Tax Exempt Truckers
By Suzanne Roquemore
Trucking and taxes go hand-in-hand. But trucking companies and owner operators in trucking who have an ICC number or who are leased to a carrier that has an ICC number can save on sales tax in some states.
Some states, like Oregon, Montana and New Hampshire, have no sales tax at all for any retail purchases.
Other states, like Ohio, Indiana, Illinois and Pennsylvania, will provide a form to fill out and sign. If a trucking owner operator or the trucking company he is leased to have an ICC number, the owner operator (or trucking company) does not have to pay sales tax in those states for the items bought for their trucks.
Good luck trying to get out of paying sales tax at Wal-Mart, but at the truck stop shop, they’ll know what you’re talking about. Consider that if you are buying a full set of drives you may be paying retail prices in the $3,000 range. At 6% sales tax, you will save $180. That is certainly worth the time to fill out a tax form.
Most retailers in the trucking industry won’t suggest to owner operators that they may be tax exempt. The owner operator will have to ask if the shop or supply store will honor that provision. Tax exemption forms create more paperwork for the retailers, so they tend to keep the uninformed truckers in the dark about it.
An owner operator who wants to save on sales tax would be wise to buy his supplies in one of these states. Whatever state you are in, if you get repairs, maintenance or supplies, always ask if they have a tax exempt form you can fill out. They may or they may not, but it is certainly worth enduring an occasional blank stare in order to double check.
States that should allow tax exempt status in addition to those already mentioned are Kansas, Missouri, and Washington. PDFs for many state sales tax exemption forms can be found online.
CoopsAreOpen.com is the only comprehensive online resource for over 1100 truck weigh stations and scales as well as state DOT weight regulations and policies. Knowledge of the varying policies and the ability to manage or avoid most weigh stations can save truckers thousands of dollars in ticket fines. For further information, contact Suzanne at information@coopsareopen.com or view Truck Weigh Station, Scales and State DOT Information at http://www.CoopsAreOpen.com
© 2008, Allen Smith. All rights reserved.
I need to know if as an owner/operator leased to a carrier am I required by law to submit to them a monthly maintenance report and receipts?
Not that I’m aware of? Unless it’s part of the contract you signed. I would ask an attorney.
http://www.truckersjusticecenter.com
When leased to a carrier are mandatory uncompensated safety meetings legal ?
I am leased to company with an ICC number. I was recently told that I will have to pay PA state sales tax on parts billed under the company that I am leased to or they (they the company) will charge me the tax. Please clarify. I live in PA and the company is in PA.
In Florida am I able to register a Canadian Truck/Driver that would be leased to a Florida company?
Thank you in advance! With regards to the ICC number and tax exempt status. Does this tax exempt apply to the purchase or settlement on a total loss? You guy are the best in the industry!
Thanks again!
Rich Reiss
The article was written in 2008, a lot has changed since then. I advise you ask your accountant that question. If you don’t have one, please send me an email. info@truthabouttrucking.com
Do I need to pay sales tax in Arizona when buying a CMV and am leased to a carrier with an ICC MC number?
In January 2020 I bought a used truck in Texas and leased on with a company in Nebraska. The truck is registered in NE with a NE license plate. I live in Florida. I got a letter from the dealership stating that because of changes in Texas law they must now collect sales tax from customers who are not tax-exempt. I am not a tax-exempt company. I have not owned a truck for about ten years prior to this purchase. Do I owe sales tax/if so, to whom is it due?