Louisiana bill to offer tax break for certain trucks, trailers dies

| 12/21/2006

 An effort to prevent trucking companies in Louisiana from buying and registering their vehicles outside the state has died.

Sponsored by Rep. Taylor Townsend, D-Natchitoches, the bill was awaiting consideration on the House floor when the Legislature adjourned Friday, Dec. 15 - two days early.

The bill - HB69 - was intended to establish a distinct set of criteria for determining eligibility for tax exemption for a subset of the trucks and trailers covered by the state's current rule.

Currently, state law exempts from sales tax trucks weighing 26,000 pounds or more and trailers if they are used at least 80 percent of the time in interstate commerce under the jurisdiction of the U.S. Department of Transportation.

Townsend's bill sought to exempt trucks weighing at least 80,000 pounds with apportioned plates through the International Registration Plan from state and local sales and use taxes. In addition, it made no mention of the term "interstate commerce" or the 80 percent use rule in current law.

Trailers that are subject to the jurisdiction of the U.S. DOT also would have qualified for the tax exemption.

The bill can be reintroduced during the regular session that opens in April 2007.