisdiction. Unlike fuel permits (such as those under the International Fuel Tax Agreement, IFTA), mileage permits are separate and often require additional reporting and payment.

With the increase in electric and hybrid vehicles, more states are looking into ways to make up for the decrease in fuel tax revenue. Carriers need to keep up with changes, since these state taxes are in addition to – and separate from – fuel taxes under the International Fuel Tax Agreement (IFTA).

Why do they matter?

Mileage permits are crucial for:

• Compliance: Operating without the required permits can result in fines, penalties, or even being barred from operating in a state.
• Revenue: States use these taxes to fund highway maintenance, especially as fuel tax revenues decline due to electric and hybrid vehicles.
• Operational efficiency: Staying compliant avoids costly disruptions and helps carriers maintain good standing with state authorities.

Which states require mileage permits?

Currently, several states require mileage or highway use permits.

Connecticut highway use tax

In Connecticut, the new highway use tax (HUT) began in January of this year (2023). It applies to eligible motor vehicles weighing 26,000 pounds or more. The HUT accrues based on a vehicle’s weight and the number of miles driven in the state. Per-mile tax rates increase based on vehicle gross weight, ranging from 2.5 to 17.5 cents per mile.

Carriers must obtain HUT permits, and then file returns and remit the tax monthly to the Department of Revenue Services.

Kentucky weight-distance tax

The Kentucky weight-distance tax is known as the KYU number. This program applies to all vehicles 60,000 lbs. or more.

Carriers subject to the tax must obtain a KYU license and provide a list of vehicles subject to the weight-distance tax. Quarterly reports must be filed on or before the last day of the month following the close of the quarter (even if no tax is due).

The KYU reports are separate from the IFTA returns.

New Mexico weight-distance tax

The New Mexico weight-distance tax applies to all vehicles 26,001 lbs. or more.

All carriers operating on New Mexico highways must register and report and pay weight-distance tax quarterly or pay the trip tax each time they enter or exit the state.

An IFTA license and decals do not replace the state weight-distance credential.

New York highway use tax

New York’s highway use tax (HUT) applies to motor carriers operating any of the following on the public highways in New York:

• Automobile, truck, tractor, or other self-propelled device, alone or in combination with any trailer, semi-trailer, or dolly, with a gross weight more than 18,000 pounds; or
• Truck with an unloaded weight more than 8,000 pounds; or
• Tractor with an unloaded weight more than 4,000 pounds.

The HUT is based on the gross or unloaded weight of the motor vehicle and the number of miles the vehicle traveled on all state public highways.

All carriers subject to the tax must display an HUT decal on vehicles subject to the tax and file the highway use tax return, on a monthly, quarterly, or annual basis depending on the amount of the preceding calendar year's tax liability.

Oregon weight-mileage tax

Oregon’s mileage tax applies to all carriers, private and for-hire, operating both intrastate and interstate, with vehicles having a combined weight over 26,000 pounds. The weight-mile tax is based on the carrier’s declared weight of the vehicle and the distance in which the vehicle travels in Oregon.

Carriers must file and pay the Oregon weight-mile tax on a monthly basis.

Each state’s program has unique thresholds and reporting rules, making an understanding of compliance requirements essential for carriers operating across state lines.

How do mileage permits differ from other permits?

Mileage permits, fuel permits, and trip permits each serve different regulatory purposes—understanding these distinctions helps carriers stay compliant and avoid costly mistakes.

• Mileage permits: Tax is based on miles driven within a state and often tied to vehicle weight.
• Fuel permits (IFTA): Tax is based on fuel purchased and used across multiple states/provinces.
• Trip permits: Vehicle registration trip permits offer temporary authorization for carriers not regularly operating in a state.

Mileage permits are in addition to fuel permits and must be managed separately.

Common scenarios requiring mileage permits

Motor carriers often need state mileage permits in specific situations, where meeting weight criteria triggers additional compliance requirements. For example:

• Hauling through Connecticut, Kentucky, New Mexico, New York, or Oregon: If your vehicle meets the weight criteria, you must secure the appropriate permit before entering or operating in these states.
• Fleet expansion or new routes: Adding heavier vehicles or new routes may trigger new permit requirements.

Consequences of non-compliance

Consequences of non-compliance include:

• Fines and penalties: States impose significant fines for operating without proper permits.
• Operational delays: Vehicles may be detained or denied entry.
• Loss of business: Repeated violations can harm reputation and lead to loss of contracts.

Tips for simplifying the permitting process

The following tips can simplify the permitting process:

• Use permit services: Many companies offer services to help carriers obtain and manage state mileage permits efficiently.
• Stay informed: Monitor state websites and industry updates for changes in requirements.
• Automate tracking: Use fleet management software to track miles and generate reports.
• Centralize compliance: Assign a compliance manager or team to oversee permits and filings.

Recent changes and trends

Recent changes and trends include:

• Increased enforcement: States are stepping up enforcement as fuel tax revenues decline.
• New requirements: Connecticut’s HUT began in 2023, and other states may follow suit.
• Focus on electric/hybrid vehicles: As these vehicles become more common, states are seeking new ways to capture lost fuel tax revenue.

Motor carriers must proactively manage state mileage permits to avoid penalties and ensure smooth operations. Staying up to date with changing requirements and leveraging permit services can greatly simplify compliance.