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Wednesday, November 29, 2023

Jurisdictional Issue Prevents Court Decision

ย A federal judge ruled his court lacks the jurisdiction to hear a lawsuit filed by three carriers and the ATA (American Trucking Associations) against the truck-only tolls in Rhode Island.

The carrier group stated in their lawsuit, โ€œThis toll regime was designed to, and does, in fact, impose discriminatory and disproportionate burdens on out-of-state operators and on truckers who are operating in interstate commerce.โ€

Federal Judge, William Smith, agreed with defendant Peter Alviti (Director of RIDOT), in stating that the tolls constitute a โ€˜taxโ€™ under the stateโ€™s Tax Injunction Act (TIA), and therefore the federal court lacks jurisdiction.

โ€œAlthough not referred to as โ€˜taxesโ€™ in the authorizing legislation, the tolls were enacted with the express intention of raising revenues to cover a long-standing infrastructure โ€˜funding gap,โ€™โ€ Smith said in a statement issued March 19.

He added, โ€œ[They] are really a highly targeted and sophisticated tax designed to fund infrastructure maintenance and improvements that would otherwise need to be paid for by other forms of tax-generated revenue. As such, the court is without jurisdiction under the TIA.โ€