Trucking Tax Breaks Under Fire In Oklahoma

January 10, 2000

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An Oklahoma state legislator thinks the state's tax break for trucks has gone on long enough.

State Rep. Russ Roach says it is unfair that truck owners pay only $10 in excise taxes on a $100,000 truck, yet car buyers pay $650 on a $20,000 car. He wants truckers to pay the same tax rate of 3.25% that auto buyers pay.
Roach wants the state Legislature to reconsider the tax incentive, passed in the 1980s to help make Oklahoma a trucking hub. He said the tax break doesn't necessarily create new business in the state, and that other economic development incentives are subject to time limits.
The state has become a popular place to register trucks. In 1997, it had more combines truck-trailer registrations than any other state. Nearly 444,400 trucks registered in the state the last fiscal year, bringing the state $25.7 million.
A number of third-party licensing providers help out-of-state trucking companies register in Oklahoma. They rent their address and phone number to the carriers and do administrative work for them so that the companies can qualify to register under state law.

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