Truckers Must Wait for Tax Break

A 25% tax cut in California’s vehicle license fee was supposed to take effect this year, but most truckers won’t be seeing any savings anytime soon.

The tax reductions, part of a large tax cut signed last year by Gov. Pete Wilson, went into effect Jan. 1, 1999 (TT, 9-21-98, p. 18). They are scheduled to reduce the VLF by as much as 67 percent by the year 2003, depending upon the state’s future economy.

Unfortunately, because of the way the legislation was written, most truckers will have to wait a year to receive their tax cut. The law only applies to registrations that expire on or after January 1, 1999. "However, most trucks and all interstate trucks that are a member of the Interstate Registration Plan had an expiration date of Dec. 31, 1998, so they didn’t make the cut," said Warren Hoemann, vice president of the California Trucking Association. The truckers will get the savings when they renew their registrations next December, he said.

Mr. Hoemann said CTA will seek to get legislation passed in the California Assembly this year that refunds truckers who missed out on the tax break by one day because of the cut-off date.