TRALA-Supported Sales Tax Exemption and Rental Tax Legislation Passed by Louisiana Legislature
- By: Shannon Davison
- On: 03/15/2016 16:31:29
- In: Legislative Bulletins
TRALA and its allies were successful on two fronts during the past week in Louisiana as it wrapped up its special legislative session.
TRALA and its allies were successful on two fronts during the past week in Louisiana as it wrapped up its special legislative session. An attempt to eliminate the long-held exemption on sales tax for Interstate trucks, as well as an attempt to raise revenue through a rental tax that could have impacted trucks were defeated or altered in ways that TRALA had sought.
TRALA had lobbied with the help of the Louisiana Motor Transport Association (LMTA) to retain the sales tax exemption for Interstate trucks which is critical for TRALA members who operate in the State. House Bills 61 and 62 were passed with bipartisan support in the Louisiana Legislature on March 8 and sent to Governor John Bel Edwards (D) who is expected to sign them into law within days. These bills ensure that the Interstate truck sales tax exemption will continue to be in place.
Upon the adjournment of the special session on March 9, Governor Edwards signed House Bill 39 into law. This bill contained a TRALA-supported amendment introduced by industry-ally Senator Daniel Martiny (R-District 10).
In an effort to close a significant budget gap, the state of Louisiana reinstituted a rental tax of 2.5% and an additional 0.5% local tax on automobiles carrying 9 or fewer passengers which are rented or leased for less than 30 days. While not targeting trucks, TRALA became concerned that this tax could be misinterpreted to include consumer and commercial rental trucks. The TRALA- supported amendment clearly removes trucks altogether by stating that the only rental vehicles that are impacted by this law would be those "whose primary purpose is not the transport of freight or goods."
"Certainly both of these victories would not have been made possible had it not been for LMTA and Cathy Gautreaux's leadership," said Jake Jacoby, TRALA President and CEO. "TRALA is very fortunate to have such a great partner in Louisiana."
If you have any questions regarding either the rental tax bill or the sales tax exemption for Interstate trucks, please contact Peter Einisman at PeterEinisman@trala.org or call (703) 299-9120.