TRALA Fighting Effort to Repeal CT Property Tax Exemption

Connecticut Governor Daniel Malloy recently released a proposed budget which includes a provision to repeal the property tax exemption for commercial trucks. The Truck Renting and Leasing Association (TRALA) has teamed up with the Motor Transport Association of Connecticut (MTAC) to fight against this proposal which would create a dramatic increase in the cost for both TRALA and MTAC members to do business in Connecticut. Governor Malloy's proposed budget would repeal the property tax exemption effective July 1, 2011.

TRALA wrote to Governor Malloy and the Co-Chairs of the Connecticut Finance, Revenue and Bonding Committee to explain the negative impacts that a repeal of the property tax exemption would have on the commercial transportation industry. In its letter TRALA explains how a property tax on commercial trucks will force TRALA members to pass those costs on to its customers, and in turn raise the cost of commercial transportation.

There are currently 27 states that have property tax exemptions for commercial trucks used in interstate commerce, including Connecticut. TRALA's letter states that repealing this exemption would put Connecticut businesses at a competitive disadvantage compared to businesses in nearby states of New York, Rhode Island, Vermont, New Jersey, and Pennsylvania.

Finally, TRALA believes that repealing this exemption will slow the introduction of new, environmentally friendly model year 2010 and newer trucks into service in Connecticut. TRALA explains the costs associated with technologies that have resulted in a 90% reduction in NOx and particulate matter emissions, as well as engines that run on ultra-low sulfur diesel, in order to comply with U.S. Environmental Protection Agency (EPA) mandates. A property tax in combination with higher costs for trucks with model year 2010 and newer engines will serve as a disincentive to purchase new, environmentally friendly trucks.