Page 15 - ATR 3 2013

Tale of Two cities

ATA helps secure legislative victories in Little Rock and Washington DC

By steve Brawner lion per year) with proceeds spent on

Contributing Writer the state’s major freight corridors.
The legislature voted to grant the
The Arkansas Trucking Association full exemption but stalled on the diesel
(ATA) batted two for three in the last tax issue, voting instead to refer the
Arkansas legislative session and is proposal to a statewide vote. And in a
expanding its influence in Washington, last minute maneuver, the legislators
D.C. Those were the takeaways from voted to take the additional $4 million
Lane Kidd, ATA president, in his govern- that the exemption would cost the state
mental affairs report to the membership out of the state highway department’s
at the organization’s recent business administrative budget, a measure
conference in Little Rock. that neither the ATA nor the highway
department supported.
Soon after the legislature adjourned
IN lITTle Rock in 2011, Arkansas Governor Mike Beebe
SaleS Tax exempTIoN asked ATA to conduct a statewide sur-
Kidd told executives that a major vey to gauge public support for a diesel
success for their companies from this tax increase. The survey subsequently
year’s state legislative session is the pas- showed little or no support. In a meet-
sage of Act 1176, a new law that will ing with Beebe, it was agreed that ATA
do two things – keep a full sales tax would ask that the diesel tax not be
exemption on trucks and semi-trailers placed on a ballot and full support be
in place while creating an ongoing $2 given to the renewal of a 10-year inter-
million fund each year for coopera- state highway bond program, which ATA
tive programs on ways to research and subsequently obliged in doing.
improve commercial truck safety and However, Beebe announced he could continue to enjoy a full sales tax
freight distribution in the state. would try to repeal the sales tax exemp- exemption on equipment, (now a total
The ATA’s efforts to ensure a sales tion on the trucking industry since that savings of approximately $23 million
tax exemption actually began in 2003, was part of the original legislative pack- per year) by finding a way to replace the
Kidd explained, when ATA lobbied the age. After the full exemption triggered $4 million that the highway department
legislature to pass a partial exemption in July 2012, the ATA Board of Directors was losing each year to pay for the full
on the purchase of new and used heavy unanimously voted to oppose any effort exemption.
trucks and semitrailers. The legislature to repeal the exemption. An agreement was reached whereby
passed it and the partial exemption ATA would support trucking companies
began saving trucking companies an THe agReemeNT engaged in interstate commerce and
estimated $20 million per year. As the 2013 legislative session that register equipment through the
In 2011, the ATA proposed a two approached, Kidd said the ATA met with International Registration Plan, or IRP,
pronged legislative package – remove the highway department officials to see if to pay an additional 15 percent on their
cap and grant a full sales tax exemption an agreement could be forged whereby miles in Arkansas, with the proceeds
(which would cost another $4 million the two could work together with the from the increase used to offset the $4
per year) coupled with support for a five legislature. million.
cent per gallon increase in the diesel tax The objectives were simple:
(which would generate about $35 mil- Arkansas trucking company owners 

arkansas Trucking reporT | issue 3 2013 15