

| Legislative Watch |
Arkansas |
3/24/03-HB1030, which would cap the sales tax on trucks in Arkansas, was signed into law by Gov. Mike Huckabee March 21. The law, which is now called Act 551, limits the state's sales tax to the first $9,150 of the value of a tractor and to the first $1,000 of the value of a trailer. Rep. Don House, the bill's primary sponsor, said that would make the tax on a trailer $51.25, and the maximum tax on a tractor $469.
3/19/03-A bill to aid homebound
Arkansas truckers has passed yet another test.
HB1030, which would cap the sales tax on trucks in Arkansas, has been
approved by the House Committee on Revenue and Taxation.
The bill previously passed the House, but was amended in the Senate,
requiring another approval in the lower chamber. The committee approval
on March 18 sends the bill to the full House, which, if it approves
it, would send it to the governor.
The newest version of the bill would charge the state's sales
tax on the first $9,150 of the value of a tractor and on the first
$1,000 of the value of a trailer. The tax on a trailer would be $51.25,
and the maximum tax on a tractor $469.
3/13/03-The Arkansas Senate March
13 unanimously approved HB1030, which would cap the sales tax on trucks
in Arkansas.
Immediately after the 35-0 vote, the bill was moved back to the House,
which already approved it once, so that chamber could give its OK
to changes in the bill. Rep. Don House, D-Walnut Ridge, the bill's
chief sponsor, said House approval is essentially a given.
The new version would charge the state's sales tax on the first
$9,150 of the value of a tractor and on the first $1,000 of the value
of a trailer. House said that would make the tax on a trailer $51.25,
and the maximum tax on a tractor $469.
The new version does not address the issue of Arkansas truckers who
have been base plated in Oklahoma. The state's Department of
Finance and Administration has indicated it will collect back taxes
on truckers who return to Arkansas if they purchased their trucks
in the past three years. Those truckers could face tax bills of up
to $6,000.
The bill had contained an amnesty provision, allowing those truckers
to return to the state without paying back taxes. The Arkansas attorney
general issued an opinion that the amnesty was unconstitutional, and
it was removed.
2/26/03-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 it 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.
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.
2/10/03-Legislation that would
help truckers who are base-plated out-of-state has passed the House.
HB1030 would cap the sales taxes on trucks and trailers in Arkansas.
The bill contained an amnesty provision, allowing Arkansas truckers
who base plated elsewhere in the past to return to the state without
paying back taxes.
The Arkansas attorney general issued an opinion that the amnesty was
unconstitutional, and it was removed.
The bill is now in the Senate Revenue and Tax Committee. For bill
status, call (501) 682-7771.
1/20/03-HB1030 may relieve homebound
truckers who were previously base-plated out of state. Rep. Don House's
(D-Walnut Ridge) legislation would cap the sales tax at $1,000 for
a truck and $500 for a trailer.
The bill is in the House revenue and taxation committee. For bill
status, call the House at (501) 682-7771.
1/6/03-On Dec. 20, Rep. Don House
(D-Walnut Ridge) pre-filed House Bill 1030, "emergency"
legislation that would exempt from the state sales and use tax the
gross receipts in excess of $1,000 derived from the sale of a truck
tractor and in excess of $500 from the sale of a semi-trailer. The
proposal is co-sponsored by Johnnie Bolin (D-Crossett). The two lawmakers
call it a compromise that will help hundreds of Arkansas truckers
stop baseplating in other states (primarily Oklahoma) and begin buying
tags in their home state without incurring unreasonable back taxes,
penalties and interest.
Arkansas truckers, you should contact your elected representatives
and urge them to support this critical legislation. The Arkansas Department
of Finance and Administration has indicated its intent to collect
gross receipts and compensating use tax on trucking equipment purchased
for at least the past three years by Arkansas trucking businesses
that used third party registration agents in Oklahoma to register
their equipment. The collection of this money will have a devastating
effect on the trucking business in Arkansas, forcing many truckers
out of business, into bankruptcy or to relocate outside Arkansas.
Other sponsors include Rep. Agee, Bolin, biggs, Borhauer, Clemons,
Cowling, Dickinson, Eason, Fite, Green, Hutchinson, Jackson, Jones,
Mack, Mathis, Ormond, L.Prater, Rankin, Seawel, Sullivan, Thomas,
J. Wood. Senate sponsors include Sen. Holt, Whitaker and Womack. The
Arkansas General Assembly's session convenes Jan. 13.






