The Supreme Court will decide by next summer whether Michigan has overcharged truckers who pass through the state. Yellow Freight System, the largest subsidiary of Kansas-based Yellow Corp.,
says Michigan should not be able to charge $10 to register trucks that have Illinois license plates. If the company wins, Michigan could have to repay $425,000 and stop charging the fees for any truck with Illinois plates, according to the Associated Press.
The case revolves around a law passed by Congress in 1991 that said states could not raise truck registration fees "collected or charged" as of Nov. 15, 1991. States are allowed to charge a registration fee of up to $10 for every truck that passes through its borders. Many states agree to waive fees for trucks that are registered in another state if the other state allows their trucks to pass through without paying the fee, which helps their trucking companies save money.
Michigan had such an agreement not to charge fees for trucks with Illinois license plates. But in 1991, Michigan changed its policy to say the trucks must have their principal place of business in Illinois -- not simply a license plate from the state -- to qualify for the waiver in 1992.
Yellow Freight System says its 3,700 trucks with Illinois plates should not have to pay the fees because they weren't required to do so on Nov. 15, 1991.
If Michigan wins the case, other states could force trucking companies to pay about $150 million more a year to register their vehicles, Yellow Freight told the court.
The case is Yellow Freight System v. Michigan, 01-270.
says Michigan should not be able to charge $10 to register trucks that have Illinois license plates. If the company wins, Michigan could have to repay $425,000 and stop charging the fees for any truck with Illinois plates, according to the Associated Press.
The case revolves around a law passed by Congress in 1991 that said states could not raise truck registration fees "collected or charged" as of Nov. 15, 1991. States are allowed to charge a registration fee of up to $10 for every truck that passes through its borders. Many states agree to waive fees for trucks that are registered in another state if the other state allows their trucks to pass through without paying the fee, which helps their trucking companies save money.
Michigan had such an agreement not to charge fees for trucks with Illinois license plates. But in 1991, Michigan changed its policy to say the trucks must have their principal place of business in Illinois -- not simply a license plate from the state -- to qualify for the waiver in 1992.
Yellow Freight System says its 3,700 trucks with Illinois plates should not have to pay the fees because they weren't required to do so on Nov. 15, 1991.
If Michigan wins the case, other states could force trucking companies to pay about $150 million more a year to register their vehicles, Yellow Freight told the court.
The case is Yellow Freight System v. Michigan, 01-270.
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