Assessment of IRP Truck Licensing for Ohio Counties

Ohio officials are concerned with the disconnect causing an International Registration Plan (IRP) revenue shortfall. County governments and taxing districts are not given enough IRP revenue to correct the amount of pavement damage caused by commercial vehicles on local roads. Researchers determined the disconnect stems from a combination of Ohio’s IRP distribution process and the growing phenomenon of “jurisdiction shopping”, which is where companies register trucks in an IRP jurisdiction that is not the vehicle’s primary domicile location. Doing this saves the company money on non-IRP taxes and fees. Although IRP fees are still apportioned based on miles traveled, the money is distributed to counties and taxing districts differently than if the vehicle was registered in Ohio. Currently, there are more than 20,000 vehicles belonging to a company with a primary address in Ohio, but registered in another jurisdiction. The result is significant revenue impacts on Ohio counties, municipalities, and townships. In 2015, the authors predict the direct and indirect impacts will be $10.13 million for counties, $2.89 million for municipalities, and $684,997 for townships. The cumulative effect for all counties and taxing districts is as much as $13.7 million, although the true impact is potentially higher when additional factors are taken into account.