One of the best things about living in Alberta is no Provincial sales tax, especially if you move here from a Province that has PST, it is like everything is on sale all the time! In my blog The Confusing World of Alberta’s Safety Fitness Certificates (SFC), I explained the differences between Federal and Provincial SFC and the additional regulations federally regulated carriers must be aware of in other jurisdictions. Another thing to be aware of is the carrier’s obligation to pay PST to the jurisdiction you are operating in. Disclaimer, I do not work in IRP, IFTA or PST, this information is general information I have learned, for specifics contact your IRP/IFTA tax consultant or British Columbia and Saskatchewan tax office.
PST Charges for Alberta Trucking Companies in British Columbia
Alberta-based trucking companies operating in British Columbia (B.C.), face Provincial Sales Tax (PST) in B.C. due to its specific rules for multijurisdictional vehicles (MJVs). For Alberta trucking companies, understanding how and when PST applies to their fleet is essential for staying compliant and avoiding unexpected tax assessments or audits.
Here’s a breakdown of how PST applies to Alberta-registered trucking companies when operating in B.C., based on information from the Consumer Tax Audit Manual and PST Act.
PST and Multijurisdictional Vehicles (MJVs) in B.C.
When Alberta trucking companies operate in B.C. using multijurisdictional vehicles (MJVs), they become subject to B.C.'s PST on a proportional basis. This proportion is calculated based on the ratio of kilometers traveled in B.C. compared to the total distance traveled in all jurisdictions.
Key Points to Note:
PST Charges for Alberta Trucking Companies in Saskatchewan
As an Alberta trucking company operating in Saskatchewan, understanding your Provincial Sales Tax (PST) obligations is crucial. Saskatchewan requires trucking companies based in Alberta, to pay PST on certain goods and services. Here is what Alberta trucking companies need to know about PST in Saskatchewan.
Understanding the Prorated Vehicle Tax (PVT)
Alberta trucking companies registered for interjurisdictional travel in Saskatchewan are subject to the Prorated Vehicle Tax (PVT). The PVT is designed to proportionally tax vehicles based on the distance they travel in Saskatchewan. If you have an apportioned vehicle registration (cab card) that includes Saskatchewan, you will pay the PVT upon registering your vehicles in the province.
This tax is calculated based on the taxable value of the vehicle, the applicable tax rate, the Saskatchewan distance ratio (the portion of total distance traveled in Saskatchewan), and the remaining months in the registration period. This ensures the tax reflects the vehicle's actual use in the province.
Staying Compliant: Best Practices
Alberta-based trucking companies can minimize the risk of tax complications by following these best practices:
Audit Implications for Alberta Trucking Companies
PST audits are common and are part of broader compliance checks that often include IFTA and IRP audits. A company may be selected for an audit if they’ve not been previously audited or if their tax filings raise red flags (e.g., exceptional mileage or fuel reporting). Trucking companies must be prepared for these audits by keeping thorough and accurate records of their operations, particularly when it comes to distances.
Conclusion
If you are an Alberta trucking company reporting kms to IRP and IFTA but, not paying PST in British Columbia or Saskatchewan you may want to investigate that. It's crucial for Alberta-based trucking companies operating in British Columbia and Saskatchewan to understand and comply with PST obligations in these provinces. Whether it's B.C.'s rules for multijurisdictional vehicles or Saskatchewan's Prorated Vehicle Tax, keeping track of kilometers traveled, properly estimating tax liabilities, and maintaining accurate records is essential for avoiding audits and penalties. By staying informed and prepared, carriers can ensure compliance and minimize the risk of unexpected financial obligations.
It’s Rodeo season in Alberta! Albertans attend local rodeos to celebrate the important history of the rodeo and more importantly the impact livestock and agriculture have on our community. When listening to the opening remarks of the various elected officials that attend these rodeos remember this, Alberta Transportation and Economic Corridors created a special permit for the oil and gas industry. A permit that is not available to the livestock transportation sector despite the urgent need and requests from those drivers and carriers. See my blog The dirty business of lobbying and the impact on road safety for the specific details of that sketchy deal.
The oilfield exemption permit exempts federally regulated drivers operating under the oilfield permit from using a ELD (Electronic Logging Device), exempts the driver from the cycle restrictions and does not require the driver to record a work shift start and end time, only total hours. Federally regulated livestock transportation companies are required to install ELD’s and those drivers have zero exemptions.
The FMCSA (Federal Motor Carrier Safety Administration), the United States transportation regulatory body, has a livestock transportation exemption, 395.1 (k)(4) (Federal Motor Carrier Safety Regulation). The exemption was built into the ELD regulation and no permit is required. The ELD mandate in Canada requires a certified ELD to be programmed with the Canadian and the United States hours of service rules. The basis of the NAFTA agreement was to facilitate cross border trade between Canada, Mexico and the United States. How does allowing an exemption for US drivers but not Canadian drivers operating in the United States make any sense or respects the spirit of NAFTA?
The Alberta government mandate is focused on revenue generation and building the Alberta War Chest. If Alberta Transportation and Economic Corridors is not interested in allowing a free exemption for Livestock Transportation providers, then establish a Livestock ELD permit and make some money. The Province of Manitoba issues an ELD exemption permit why can’t Alberta?
The Honourable Devin Dreeshen, Minister of Alberta Transportation and Economic Corridors just announced in a news release July 4, 2024; Alberta is marking more than a year of working with Saskatchewan and Manitoba through the Prairies Memorandum of Understanding (MOU) to advance economic corridors and enhance collaboration with Alberta’s prairie neighbours. To date, the three provinces have achieved harmonization of regulations related to commercial carriers that improve both safety and regulatory requirements.
“By keeping the momentum of the Prairies MOU going, we can continue to lead the way in building economic corridors, cutting red tape, and creating jobs. This paves the way to make nation-building projects a reality again in western Canada.” Devin Dreeshen, Minister of Transportation and Economic Corridors
While the Prairies Memorandum of Understanding was supposed to harmonize regulations, the absence of ELD permits or ELD interpretations for commercial carriers in Alberta raises questions about consistency and accountability. It is crucial for commercial carriers to advocate for a level playing field and demand transparency from Alberta Transportation and Economic Corridors.
As Albertans gather to celebrate Rodeo season and the contributions of livestock and agriculture, it's essential to address the unequal treatment of transportation providers in the province. The disparities in ELD exemptions highlight broader issues of fairness, safety, and accountability within the industry. It’s not nice to play favorites.
The Federal HOS was amended to mandate that drivers must use a certified Electronic Logging Device (ELD) to automatically record driving and working time instead of a paper logbook. The ELD section of the Federal Hours of Service (SOR/2005-313) (HOS) is 77 and the ELD mandate was fully enforced as of January 1, 2023. It is important to remember the HOS duty status limits (working time) and off duty time requirements did not change.
A driver is never exempt from the HOS duty status time limits but, the driver may be exempt from using a ELD to record time. The driver, if operating under an exemption, must record duty status time using an alternative time record such as a paper log. ELDs have the ability to accommodate exempt and non-exempt drivers, Technical Standard 3.1.3 but, the driver must be trained to use the exempt driver functionality.
It depends, each provider is different but, the costs a carrier should be aware of are: device cost, lease or buy, contract length, data charges, cloud storage and support. A ELD works exactly like a cellphone and just like cellphone contracts need to be reviewed carefully. All ELDs function the same the only difference is the user interface for the driver and carrier. Some ELD providers offer a Federal and Provincial application if you run 2 companies.
ELDs are important because it’s the law, if a driver has a serious incident without a functioning ELD the consequences can be grave for the carrier and the driver. Penalties for ELDs roadside and administrative in audit can get expensive. ELD penalties contribute to negative points on a carrier profile.
Certified ELD devices can be found on the Transport Canada website. Only certified ELDs can be used in Canada. The header page of a RODS contains the ELD Authentication Value, ELD Identifier and ELD Certification ID that confirm the authenticity. Motor carriers need to do required software updates to ensure the ELD remains compliant.
No, Raven teaches motor carriers and drivers how to use the ELD they currently have. We help carriers set up new ELDs to ensure compliance at the start. Raven can help motor carriers set up effective ELD monitoring policies to ensure compliance and limit liability in the event ELD data is needed as evidence.
What do planes, trains and semi trucks all have in common? Regulations to ensure the operators of those vehicles do not work fatigued. The Federal Hours of Service HOS (SOR/2005-313) regulates the amount of time a commercial driver is allowed to drive, be on duty and mandatory off duty time limits. The intent of regulating a driver’s time is an attempt to mitigate the number and gravity of truck crashes by tackling driver fatigue.
All carriers holding a Federal Safety Fitness Certificate (SFC) must follow the Federal Hours of Service (HOS) SOR/2005-313, which includes the mandatory use of Electronic Logging Devices (ELDs) for tracking driver hours (HOS 77). It is important to recognize that some provinces in Canada like Alberta and Manitoba have both federal and provincial SFCs, leading to potential variations in HOS regulations between federal and provincial rules. Example, a carrier with a provincial SFC has no cycle limitations and can be on duty a total of 15 hours a day. A carrier with a federal SFC is limited to 70 hrs in 7 days or 120 hours in 14 days in a cycle and on duty a total of 14 hours in a day. Moreover, some provinces like Alberta did not adopt the ELD mandate for carriers with Provincial SFCs. Regardless of the specific type of Safety Fitness Certificate held by a carrier, all drivers operating regulated commercial motor vehicles are obligated to comply with the relevant Hours of Service duty status limits. This underscores the importance of understanding and adhering to the appropriate regulations to ensure compliance.
The Federal Hours of Service (SOR/2005-313) section 4 outlines the responsibilities of motor carriers, drivers, shippers, consignees, safety officers, dispatchers, and others to help prevent driver fatigue.
They are responsible to ensure a drivers must not drive if:
ELDs record time by the second and track how much time is remaining in a drivers shift. The ELD alerts the driver 30 minutes before a duty status limit is reached, Technical Standard 4.6.4. Drivers and persons listed in Section 4 of the HOS must be trained in the rules of HOS. However, it is no longer imperative to understand the minutia of team split sleeper or deferral calculations because the ELD does and the ELD monitors and alerts the driver to available time.
On duty and driving limits: driving and on duty time is automatically recorded by the ELD. Team drivers must authenticate (log in) to the ELD, (Technical Standard 4.1.4 b). The ELD monitors and calculates time concurrently for team driving conditions such as; team split sleeper berth.
Operating zone is set by the motor carrier during the drivers account creation (Technical Standard 7.46). The ELD will track and alert the driver 30 minutes before a duty status is reached. North of 60 covers three territories: Nunavut, Yukon, and the Northwest Territories. There are no daily limits only work shift limits.
A driver is allowed to defer 2 hours of off duty time to the following day. This allows drivers to obtain two additional driving and on-duty hours in a 24-hour period (Day 1). Then, they can take the required two hours off immediately the next day (Day 2).
The ELD will track and alert the driver to the time requirements ensuring compliance to the regulation.
Certified ELDs are now required for commercial carriers as part of the law. Carriers must understand how ELDs work and how to review the data they generate. Previously, drivers used paper logbooks to track their time, with the burden of accurate recording falling on the driver. Carriers were responsible for monitoring these logs, but they provided historical information. With ELDs offering real-time certified data, it is now the motor carrier's duty to actively monitor drivers through the ELD's features and confirm the accuracy of their records of duty status (RODS). In case of a serious collision, the carrier can no longer shift blame to the driver, claiming ignorance of any violations of driving hours, as they are now expected to constantly monitor and verify compliance using the ELD data.
A ELD (electronic logging device) is a device that automatically records information using the CMV (commercial motor vehicle) ECM (Electronic Control Module), truck sensors and GPS trilateration to automatically record driving time. Fun fact, February is Black History Month and we need to acknowledge GPS was invented by mathematician Gladys West who was the second black woman to be hired to work as a programmer for the US Navy. As a CMV is moving the ELD is receiving information from the ECM and comparing that information to GPS position to monitor compliance to the Federal Hours of Service HOS (SOR/2005-313) and the Technical Standard.
A driver’s day in ELD sequence.
The ELD records all the required information from the Federal Hours of Service HOS (SOR/2005-313) and additional device compliance health monitoring in the Technical Standard. The data collected is related to: carrier identification, driver identification, vehicle identification, driver location information at prescribed intervals and each change of duty status, a running and cumulative odometer and engine hours total, duty status totals and ELD identification information.
The drivers’ daily, workshift, cycle and off-duty requirements are continuously monitored, and a driver is alerted within 30 minutes of reaching a duty status limit.
The ELD continuously monitors the device functionality and alerts the driver if any data is missing or there is a connectivity issue. Drivers are prompted to provide missing information if data is not automatically recorded. Drivers are alerted to uncertified RODS and missing data elements. Unidentified driving records must be accepted or rejected by the driver and no other information can be entered until unidentified driving time is resolved, Technical Standard 4.1.5 3).
The data from the ELD is shared between the drivers in-truck device and a dashboard or portal for the motor carrier to monitor the entire fleet. All the data is stored on the cloud for 6 months and can be retrieved by the carrier for inspection. The motor carrier is expected to monitor the drivers continuously using the information generated from the ELD. A driver should never be in a out of service condition for HOS because as soon as the driver is alerted to a problem the driver is supposed to immediately stop and alert the carrier. The driver and carrier are supposed to work together to resolve the issue and if the issue cannot be resolved follow the OOS criteria. The data doesn’t lie and the data doesn’t go away.
