The New Connecticut Highway Use Tax in Detail + Top Paying Loads in Trucking

The new Connecticut Highway Use Tax (HB6688) is likely to go into effect on January 1, 2023 and many truckers are up in arms about it. In this video, we explore this new HUT tax in greater detail and look at its effects on the trucking industry.

This video was inspired by @MuthaTrucker when he produced his two videos talking about the newly approved Connecticut Highway Use Tax.
https://www.youtube.com/watch?v=xpxUN4uLglE - Short Video
https://www.youtube.com/watch?v=U_2rJEa8MkA - Longer Video

Unfortunately he didn't go into too much detail about everything discussed in this bill and I wanted to know more and report back to you guys. So here it is.

The bill has been approved by the majority democrat legislators and is now waiting for Governor Ned Lamont's signature and unfortunately it's highly likely to be signed into law. The reason I saw this is because he tried passing a $600M road use tax on all vehicles in the state of CT which would act as a toll for all drivers.

This tax is based on miles traveled plus it looks at truck size which basically singles out truckers from 26,000 lbs and up. It's estimated to bring in $45M in revenue to the state in its first year and $90M each year thereafter. The Connecticut Heavy Use Tax starts at 2.5 cents for trucks 26k - 28k in GVW and goes up to 17.5 cents per mile for trucks 80k Lbs. GVW and above.

Worse yet, the Connecticut Highway Use Tax applies to all roads in the state and not just state highways. Yet it also conveniently exempts state and federal trucks of the same size from the tax. Furthermore, it exempts political subdivisions and transport companies dealing with milk and dairy products which are driven from farm to farm.

The question is, will this burden businesses? Will this place the burden on trucking companies? Will this flow over to the consumer in higher prices on basically everything you can find in a store?

I believe the reason this is all happening is because the Connecticut infrastructure is falling apart and they need to find ways to tax people and companies to pay for the crumbling roads and bridges. You see, Connecticut has a Special Transportation Fund which pays for road repairs and similar infrastructure upgrades. Unfortunately it has been finishing in a deficit every year except for 2020 which may because of the lower amount of vehicles on the road at that time.

The fund has an emergency reserve but that reserve will be depleted in 2026. This further highlights their possible reasoning behind this new highway heavy use tax. They've basically decided to punish truckers for the damage done to the roads while completely forgetting that there would be no products in store shelves if it wasn't for truckers, trucking companies, and their semi trucks that deliver the goods every single day.

At this time, Connecticut borrows $800M - $900M dollars annually for upgrades and that cannot go on forever. Another reason which likely drove them to push for this new road tax hike.

I guess one good thing is that similar tax were abandoned in the past by 20 states but we also know that other states such as New York do have such a tax. Let's also not forget that this Connecticut Heavy Use Tax is on top of the IFTA and IRP taxes paid by all trucking companies for miles traveled through the different states in the country.

So what's about to happen? Are truckers going to stop on the Connecticut state line? Will they refuse to enter the state? Will products be delivered on HotShot trucks? Is HotShot Trucking about get a boost in Connecticut and other Northeastern states?

The bottom line is that starting January 1, 2023 - if you want to operate in the state of Connecticut, you're going to have to have a permit.

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