Waynes World - June 2010
ROADCHECK 2010 IS COMING, A REMINDER
ABOUT NEW CARB REGULATIONS, AND...
THE OWNER OPERATOR
OF THE FUTURE
by Wayne Schooling
ROADCHECK 2010
During a 72-hour period in the second week of this month, on June 8-10, thousands of CVSA inspectors will be examining over 70,000 vehicles during Roadcheck 2010. Every year about 10,000 CVSA-certified local, state and federal inspectors, at 1,500 locations across North America, perform truck and bus inspections. What they find or don’t find can affect your CSA 2010 scores. And remember, even violations not resulting in an out-of-service order will be counted into your CSA 2010 Safety Measurement System. Some facts to consider regarding last year’s Roadcheck are: 1) Some 72,782 inspections were performed; 2) Of those vehicles inspected, about 20% (14,130 of them) were placed out-of-service for various mechanical problems; and 3) About 17 trucks or buses were inspected every minute. Since Roadcheck’s inception in 1988, the roadside inspections have numbered over a million.
A REMINDER ABOUT NEW CARB RULES
As you probably know, the California Air Resources Board (CARB) Truck and Bus Regulation has now become law. The law, which was passed on December 12, 2008, aims to significantly reduce emissions from existing on-road diesel-powered vehicles operating in California. The law requires affected trucks and buses to meet certain performance requirements between 2011 and 2023. By January 1, 2023, all vehicles must have a 2010 model year engine or equivalent. Affected vehicles include most diesel-fueled trucks and buses with a gross vehicle weight rating (GVWR) greater than 14,000 pounds.
Most fleets need to report and begin clean-up requirements starting January 2011. Special provisions to delay requirements are available for small fleets. Fleets with three or fewer vehicles do not have to report until January 31, 2011 and do not have clean-up requirements until January 1, 2014. You can sign up for e-mail notifications and get more information at www.arb.ca.gov/dieseltruck.
Early reporting was required beginning March 31, 2010 for fleets who wish to take advantage of special provisions made for agricultural vehicles and those fleets that operate dual-engine sweepers.
Any person selling a vehicle with an engine subject to this new Truck and Bus Regulation must provide specific disclosure language, in writing, to the buyer on the bill of sale. The Heavy-Duty Vehicle Greenhouse Gas Emission Reduction Regulation is also in effect. All 2011 and newer model year box-type trailers and the tractors that pull them must now be SmartWay Certified or equivalent. Existing equipment must meet similar requirements starting in 2012 for tractors and 2013 for trailers. Additional flexibility is available for fleets that report by July 1, 2010. For more information, contact CARB’s diesel hotline at 1-866-634-3735.
THE INDEPENDENT OF THE FUTURE
If you remember back in April, I informed my readers about how the government was cracking down on independent contractors by going after motor carriers, claiming they were misclassifying their drivers. The motive is simple – taxes. The government has found that it is easier to get tax money from you, the independent, by going after the not-so-smart motor carriers. They penalize the carrier with a one-time fine, but now the IRS knows who you are and where to find you, allowing them to now tax you year after year after year for the rest of your life.
Leona Helmsley, who once owned the Empire State Building, once said, “Only little people pay taxes.” Well, she was right, but she said it too loudly and drew attention to herself and wound up in jail for tax evasion. Fact: in 1935, there was a case (Gregory vs. Helvering, 293 U.S. 454) that said, “The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or to altogether avoid them, by means which the law permits, cannot be doubted.”
Fact: in 1943, the U.S. Supreme Court said: “Whether the purpose (of incorporating) be to gain an advantage under the law of the state of incorporation or to avoid or comply with the demand of creditors, so long as that purpose is the equivalent of a business activity or its following by the carrying on of businesses by the corporation, the corporation remains a separate taxable entity.”
Fact: the New York Times reported on April 14, 2010 that 47% of all American households owed no income tax for 2009. That leaves 53% of America paying the IRS. Were you one of them? Taking all of these facts into consideration, coupled with the fact of the upcoming FMCSA regulations (EOBR and CSA 2010), all independent contractors need to ask themselves if they are going to stay in this industry as a “Professional Driver” or just be a steering wheel holder.
If you decide to continue driving in this industry as an Independent Contractor, then you better start using a corporate structure as soon as possible – not only to protect your personal assets, but to reduce your taxes as well. Why go to such extremes and extra costs? The answer is simple – respect and self preservation. I want you to think about all the things you have acquired in your life. Do you own any rentals, property, a motor home, boat, motorcycles, etc? One motor vehicle accident could wipe that all away, if you’re a sole proprietor. But if your company was a corporation, then only the assets of the corporation would be at risk.
The Independent Contractor of the future will be a Professional Driver, have a clean driving record and be incorporated. If you have all of these things, motor carriers will trample over themselves to get to your door and offer you more money to drive for them. No matter what kind of corporation you choose (S, C or LLC), you will be way ahead of the game compared to most. Until next month, “Drive Safe – Drive Smart!”
~ NTA is a name and organization you can trust. Not only is our website (www.ntassoc.com) an official US DOT Internet Training Site, but we are also the administrators of a Nationally Accredited Drug and Alcohol Program. If you have any questions, call me at (562) 279-0557 or send me an e-mail at wayne@ntassoc.com. Until next month, “Drive Safe – Drive Smart!”