Trucker tax relief advances again in Arkansas

| 3/20/2003

A bill to aid homebound Arkansas truckers has passed yet another test.

B1030, which would cap the sales tax on trucks in Arkansas, has been approved by the House Committee on Revenue and Taxation.

The bill had previously passed the House, but was amended in the Senate, requiring another approval in the lower chamber. The committee approval on March 18 sends the bill to the full House, which, if it approves it, would send it to the governor.

The newest version of the bill would charge the state’s sales tax on the first $9,150 of the value of a tractor and on the first $1,000 of the value of a trailer. House said that would make the tax on a trailer $51.25, and the maximum tax on a tractor $469.

The new version does not address the issue of Arkansas truckers who have been base plated in Oklahoma. The state’s Department of Finance and Administration has indicated it will collect back taxes on truckers who return to Arkansas if they purchased their trucks in the past three years. Those truckers could face tax bills of up to $6,000.

The bill had contained an amnesty provision, allowing those truckers to return to the state without paying back taxes. The Arkansas attorney general issued an opinion that the amnesty was unconstitutional, and it was removed.