New Louisiana law clarifies tax exemption for certain trucks

| 7/17/2007

Louisiana Gov. Kathleen Blanco signed a bill into law clarifying the state’s sales and use tax exemption for certain trucks and trailers. Another new law repeals a tax on household movers.

Louisiana law already exempts from sales and use tax trailers and trucks with a gross weight of at least 26,000 pounds as long as they are used at least 80 percent of the time in interstate commerce and are subject to the jurisdiction of the U.S. Department of Transportation.

The new law, previously HB240, establishes a set of criteria for determining eligibility for tax exemption for a subset of the trucks and trailers covered by the current tax exemption. It applies the new criteria to trucks weighing at least 80,000 pounds.

A requirement has been added that the determination of whether a truck is used at least 80 percent of the time in interstate commerce be based solely on the actual mileage of the truck. It mandates that no truck weighing less than 80,000 pounds have more than 20 percent of its miles run within the state.

Supporters say the changes will keep Louisiana-based trucking companies competitive with neighboring states.

The new law already is in effect.

Another bill signed by the governor removes household goods movers from the state’s definition of “motor freight lines.” The declassification exempts household movers from paying a 2 percent tax assessed on gross receipts resulting from business within the state.

The new law, previously SB108, will result in the state’s general fund losing out on about $675,000 during the next five years.

To view other legislative activities of interest for Louisiana, click here.

– By Keith Goble, state legislative editor