Motor Carrier CPC Cancellations Open Up Tax and Registration Difficulties

In an effort to clean-up its records, the Pennsylvania Public Utility Commission alerted certain taxpayers that they could lose their Certificate of Public Convenience. This could have serious tax consequences for those who had benefitted from a related sales and use tax exemption.

Many Pennsylvania taxpayers operating under a Pennsylvania Public Utility Commission (PUC) Certificate of Public Convenience (CPC) recently received a tentative order from a public meeting held on April 16, 2026. Specifically, it addresses concerns associated with numerous motor carrier entities that have for at least the past two years filed with the PUC zero operating revenue reports. The motor carriers that have been contacted could possibly have their CPC cancelled unless they resolve the issue within 30 days after publication in the Pennsylvania Bulletin, a weekly report used as a public record for state agencies. Based upon discussions with the PUC, the notice is scheduled to be published as of June 6, 2026.

Implications of CPC Cancellation

The notification from the PUC was made to “clean-up” its records and remove taxpayers who are no longer operating under the authority of the PUC. Importantly, the order also directs the Department of Transportation to suspend the vehicle registration(s) of carriers whose CPCs are cancelled.

Perhaps one of the biggest concerns is that the publication of these entities could create additional enforcement from Pennsylvania’s Department of Revenue. Entities created and operating as a common carrier may avail themselves of an exemption from Pennsylvania’s sales and use tax for various transactions. But if entities have been taking advantage of the common carrier sales and use tax exemption for Pennsylvania purposes, they run the risk of losing this exemption prospectively and possibly having previously claimed exemptions challenged by Pennsylvania.

Help Is Out There

Several taxpayers are already getting assistance regarding the next steps to be considered by the compliance due date of July 5, 2026. Pivot, for example, is reviewing the initial creation of the entity, legal agreements entered into by the entity for operations, historical exemptions claimed that could or could not be exempt under the common carrier exemption, and helping ensure the common carrier exemption can be claimed properly going forward.

If you received notification from the PUC or are currently operating and taking advantage of the Pennsylvania common carrier exemption for Pennsylvania purposes, reach out to your financial and tax advisers immediately to discuss your facts and circumstances in an effort to properly resolve the issue.

Jason C. Skrinak, CPA, is the founder of Pivot Strategic Consulting and has over 20 years of experience in public accounting and a background in state and local tax consulting. You can contact him through Pivot.

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Statements of fact and opinion are the author's responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.