Where Are You Buying Your Next Truck?

Differences between federal and state legislation have been causing friction in the trucking industry for decades. Sometimes it's a difference in break times and driving restrictions, while other restrictions impact which road systems can be used for certain loads; regardless of the specific issue, the impact is often increased costs for truck drivers and carriers along the line. But new legislation in Oklahoma will directly cost truck drivers looking to replace their current truck or add to their fleet.

HB 2433, legislation that amended pre-existing tax exemptions, removed the exemption for the purchase of semi-trucks across the state of Oklahoma. This means truck purchases will have an additional 1.25 percent tax, leading to at least a 4.5 percent state tax on new and used vehicles. While this leads to a short-term gain of $123 million for the state, according to local news reports, the long-term effect could mean trucking centers move their operations and register trucks in different states.

Leases that will last twelve months or more remain exempted, provided the owner has paid the excise tax, which is currently 3.25 percent. The same exemption will continue to apply to aircraft leases and some electric vehicles, which could further transform both the trucking industry and truck purchasing in the state.

Taxes of even a small percentage could have a large impact on your business, and changes in operation centers and buying trends can do even more. Go to Carolina International for more financial and industry news so you can make up-to-date forecasts on, and the best decisions for, your business.