Days numbered for Connecticut truck, trailer sales tax exemption?

By Keith Goble, Land Line state legislative editor | Thursday, April 30, 2015

An effort underway at the Connecticut statehouse would eliminate a sales tax break for truck drivers.

The Finance, Revenue and Bonding Committee could soon take up for consideration an effort to repeal an existing sales tax exemption for commercial trucks and trailers purchased in the state.

The Owner-Operator Independent Drivers Association says that repealing the provision would be bad for professional drivers, manufacturers, and many other trucking-related businesses.

Mike Matousek, OOIDA director of state legislative affairs, said small-business truck drivers are already subject to a number of taxes; the Heavy Vehicle Use Tax, International Fuel Tax Agreement, Unified Carrier Registration, International Registration Plan, the 12 percent federal excise tax on the purchase of new tractors and trailers, and a federal excise tax on the purchase of new tires, just to name a few.

He said it is also worth pointing out that the majority of taxes that commercial trucks pay – including the taxes mentioned – do not apply to personal vehicles.

“The Connecticut sales tax exemption on the purchase of a new tractor and/or trailer is perhaps the largest – and only – economic incentive for owner-operators to purchase new equipment,” Matousek said. “Repealing the exemption is bad for truckers, truck and part manufacturers, truck retailers, and many other trucking-related businesses.

“It is also likely that overall tax revenue in Connecticut might actually decrease as new truck sales will also likely decrease.”

OOIDA has communicated the concerns of professional drivers to committee members.

To view other legislative activities of interest for Connecticut, click here.

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