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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.