Sales Tax Exemption
Truckers are overtaxed and we simply know more about the taxation of trucking than anyone. States have forgotten that everything goes on a truck and without trucks we have no food, no clothing, and none of the things we enjoy that provide us the comforts of life.
Many states have statutory sales tax exemptions available to carriers. These exemptions may include the purchase/lease of tractors and trailers, related repair parts, and other tangible personal property that becomes part of the tractor or trailer. Approximately 30 states provide a reduced tax rate, partial exemption or full exemption on rolling stock and/or repair parts.
For example, if a carrier purchases a tractor valued at $95,000 without the proper planning, the carrier may pay up to $8,500 in sales tax on the tractor purchase and pay an additional $2,800 in sales tax on repair parts. Many carriers may be aware of these types of exemptions and fail to maximize the tax savings, leaving substantial dollars on the table due to improper application for an exemption.
A review conducted by National Fleet Services of your tractor, trailer and repair part purchases will verify that your motor carrier is identifying and properly qualifying for exempt purchases.