Page 34 - ATR 2 2013

for the Arkansas Trucking Association Governor Mike Beebe had also vowed riers register with the International
Self-Insurers’ Fund, helped author the two years ago to support its repeal since Registration Plan, or IRP, and the
legislation. “This law gives owner-oper- it had no offsetting revenue. increase was about 15 percent of the
ators the freedom to be independent, “We really wanted to make sure our percent or total miles each truck trav-
small business owners while affording trucking companies kept that exemp- eled in Arkansas.
motor carriers the statutory protection,” tion,” said Kidd. “There are more than The legislation also sets aside $2
said Carter. “In addition and most sig- 35 states that offer such an exemption million per year to improve the safety of
nificantly, it gives owner-operators the and the industry more than pays its the commercial truck industry through
freedom to choose the same workers’ share of other types of taxes as it is.” cooperative public private programs that
compensation program that protects the ATA met with Arkansas Highway focus on a variety of issues.
employees of the motor carrier, without Department officials before the legis- “For the first time ever, the indus-
giving up their small business status. lative session to find ways to replace try and our state transportation agency
I know of no other law like this any- the lost revenue from the exemption can actually work together to improve
where.” and to also address commercial truck commercial truck safety and to improve
safety issues. Those meetings culmi- the efficient movement of freight in
SaLES Tax ExEmPTIoN SEcUrEd nated when State Senator Keith Ingram Arkansas,” said Kidd.
Arkansas trucking company own- (D-West Memphis) introduced a bill
ers can rest easy knowing the sales tax called “The Commercial Truck Safety INdEmNIfIcaTIoN faILS
exemption on new and used trucks and and Education Fund Act.” Less successful was a bill that
semitrailers implemented in July 2012 But there were some wrinkles to would have prevented agreements
will remain on the books. overcome. First, the legislation shifted between shippers and trucking com-
There was some doubt the exemp- the lost sales tax revenue off the backs panies in which the motor carrier
tion would stand when the legislative of small Arkansas truckers to all motor indemnifies the shipper from negligent
session convened and State Senator Bill carriers that register apportioned tags acts that cause damage or injury to
Sample (R-Hot Springs) introduced a — those that operate outside Arkansas the trucking company’s property or
bill to repeal it. Democratic Arkansas or travel through the state. Those car- employees. Introduced by State Senator

34 arkansas Trucking rePorT | issue 2 2013