Miss. Ends Sales Tax Bite on Truck Sellers

Buying a tractor-trailer in Mississippi this summer will be bit less expensive thanks to a new law that reduces the tax on trucks bought for cross-country travel.

The law, signed by Gov. Kirk Fordice on March 22, removes the 3% sales tax on tractor-trailers purchased for interstate use and replaces it with a 3% use tax calculated by the number of miles the equipment will be used in Mississippi.

The change will benefit tractor-trailer dealers the most because many trucking companies were avoiding the tax by buying their equipment out of state.

"It’s not an earth-shattering piece of legislation," said Dean Cotten, president of the Mississippi Trucking Association. "Primarily, it will help truck tractor and trailer dealers, but it’s a good legislation and we’re glad to get it."

Lester Herrington, deputy state tax commissioner, said the tax is often paid by "the little guys who don’t have terminals scattered around the country."

The new tax system, which takes effect July 1, is expected to cost the state about $600,000 less in sales tax collections each year. But additional revenue generated for Mississippi businesses should help offset that, Herrington said.

For the full story, see the April 12 print edition of Transport Topics. Subscribe today.