Keeping Roads Safe Requires Funding
Rough weather conditions and heavy vehicles can wreak havoc on the nation’s roadways. An ice storm can cause major potholes to a city’s roads in a matter of days. One tractor-trailer on a road quickly generates enough wear and tear equal to 9600 cars.
Maintaining the nation’s roads is a costly process, and the money needs to come from somewhere. The states can’t tax nature for the damage it causes, but they can tax transportation-related companies that are operating heavy vehicles. These businesses rely on the nation’s roads to stay in business. Bad roads can put their business at risk, but their business can also put the roads at risk.
States collect a Highway Use Tax, also known as a Heavy Vehicle Use Tax or Mileage Use Tax, from heavy commercial vehicles to help fund road projects which in turn, help them stay in business and stay safe on the road. But not all businesses are diligent about paying this tax.
Kentucky and Oregon want to make sure they get their money. In addition to the Highway Use Tax, these states also require a Highway Use Tax Bond. The bond guarantees that the state will get the tax money and fees owed.
In Oregon, a $2000 bond is required for commercial vehicles that are over 26,000 pounds at their heaviest. Each qualifying vehicle must have its own bond bonded before it receives permanent credentials.
In Kentucky, a bond is required for vehicles weighing 60,000 pounds and over. The bond can either be $1000 or four months tax liability, whichever is greater, not to exceed $50,000. As in Oregon, Kentucky requires each qualifying vehicle to have its own bond.
Where Do I Get a Highway Use Tax Surety Bond?
If you are in the transportation business and need a Highway Use Tax Bond, you must purchase it from a Surety through a licensed agent, such as SuretyGroup.com.
SuretyGroup.com‘s Surety Bond Specialists can often give you same-day approval that makes the process quick and easy. Our rates start at 2% of the bond amount with good credit.
Have questions? SuretyGroup.com can help. Give us a call at 1-844-432-6637 and our Surety Bond Specialists can walk you through the bonding process.
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