The agreement now moving through the state Legislature would replace the onerous ton-mile tax with a flat annual registration fee and pay ATA $27 million in damages. The lawsuit was asking for $124 million.
Weight and miles driven would still be the basis for the new annual registration fee, but a flat rate would be applied in three mileage ranges: under 7,500 miles, 7,500-50,000 miles, and over 50,000 miles. Intrastate haulers are complaining because the deal will dramatically increase their taxes.
The settlement got on the fast track after a judge ruled that Idaho's two-tiered weight-distance tax was unconstitutional, because intrastate truckers paid less than interstate operators.