KHIT 133, Tax Collection Pilot Study

The objective of this research study is to determine the benefits of hiring temporary or full-time employees to work at the weigh station facilities to identify tax violators and collect revenue on behalf of the Division of Motor Carriers. Kentucky State Police - Commercial Vehicle Enforcement (KSP-CVE) inspectors and officers at Kentucky’s weigh stations are tasked with conducting inspections and monitoring compliance with state and federal regulations related to commercial vehicle safety, size and weight, taxes, and licenses. The Kentucky Automated Truck Screening (KATS) system is a tool utilized to quickly identify potential violators at the weigh stations. Due to the high level of violations identified as well as reduced staffing levels, KSP-CVE is unable to address all the potential problem. Also, the primary concern of enforcement is to address safety issues through the inspection process. As a result, the state is losing revenue from uncollected taxes. Additional staffing focused strictly on the tax violations at the weigh stations could have a substantial impact on Road Fund revenues. In 2010, Kentucky installed its first KATS system at the Boone County weigh station. An evaluation showed that this technology could increase efficiency of enforcement personnel by identify various types of violations. Since then, 15 more systems have been deployed at weigh stations and remote locations throughout the state. Thousands of trucks are screened each day using this technology, and hundreds of tax violators are identified but many are not stopped. This is primarily due to significant declines in the number of CVE personnel. Insufficient staffing has led to reduced hours of operation at the facilities and less focus by inspectors on potential violations outside of safety issues. Road Fund revenue collected roadside by enforcement has decreased each year since 2015. The impact this has on compliance with Kentucky’s tax regulations is not fully understood, but it’s expected that additional staff focus on tax collection could collect significant revenue for Kentucky’s Road Fund