Trucking Companies Lobby Against Tax

January 24, 2003
Posted at: 3:25 p.m.

LITTLE ROCK, Ark. -- A legislative committee was told by trucking companies that they would have to leave the state if the law on sales taxes for big rigs is not changed.

Industry officials say most Arkansas-based trucking companies legally register an estimated 90,000 trucks and trailers in surrounding states because Arkansas is one of seven states that collects sales taxes on the equipment.

Much of the equipment is registered in Oklahoma, one of 32 states that does not collect a sales tax on trucks and semi-trailers. But new Oklahoma regulations require companies that register those vehicles in that state to set up operations there by March first.

To move those registrations to Arkansas, companies would have to pay three years' worth of sales taxes. Trucking representatives yesterday told House Revenue and Taxation Committee on Thursday that businesses could move out of state as the only way to afford to stay in business.

The committee delayed action on legislation to cap the sales and use taxes but may take up the bill again Tuesday.