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TRALA works with Arkansas government to prevent ‘double taxation’ of its members

TRALA said it had held several educational conference calls with the DFA to let the agency know that vehicles under existing lease which had already paid taxes should be “grandfathered” in under the new law to prevent “double taxation.”

The Trucker News Services

9/30/2013

Arkansas members of the Truck Renting and Leasing Association (TRALA) will not be subject to double-taxation when a new tax law goes into effect Oct. 1, the group reports.

Following the passage of legislation that made “significant changes” to the taxation of motor vehicles in the state, the Arkansas Department of Finance and Administration (DFA) agreed with TRALA that Arkansas-based motor vehicles under existing long-term leases that already fulfilled their tax obligations shouldn’t be subject to further taxation when the new law becomes effective, the association stated in a recent bulletin.

TRALA said it had held several educational conference calls with the DFA to let the agency know that vehicles under existing lease which had already paid taxes should be “grandfathered” in under the new law to prevent “double taxation.”

Members of TRALA’s tax advisory council also worked with the DFA and sent the state agency an industry interpretation of the new tax law.

The Arkansas DFA also has confirmed two exemptions. One is that an exemption from the long-term rental tax for diesel-powered trucks used in commercial shipping operations will apply to all trucks under long-term lease, not just trucks in for-hire operations.

The other is that some heavy trucks registered under the International Registration Plan (IRP) are exempt from both the sales tax and the long-term rental tax.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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