A proposed change in tax methodology for motor carriers from a mileage-based to a value-based system was rejected by a committee of the Multistate Tax Commission after strong opposition from the American Trucking Associations. The rejection preserves the longstanding mileage-based tax system, seen as more equitable and less burdensome for the trucking industry. PRIMO provides critical insights into regulatory changes, helping clients navigate complex compliance landscapes and avoid unexpected financial strains.

• Proposal Rejected: The Multistate Tax Commission rejected a proposal to change the tax method for motor carriers from a mileage-based to a value-of-goods-based system.
• ATA’s Opposition: The American Trucking Associations (ATA) strongly opposed the proposal, arguing it would significantly increase taxes for most truckers.
• Complex Industry: The trucking industry is complex, with many tax, regulatory, safety, and cost considerations, making it a challenging sector for tax method changes.
• Uniformity Principle: ATA emphasized that the current mileage-based tax method has served the industry well for over half a century, promoting uniformity and reducing disputes.

Reference: ttnews.com