Trucking officials have voiced concerns that Massachusetts suffers an industry decline because neighboring states offer reduced tax liability. The Trucking Association of Massachusetts agrees with a state lawmaker that the so-called “rolling stock” tax needs to be eliminated.
Rep. Bradley Jones Jr. recently filed a bill that would exempt interstate trucking companies from paying onerous fees for equipment to transport goods and materials to American communities.
“We are currently the only New England state, and one of just 13 nationwide, that provides no sales tax exemption for interstate for-hire trucking firms,” Rep Jones reportedly said. “(House Bill) 2959 would codify in statute the commonwealth’s pre-1996 tax policies on rolling stock and would help make Massachusetts more competitive compared to our neighboring states.”
The Massachusetts House Minority Leader indicated the state once offered a similar exemption. A letter to the state’s Department of Revenue in 1980 reportedly confirms the exemption was repealed in 1996. In 2006, the New England state began enforcing its rolling stock tax, and the results have been less than enviable. Along with residents incurring the passed-along fees, trucking outfits looked for greener pastures.
The Trucking Association of Massachusetts contends that 37 surrounding states do not levy such penalties, and the presence of a rolling stock tax has incentivized leaving. The organization also argues that high taxation focused on the freight hauling industry prompts upstart trucking companies to establish headquarters elsewhere.
“A recent study by Northeastern University’s Dukakis Center has shown that the elimination of the rolling stock tax will potentially produce an additional $15.9 million in additional taxes created by the growth of the for-hire portion of the trucking industry,” Trucking Association of Massachusetts reports. “According to the same study, when factoring in private fleets, this benefit could double. This initiative will also incentivize trucking companies and companies with truck fleets to use newer, safer, and more environmentally friendly trucks in the Commonwealth — whereas the current policy discourages this.”
Trucking outfits in Massachusetts reportedly pay a 6.25-percent tax on vehicle purchases and annual use fees as well. When freight carriers purchase new Class 8 commercial motor vehicles, that tax can cost them upwards of $13,000. Adding insult to injury, Massachusetts already charges truck highway tolls and licensing fees, among others.
“Massachusetts’ current tax policy will simply lead to higher costs for Massachusetts residents and businesses while driving economic opportunity to neighboring states. Various truck companies, who may be domiciled in Massachusetts or have repair facilities in Massachusetts, are now seeking to locate them outside of the state,” the Association reportedly stated.
Rep. Jones’ bill remains on the House floor, and the legislative session runs through July 31. He anticipates the bill will come out of committee with a favorable review and could be brought to a vote before the close.
Sources: ttnews.com, masstrucking.org
cudos to rep Jones. Lets not forget Ct will be starting the HUT tax for trucks next year. This all effects New England freight cost. On The up side PA supreme court has put the bridge tolling issue on hold pending a hearing. The answer is to vote for guys like Rep Jones. If you live in PA in the 8th legislative district, vote for Jim Bognet in November. Get Cartwright the hell out of there, that guy made a living making trucks pay and now he is doing it in Washington. Keep up the good work Rep Jones
I agree. Cartwright is a useless. All the NE states have ridiculous high taxes that supposedly are for roads and bridges yet they have the worst roads and bridges. I personally love Rhode Islands truck only tolling, another brilliant idea from a useless politician that makes it sound like he’s gonna make truckers fix their roads when it only gets passed to his constituents.
I didn’t know Massachusetts had any lawmakers with any common sense.
Seriously,those people are nuts.