Usage tax relief for truckers now law in Kentucky

| 3/27/2003

A bill that offers relief to Kentucky truckers who had faced heavy usage taxes was signed by the governor March 18 and will become law.

According to a spokeswoman for the General Assembly, HB293 is now Chapter 124. The law contains an amendment that would exempt truckers from the tax, which can run as high as $6,000 on a tractor-trailer.

The bill was particularly important to those Kentucky truckers who base plated their rigs in other states. Recent disputes among members of the IRP, a reciprocal agreement between states, were forcing those drivers to get base plated in their home states.

While some states imposed a sales tax on trucks, Kentucky’s was a usage tax, meaning that instead of paying only on the sale or purchase of a truck, the tax was imposed on the current value of any truck moving into the state. Some Kentucky truckers would have faced tax bills in the thousands.

Two other bills had contained the amnesty provision – HB349 and HB255. However, HB293 was favored by some in the Legislature because it called for increases in truck registration fees to make up for the revenue lost by lowering taxes. Neither of the other bills has approached passage yet.