3/3/03-HB1130, a bill in the General Assembly that would exempt commercial vehicles from the state sales tax, has been defeated in the House.
In a 53-50 vote Feb. 27, the House killed the measure, which was introduced by Rep. Jeff Gillespie, D-Danville. Even though it received a majority of votes, the Arkansas Constitution requires it and other bills regarding tax and fee increases to pass by a three-quarters vote.
However, Rep. Denny Sumpter, D-West Memphis, has given notice he will try to have the vote reconsidered.
The bill would have exempted commercial vehicles from the state sales tax, but they would still have been subject to city and county sales taxes, which are capped. The bill would have also increased the registration fee on tractor-trailers and other commercial vehicles.

2/12/03-HB1130 would exempt Arkansas truckers' commercial vehicles from the state sales tax. The vehicles would still be subject to city and county sales taxes.
The bill would also increase the registration fee on tractor-trailers and other commercial vehicles. The current registration fee for a tractor-trailer is $1,350, according to Rep. Jeff Gillespie (D-Danville), the bill's primary sponsor; that fee would increase by $270.
The measure was passed by the House Revenue and Tax Committee, but has not yet been scheduled for action on the House floor. Because of Arkansas' laws regarding tax and fee increases, the measure will have to pass by a three-quarters vote.
“I didn't want to bring it to a vote until I knew I had the votes” Gillespie told Land Line. “I only have three flat turndowns, so I think if I ran it, it would pass, but I want to make sure.”
Up till now, the state sales tax applied to the entire purchase price of a truck - as opposed to city and county sales taxes, which apply to only part of the purchase price - often leaving truckers with bills in the thousands. Few states charge sales tax on tractor-trailers at that level.
In part because of the tax, only 8 percent of the more than 83,000 large trucks whose owners are residents of Arkansas register their vehicles in that state. For semi-trailers, the figure is even lower - 2 percent. The trucking industry employs more than 110,000 people in the state.
For bill status, call (501) 682-7771.