DOT/UCR Registration

State

There are many different types of transport trailers for race cars, from enclosed trailers to open tilt decks.  These types of trailers need to be registered with the state department of motor vehicles (DMV) or equivalent agency.  Most states will issue a title, registration and license plates if the trailer is over a certain minimum weight.  Trailers can generally be registered annually, biennially, or permanently.  Registration fees vary from state-to-state.  The owner must generally certify that a non-commercial trailer is covered by the minimum insurance requirements or pay an uninsured motor vehicle fee.  Trailers are subject to state and federal vehicle safety laws (lighting equipment, reflectors, conspicuity tape, etc.) and state inspection.  See your state DMV for more information. 
 

Federal

The Federal Motor Carrier Safety Administration (FMCSA) is the agency within the U.S. Department of Transportation (DOT) that regulates non-commercial carriers above a certain weight (safety registration) and commercial shipping operations (safety registration and operating authority for “for-hire” and “non-exempt carriers”).  All interstate and most intrastate carriers register with the FMCSA and are issued a DOT number, a unique identifier that allows the agency to monitor a company or independent owner/operator’s safety management practices and controls.  Any motor carrier that is required to obtain a DOT number is also required to register with the Unified Carrier Registration (UCR). 

Motorsports Exemption:  Are you required to obtain a “DOT” registration for your truck/trailer hauling a race care if crossing state lines?  Not if you fall within the exemption guidelines.  The FMCSA has issued guidance (49 CFR Part 390.3) that states:

§ 390.3: General applicability.

(f) Exceptions. Unless otherwise specifically provided, the rules in this subchapter do not apply to—
(3) The occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise;

Question 21:  Does the exemption in §390.3(f)(3) for the ‘‘occasional transportation of personal property by individuals not for compensation nor in the furtherance of a commercial enterprise’’ apply to persons who occasionally use CMVs [commercial motor vehicles] to transport cars, boats, horses, etc., to races, tournaments, shows or similar events, even if prize money is offered at these events?

Guidance: The exemption would apply to this kind of transportation, provided: (1) The underlying activities are not undertaken for profit, i.e., (a) prize money is declared as ordinary income for tax purposes, and (b) the cost of the underlying activities is not deducted as a business expense for tax purposes; and, where relevant; (2) corporate sponsorship is not involved. Drivers must confer with their State of licensure to determine the licensing provisions to which they are subject.

What is the definition of “commercial”? An exchange of goods or services for money and in-kind exchanges can be viewed as commercial.  For example, one begins to enter the commercial world when a racing activity includes prize winnings, a car part or other discounted or free items have been given in exchange for displaying the sponsor company’s logo on the trailer or race car.  Hauling someone else’s vehicle could also be construed as a commercial activity.
 

INTERSTATE

Interstate carriers operate vehicles that are authorized to operate across state and country borders.

Commercial Interstate Activities That Require DOT Number:  Commercial entities that operate across state lines are required to obtain a DOT Number if the vehicle/vehicles (truck AND trailer combination) weighs more than 10,000 pounds.  The gross vehicle weight rating (GVWR) is assigned by the manufacturer (weight of the vehicle and cargo carrying capacity) and generally found on a metal plate affixed to the vehicle.  When determining the GWVR of a combination unit, you add together the GVWR of the truck and trailer.  The GVWR is the greater of the actual weight (vehicle and cargo) or the combined GVWR set by the manufacturer(s).

VS.

INTRASTATE

Intrastate carriers operate entirely within a single state.

States That Require DOT Number for Commercial Intrastate Activities: Currently, 37 states require registrants of “commercial” motor vehicles to obtain a DOT Number even if they do not cross state lines. As of April 2021, these states include: Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Jersey, New York, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Washington, West Virginia, Wisconsin ,Wyoming, and Puerto Rico. States that do not have a DOT-registration requirement for in-state “commercial” motor vehicles may have established their own state-based system. If you obtain a DOT number, you don’t need a state number – it is just one or the other.

 

Do I Need A Commercial Drivers License (CDL)?

If the weight classification of your truck and trailer are over the 26,000-lbs limit or if your trailer has a GVWR of over 10,000-lbs, then a CDL is required.

 

Do I Need A US DOT Number?

 

Click the following link and use the interactive tool provided by the FMCSA to determine if you need a US DOT number:

Motorsports Exemption:
Remember the motorsports exemption can only apply provided: (1) The underlying activities are not undertaken for profit, i.e., (a) prize money is declared as ordinary income for tax purposes, and (b) the cost of the underlying activities is not deducted as a business expense for tax purposes; and, where relevant; (2) corporate sponsorship is not involved.

Click below for more information or to obtain a DOT number:

 

Do I Need To Register With The UCR Program?

 

Click the following link and use the interactive tool provided by the UCR to determine if you need to register:

Unified Carrier Registration (UCR):  Any motor carrier that is required to obtain a DOT number is required to register with the UCR and pay fees.  This includes private carriers and for-hire carriers.  (Examples would include owners taking their car to the track if the activity could be considered “commercial” or a person hired by the owner to take the race car to the track.)  The current fee for 1-2 vehicles is $59/year.  For purposes of the UCR, a “vehicle” has a powertrain.  It does not apply to the trailer.  The UCR is a federal program administered by the states, so the paperwork will be completed according to the state’s rules.  A few states do not participate in the UCR program, in which case the vehicle must be registered in a state that does participate in the UCR.  For more information:  https://plan.ucr.gov/about-ucr/

 

Frequently Asked Questions & Useful Tips 

 

  • Proving Activities are Non-Commercial:  While the FMCSA provides a clear-cut exemption from DOT registration, it is also very specific: (1) prize money must be declared as ordinary income for tax purposes, and (2) the cost of the underlying activities may not be deducted as a business expense for tax purposes; and (3) corporate sponsorship cannot be involved.  Therefore, if you have corporate sponsorship it is considered a commercial vehicle.  However, the state police officer questioning your trailer won’t have a copy of your tax return to confirm that you declared the winnings as ordinary income and didn’t attach a Schedule C business return.  They will only be looking for visual clues that would raise suspicion.  For example, your trailer includes a business-type name (“Joe Brown Racing”), the vehicle within the trailer or on top of an unenclosed trailer is covered with corporate logos, or the racing event has widely-advertised winnings.  The police officer may decide to issue a ticket and let you convince the judge that you are non-commercial.  Some people put words such as “PRIVATE - NOT FOR HIRE” on the trailer.  It has no legal meaning but may help discourage the officer from making a stop.      

  • What to do if stopped by the police?  Be polite, respectful, respond to requests and avoid being argumentative.  A police officer is more likely to respond favorably if you demonstrate that you are making an effort to comply with the laws/regulations for that state.



Category
Motorsports Trailers