The Federal Motor Carrier Safety Administration (FMCSA) recently issued a proposed rule that would reduce Unified Carrier Registration (UCR) fees for 2020 and 2021.
The reduction in annual UCR fees applies to motor carriers, private motor carriers of property, brokers, freight forwarders and leasing companies that are paying fees to their respective state.
What is the Unified Carrier Registration fee reduction?
The UCR fee reduction would be for 12.82% in 2020 and 4.19% in 2021, based on the rates paid in 2018, however the Unified Carrier Registration vice chairman of the board of directors stated that the rates are expected to decrease by another 1-2%.
As an example, a carrier with a fleet of two or more trucks paid $69 in 2018 and $62 in 2019, but after the fee reduction, they would only pay $60 in 2020 and $66 in 2021.
How are the UCR fees calculated?
Fees are calculated based on collections of the second year prior, which would be 2018 right now. Based on federal law, requests for fee adjustment are required when the annual revenue exceeds the maximum allowed and the board estimates that by the end of 2019 the total revenue will exceed the maximum by $3.08 million.
If there are excess funds after other costs are covered, such as payments to the states and administrative costs, they are retained and fees for the following year are reduced.
Based on the board’s research, the fee reduction includes a reduction in the amount of the administrative cost allowance from $3.5 million to $3.2 million for the 2020 and 2021 UCR Agreement registration years. They have also determined that the administrative cost allowance needed for the 2020 and 2021 registration period should be $3.2 million for each registration year.
The agency reviewed the board’s formal recommendation and concluded that its projection of the total revenue received for registration year 2018 is acceptable.
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