An effort underway at the Illinois statehouse would do away with a tax break available to truckers.
Rep. Jack Franks, D-Marengo, is the sponsor of a lengthy bill to address the state’s annual budget. One provision in the 941-page bill would repeal the existing “rolling stock” sales tax exemption for qualified purchases, such as trucks, trailers and tires.
The exemption would end on June 30, 2016.
The Owner-Operator Independent Drivers Association opposes the effort. The truckers group has about 6,700 members who reside in Illinois.
Mike Matousek, OOIDA director of State Legislative Affairs, has communicated the Association’s concerns to leading lawmakers in both chambers of the statehouse.
Matousek points out that small-business truckers are already subject to a number of taxes that include Heavy Vehicle Use Tax, International Fuel Tax Agreement, Unified Carrier Registration, 12 percent federal excise tax on the purchase of new tractors and trailers, International Registration Plan, and a federal excise tax on the purchase of new tires.
He also points out that the majority of taxes that commercial trucks pay do not apply to personal vehicles.
“The Illinois rolling stock sales tax exemption is perhaps the largest, and only, economic incentive for owner-operators to purchase new equipment,” he said. “We believe repealing the exemption is bad for truckers, truck and part manufacturers, truck retailers, maintenance providers, and other trucking-related businesses.”
The bill, HB4300, awaits consideration in the House.
To view other legislative activities of interest for Illinois, click here.
Copyright © OOIDA