Vehicle registration—Making a case when choosing a base
It can be tempting to register and plate your apportioned trucks in particular jurisdictions for various reasons. However, you must meet certain criteria for a state or province to qualify as your base jurisdiction.
With those criteria currently under scrutiny by administrators of the International Registration Plan (IRP), it’s important to understand and comply with the requirements to qualify in your chosen base.
Choosing your base jurisdiction
When deciding where to base plate your apportioned vehicles, you may choose any jurisdiction that’s a member of IRP and where:
- You have an established place of business,
- The fleet you seek to register under IRP accrues distance, and
- Records of the fleet are maintained or can be made available.
All three of those criteria must be met for a member jurisdiction to qualify as your base jurisdiction. A couple of important phrases are key to making your decision.
Member jurisdictions
Member jurisdictions under IRP include:
- All U.S. states (except Alaska and Hawaii) and the District of Columbia, and
- The Canadian provinces (except Yukon and Northwest Territory).
Established place of business
Determining what constitutes an "established place of business" is currently subjective and can vary from jurisdiction to jurisdiction. This has led to confusion, noncompliance findings, and disputes in some cases.
Efforts are currently underway to clarify the meaning of “established place of business” in the Plan. Currently, that phrase means that you must:
- Own or lease a physical structure located in the base jurisdiction, and
- Specify that street address on your application for an IRP account.
The physical structure must be open for business and staffed during regular business hours. That staff must include one or more persons employed by your company on a permanent basis (i.e., not an independent contractor). This is where general management of your company business occurs.
Records concerning your IRP fleet must be maintained or made available at this physical structure in the event of an audit.
Each state or province may require proof to verify that you have an established place of business within its jurisdiction.
Multiple locations?
If more than one member jurisdiction could qualify as your base jurisdiction, you may choose which of them you will apply to for apportioned registration.
Accruing distance
The second item in the list of requirements — accrual by a fleet of distance in the base jurisdiction — applies only to your apportioned fleet as a whole. Each individual vehicle of your fleet does not need to enter the base jurisdiction during the year.
Key to remember: Proposed revisions to the IRP will clarify confusion around the meaning of “established place of business” for applicants choosing a base jurisdiction. Understanding and complying with the current terms can help you avoid headaches.