proposal by Missouri Gov. Bob Holden would end the sales tax exemption
for common carriers that buy new trucks, truck parts or pay for
truck repairs, the Southeast Missourian reported Jan. 28.
proposal is part of the governor’s plan to cut an expected $1 billion
shortfall in the state’s budget, the newspaper reported.
than 13,000 new or used trucks or trailers received the tax exemption
from Missouri during the first 10 months of last year. Ending the
exemption for those and other trucks would raise just under $10
million, according to information contained in the proposal.
at several trucking companies told the newspaper the Holden proposal
would cause significant damage to their companies.
Iveson, deputy director of the state Division of Taxation, told
the Missourian some trucking firms – for example, moving companies
– would still have the exemption. But most would not. Missouri borders
two other states that lack common carrier exemptions - Arkansas
Arkansas is currently considering a proposal that would limit the
sales tax paid by truck owners. HB1030, which is now under consideration
by that state’s House of Representatives, would limit taxes on a
tractor to $1,000 and on a trailer to $500.