National Fleet Services Sales and Use Tax Recovery Services is sharing with all Trucking operations the formula for applying for trucking sales tax exemptions to generate much need cash for the trucking operations. Sales tax exemptions in the trucking industry vary from state to state, one may say the exemptions are inconsistent and confusing. Therefore, it is recommended that you do your research before applying for sales tax exemptions.
Most states have a three (3) or (4) year statue of limitation to claim a refund for overpaid sales and use taxes, so if you don't act proactively, with every passing month your Company is losing profits forever.
Here's the road map to applying for a trucking sales tax exemption
- Know your business operations including business locations, key vendors and annual purchasing (dollar) volume.
- Research your State's Department of Revenue or visit the website to find out whether your trucking operations will qualify for the sales tax exemption.
- Obtain required forms that are usually available for downloading from the state's website. Be sure that you obtain the correct forms and documentation after speaking with the State's Department of Revenue.
- Complete the sales tax exemption forms. Many of these forms have instructions, however not all forms have instructions, that can be incomplete or confusing. If you find that you need additional help contact National Fleet Services or the State's Department of Revenue.
- Present the completed sales tax exemption forms when making purchases of qualified vehicles. You must keep a copy of all the documentation for your file as proof of a claimed exemption should your accounting records come under a State tax audit.
National Fleet Services' Tips
- Know and understand your research of each State's sales tax exemptions procedures.
- Know the gross vehicle weight qualification varies from state to state.
- Know the mileage traveled by each vehicle.
- Know what you don't know and seek professional advice