Jurisdiction Shopping Among Apportioned Motor Carriers: Examination of Causes and Potential Remedies

Jurisdiction shopping refers to the practice of interstate motor carriers searching for the cheapest, most convenient jurisdiction in which to register their heavy trucks. In the past 10 years this activity has contributed to the geographic redistribution of tens of thousands of truck registrations in the United States. Some jurisdictions have lost millions of dollars in registration-related revenue as a result. Unlawful registration practices have been responsible for a considerable amount of jurisdiction shopping. However, state discrepancies in registration costs and convenience have prompted some trucking firms to engage in a legitimate form of jurisdiction shopping. States wishing to preserve their carrier registration base and associated revenue must ensure that all fees and taxes assessed on local registrants are fully apportioned to out-of-state carriers operating in the jurisdiction. In addition, a convenient carrier-credentialing regime must be provided. That entails joint administration of related interstate programs and the development of unified, streamlined processing systems that minimize registrant costs and administrative burden. Finally, the provision of a broader range of registration options, such as online registration renewal and fee payment, should be explored. These strategies will help reduce the negative consequences of jurisdiction shopping and ensure that states receive a fair share of interjurisdictional truck registration revenue.