What the best state to be a trucker in?

As a trucker, when a state wants to charge me employment tax while driving through their state, can I file for unemployment in that state after I cross the border and leave that state?

• Answer:

  I do not know of any states that charge truck drivers additional "employment" taxes simply for driving through the state, so I will assume you are referring to various business taxes and personal property taxes imposed by many states on any other business with commercial activity in the state. New Jersey and Ohio are prime examples of states with such "Commercial Activity Tax." New Jersey's tax catches only self-employed truck drivers and motor carriers who are incorporated. You must pay this tax if you picked up of delivered a load within the state of New Jersey. They do not have legal nexus to tax a trucker for simply driving through. (Technically, I don't beleive they should be able to tax for picking up and delivering, but that's another issue.) Many other states also get away with charging a "Personal Property Tax" based on your apportioned tags. I believe Texas and Kansas do this quite effectively. You must pay this tax each year even if you did not do any business within that particular state for that taxable year. And of course I cannot leave out IFTA, for which you are paying taxes for every mile you travel within a state. Despite the fact that the trucking industry is so very heavily taxed, all of these additional taxes you pay will not qualify you for any benefits in any other state except the one in which you live. The only exception to this is on un-employment and possibly worker's comp, and for that you must be primarily employed in one state and living in another. There is a specific agreement between most states that addresses such an issue and it gets quite complicated. It is frustrating to have so many taxes, not just to pay, but to keep track of as well. The Owner Operators and Independent Drivers Association looked into representing this issue on behalf of drivers, but decided (and probably correctly!) that creating a stir over it may serve only to catch the attention of states that have not yet implemented such taxes. This information is based on my personal research into the issue. I have tried to be as accurate as possible. Not professional advice.