Sales tax on truck purchase

ok stan

Seasoned Expediter
I'm buying a used truck and just found out the Arkansas sales tax is 6% !! That would be 5,000 bucks for uncle Sam to squander...is there any way around this, or do the kids skip Christmas again this year ??:-(
 

arrbsthw

Expert Expediter
Probably the only way is to have your own common carrier
authority. You are exempt from taxes if your vehicle crosses
state line. At least that's the rule in GA.
 

theoldprof

Veteran Expediter
If you are trading in a car or truck, the tax would be only on the difference you pay. That is the way it is in Indiana.
:+ :+
 

davekc

Senior Moderator
Staff member
Fleet Owner
DD has it right. Have a copy of your lease at the time you get your plates and title. In that case you would be exempt. Some states are just alittle different so I would call so you have all the necessary documentation.






Davekc
owner
23 years
PantherII
EO moderator
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
Don't know about Mass., but in MO the owner of a truck leased to an interstate carrier pays no sales tax if registered at 18,000 or over. I learned this from my FedEx Custom Critical recruiter. No reason for FDX to be concerned if you already have a lease.

The purpose in MO is that you will be paying plenty in road use taxes so sales tax is redundant.
 

LDB

Veteran Expediter
Retired Expediter
You need to talk to the DOT in your state. In Texas, and as I understand it most everywhere, a truck plated apportioned does not pay state sales tax. It could be different in your state however the odds are as long as you get apportioned plates you won't owe sales tax. Call your state DOT though rather than speculating or wondering.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 

ok stan

Seasoned Expediter
Thanks guys for your comments, but it's looking bad for the kids this year. The Arkansas DOMV just told me that I owe tax on the full amount because it's considered less than a tractor and will gross out less than 56k lbs. That throws me into a bracket with all those yuppies that are buying new Lexus's for their kids. If I were buying a tractor I would only owe tax on the first $9,000 of the purchase price. Along with county and local tax, and tags for 48 states..it comes to $4300 on a 70,000 truck....ouch....I gotta go fishing to ease the pain !


Banjo Stan
 

nightcreacher

Veteran Expediter
i hwve never paid sales tax on a truck,as long as you have a lease,you just use the icc authority number or now dot number,deale will skip the tax
 

arrbsthw

Expert Expediter
Did u have to complete a tax exempt form? I didn't know you
could use someone else's number if you have a lease. How does
that exactly work..so I will know when we get ready to buy
another truck?
 

nightcreacher

Veteran Expediter
when your leased to a company,you fall into pubic utylities,also interstate commerce,you use their number,of course you have to be leased to them 1st
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Arkansas is a interesting thing, when it comes to trucking. Maybe, slick willie, had something to do with it.
 

dhalltoyo

Veteran Expediter
Picking up my new cargo van on Monday. :D

In Ohio you can get a TAX EXEMPT FORM from the Title Bureau.

You fill out the portion that requires an ICC/MC number as a Motor Vehicle For Hire and the dealer completes a portion. It makes the process easier if you have the form in hand when you go to get the truck. Unfortunately, most auto dealers, that also sell cargo vans, know very little about ICC/MC tax exemption.
 

Olko

Veteran Expediter
Charter Member
Retired Expediter
Howdy

When we bought our expediter truck and were living in Texas we didn't have to pay any sales tax. Here if a vehicle is business owned, versus privately owned it is subject tp a personal use tax. We found that out when we moved here from CO and had a leased Pick Up which was considered a business owned vehicle because the title was in the leasing companies name.

To the quote of Patrick Henry....AMEN

Former "D" unit Driver and Owner Operator with my wife WendyCal.
Possible future Driver of a "C" or "D" unit with the same wife.
 
S

sucbadriver

Guest
When i bought another tractor in Arkansas the sales tax tops out at $500.00
 
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