

| Legislative Watch |
Arkansas |
OOIDA
Call to Action - Arkansas Members
February 26, 2003
Heads up, Arkansas truckers! A bill in the state Senate needs your support.
HB1030, which would cap the
sales taxes on trucks and trailers in Arkansas, appeared to be a victim
of the state's revenue shortfall. However, a compromise that would
save the bill is being crafted.
Initially, it was estimated the bill would cause a shortfall of $3 million
to $4 million a year in the state treasury. The shortfall would likely
get smaller as truckers and fleets began to move their trucks back to
Arkansas because of the lower tax rates HB1030 would create.
The Senate Committee on Revenue and Tax is scheduled to take up an amendment
to the bill that would transfer all vehicle title fees from the highway
fund to the general fund, possibly as late as Wednesday, March 5.
The amount would be roughly the same as the shortfall, $3 million, making
the measure revenue neutral.
HB1030 passed the House Jan. 29 by a vote of 84-13. But it apparently
stalled in the Senate, where a vote by the full body was recently delayed
and it was referred back to the Senate revenue and tax committee Feb.
25.
The measure would cap the sales tax on trucks bought or sold in the
state. If the bill passes, only the first $1,000 from the sale of a
truck will be taxed in the future and only the first $500 from the sale
of a trailer will be taxed.
It contained a clause that would grant a tax "amnesty" to
homebound truckers who would otherwise have to pay big bucks in back
taxes, penalties and interest for base-plating out of state. The Arkansas
attorney general issued an opinion that the amnesty was unconstitutional,
and it was removed.
It is vital that you contact the committee members and let them know
how important this bill is to you as an Arkansas trucker. For contact
information, visit www.arkleg.state.ar.us/scripts/ablr/committees/committee3a.asp?ccode=450,
or call OOIDA's membership department at 1-800-444-5791 and they'll
look it up.






