California Compliance Surcharge

To our valued customers:

Effective February 4, 2018, JJT Logistics, Inc. will be implementing a California Compliance Surcharge to all shipments that pick-up or delivery in California.  The amount of the surcharge will be $3.99 per shipment.  JJT Logistics, Inc. finds it necessary to add the surcharge in response to the continuing increases through regulations imposed by the state of California.  Two main imposed increases are as follows:

Fuel Tax Increase-On November 1, 2017 the state of California increased the excise tax on the purchase of all motor fuel in the state.  The revenues generated from this increase in taxes will be used for construction and maintenance costs associated with the state’s highway infrastructure.  The excise tax rate for Diesel specifically has increased from $0.16 to $0.36 per gallon (an increase of $0.20 per gallon), and the additional statewide sales and use tax rate imposed on retail sales of diesel fuel increased from 9.00 percent to 13.00 percent (an increase of 4.00 percent).

Carb Compliance-The Global Warming Solutions Act, better known as “Carb Compliance” has required all transportation companies to retro fit existing equipment or retire older equipment to comply.  In order to keep up with service demands, this equipment is either retrofit or replace with new more expensive equipment.

While our competitors have instituted a California Compliance Surcharge quite some time ago, JJT Logistics, Inc. has held off until the recent fuel tax increase.  In order to provide the service that our customers have been accustomed to over the years we find it necessary to implement the surcharge.

We value your business and continued support!

Sincerely,

 

Mike Brooks

Vice President & General Manager