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 FleetLegal Solutions
 104-B Brothers Blvd.
 Red Oak, TX 75154
 Tel: 972-576-2629
 Fax: 972-576-2761

Trucking News


March 15, 2004
SD Committee Says No More Intrastate Trucker Tax

According to a story reported by the Rapid City Journal, the SD House Taxation Committee voted 14-1 for HB1180, which would eliminate the controversial 4 percent state tax on cargo picked up in South Dakota and delivered within state borders. The tax doesn't apply to loads coming from other states or going there.

"The truck tax is unfair, and it needs to be removed," the bill's sponsor, Rep. Larry Rhoden, R-Union Center, said.

Democrats have steadfastly tried for years to repeal the tax, which was passed in 1995 when Republican legislators said it was needed to help provide a 30 percent reduction in property taxes for homeowners and farmers.

Trucking industry officials have said that the tax leaves them at a competitive disadvantage because they are forced to charge more than out-of-state firms. They said some trucking companies from nearby states haul loads within South Dakota but don't pay the tax because they don't know about it.


IL House Wants to Roll Back Trucking Fees

The Illinois House votes 90-7 to roll back about $140 million in tax and fee hikes on trucking companies. House Bill 412 now goes to the Senate for debate. This is the first step in reducing Gov. Rod Blagojevich's tax and fee hikes that were approved last spring as a way to reduce the State's $5 billion budget deficit.

Legislators, with the support of Gov. Blagojevich reformed the tax treatment of the trucking industry last year. Effective July 1, 2003, the rolling stock exemption on new truck purchases was eliminated and replaced by the Copmmercial Distibution Fee which increased IL registration fees on all commercial vehicles greater than 8,000 pounds by 36 percent.

Tax exemptions on Repairs were also adjusted to apply only to repair parts installed on vehicles that travel more than 50 percent outside of the state.

The Associated Press reports that Gov. Blagojevich's office is opposed to a rollback of the taxes.