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News iN brief, the highway department budget, not on-board recorders (EOBRs) in all
Continued from page 13 less,” said Kidd. “We can easily recoup commercial trucks. The U.S. House
the $4 million the exemption will cost of Representatives’ bill also references
chased in 2012, as they were allowed to and generate even more money with EOBRs. But language inserted late in
do during 2011. President Obama also slight adjustments in a few fees or taxes. the process favored a German company,
favors the tax break. Trucking companies currently pay about Continental AG, to give it a competi-
For trucking fleets, that bonus $500 million each year in taxes and fees tive advantage over U.S. companies. The
depreciation could be used not only for to improve state, county and city roads language would permit Continental to
buying trucks and trailers but also for in Arkansas.” market a device that would continue to
purchases ranging from new computers The benefits of a sales tax exemp- allow abuses in complying with hours-
to dispatcher equipment. tion on equipment benefit small of-service rules.
Arkansas trucking firms. Otherwise, Essentially, the objectionable lan-
Tax ExEmpTIoN HElpS Small these companies are at a competitive guage would allow Continental’s device
TrUCkINg CompaNIES disadvantage to larger Arkansas fleets to retain the data, but not transmit the
The Arkansas Trucking Association that buy equipment in tax exempt states information to another location via
(ATA) Board of Directors has directed where they have established nexus to satellite or cellular networks. The device
the association to try and keep the qualify for the exemption. would be able to print the information
industry’s full sales tax exemption The sales-tax exemption will take at the roadside or the data could be
in the next legislative session, if any effect July 1 after it was approved by the downloaded from the device to a laptop
attempt is made to repeal it. legislature in 2011. with a USB cord.
“Thirty eight states exempt the The problem with this setup is
purchase price of equipment if used Eobr laNgUagE WoUld favor obvious—trucking companies would
in interstate commerce and Arkansas gErmaN CompaNy have no way to verify the driver’s actual
should be no different,” said Lane Kidd, The U.S. Senate has already passed on-duty status at any given time since
ATA president. its transportation bill that includes the data would only be within the actu-
“We support paying more into a requirement to install electronic al device on the truck.

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3/14/12 4:25 PM
14 TRN_ArkTrcknReport_0312.indd 1 ArkAnSAS trucking report | issue 2 2012