Court Rules NY Truck Tolls Can’t Fund Canal System

A federal court has ruled against New York State's practice of using tolls paid by interstate truckers to finance the unrelated tourism and recreation projects that make up the New York Canal System.

The U.S. District Court ruled that using toll revenue in that way violates the Constitution's Dormant Commerce Cause because the money is diverted away from interests that actually benefit trucking. The conflicting interests are centered around the Thruway Authority, which charges tolls for the use of several major arteries of interstate commerce but also owns the canal system.

The Thruway Authority has spent over 1.1 billion since 2012 maintaining and funding the canal system, with costs reaching over $100 million annually.

“The canal system is a jewel in the crown of the Empire State, and some combination of New York taxpayers, local businesses benefitting from tourism revenue and the actual users of the Canal System's many facilities should want to pay for its upkeep,” stated the Court. “But … the State of New York cannot insulate the Canal System from the vagaries of the political process and taxpayer preferences by imposing the cost of its upkeep on those on drive the New York Thruway in interstate commerce.”

American Trucking Associations expressed support for the ruling.

“ATA believed that the courts and Constitution were clear – revenue from tolls must be spent maintaining the roads they're collected on and not diverted to finance bike paths and waterways for recreational kayaking and canoeing,” said Chris Spear, ATA president and CEO. “We hope today's ruling will not only end this practice in New York, but dissuade other states from financing their budget shortfalls on the backs of our industry.”

Related: Americans Support Mileage-Based Fees to Fund Infrastructure

Follow @HDTrucking on Twitter

National Truck League appoints VP of national growth

FMCSA helps public share road with commercial vehicles

TransCore’s Canadian freight volumes decrease in July

FMCSA launches CMV safety campaign

The Federal Motor Carrier Safety Administration (FMCSA) is launching a new highway safety campaign dubbed “Our Roads, Our Responsibility” that seeks to “raise public

read more

Used Truck Market Stable, NADA Guide Says

The used commercial truck market has generally been stable the past three months, notes an August report from NADA Used Car Guide. So far in 2016, auction prices have decreased less than 3% per month compared to nearly 5% per month in the second half of 2015.

"The sweet spot for pricing seems to be a 4-year-old truck with 400,000 to 500,000 miles," said Chris Visser, a senior analyst at the guide. “That type of truck has consistently brought pricing in the low to middle $40,000 range since January.

"That price range is attainable for many buyers, and the truck still has a year or two before a minor overhaul will be necessary." Visser's presentation on the August report is here.

The August report also says the market is less positive on the retail side. Three- to five-year-old trucks lost more of their value than anticipated because large groups of similar trucks brought average prices down. That group has lost 14% of its value so far this year, compared to 5% in the same period last year.

In general, NADA analysts state in the August Commercial Truck Guidelines that the market is back to its typical 3% to 5% monthly depreciation rate. Analysts point out the behavior is logical given current conditions. The freight environment remains moderately negative, but the domestic economy generally continues to show incremental upward growth.

NADA analysts do not expect any significant market changes through the end of the year. The conclusion is based on past presidential election cycles, which typically keeps industry from betting on large investments.

Follow @HDTrucking on Twitter

Mack launches new parts and service purchasing platform