Truck dealers in Mississippi should benefit from a new law that reduces the tax on trucks bought for interstate commerce.
The 3% sales tax on a $100,000 truck sometimes puts customers in sticker shock. But many larger companies don't pay the 3% sales tax, because they have an office outside Mississippi and can buy trucks there. That means the tax mostly affects smaller trucking operations.
The new law eliminates the across-the-board sales tax. Instead, people buying a truck will have to pay a 3% "use tax" computed on how much the truck will be used in Mississippi. For example, if a truck will be used 10% of the time in Mississippi, the 3% tax would be calculated on 10% of the purchase price. Mississippi companies buying trucks outside the state already pay the use tax.
The change, which goes into effect July 1, will mean about $600,000 less in sales tax collections each year for the state. But the additional revenue generated for Mississippi businesses should help offset that, according to the state tax commissioner.
The Mississippi Trucking Assn. requested the change to bring the state more in line with other states.