By Keith Goble, Land Line state legislative editor
A new law slated to take effect in about one week is touted as a way to create greater parity for Colorado trucking companies with surrounding states.
To encourage businesses to locate and expand in designated economically distressed areas of the state, lawmakers approved a bill during the 2010 regular session to allow the trucking industry to qualify for enterprise-zones and sales-tax credits. As of July 1, the incentives finally take effect.
The incentives provide a prorated sales tax refund for companies that are based on the number of vehicle-miles driven in Colorado. Also, it offers a 1.5 percent investment tax credit for purchases of commercial trucks, truck tractors, tractors or semi-trailers, as well as associated parts in an enterprise zone.
To pay for the tax incentives, fines for “egregiously overweight trucks” will be increased to a comparable level with surrounding states.
Owner-operator and OOIDA Life Member Jack McComb of Littleton, CO, said the charge targets the worst of the worst offenders. In addition, he welcomes the benefit tied in for local trucking operations.
“Guys running legal who are residents of Colorado, and buy equipment here, they’re going to get a substantial break on sales tax,” he said.
The new law clarifies that vehicles registered in Colorado, then later registered in another state before returning to Colorado for a subsequent registration are not on the hook for taxes and fees due while it was registered outside the state.
For more information on the program and tax credit application, click here.
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